InsightPress Release

AI pose data privacy and security concerns among customers

LONDON, UK — A new report from the customer experience experts, CX Network, has revealed that two in five (43%) of customers are concerned about ethical AI use.

29% of CX professionals record a positive impact on customer loyalty as a result of their use of generative AI, but with customers levelling up their understanding of how AI works and uses company data, 55% of CX professionals agree that data privacy and security is becoming more important to customers. As a result, customers are demanding tighter security across data privacy, and desire greater transparency where companies are implementing AI.

The findings, which have been highlighted in CX Network’s flagship report, “The Global State of CX 2024,” look into the latest trends in CX and customer behavior.


Compiled using survey responses from 282 CX practitioners, service leaders, experience designers, analysts and consultants, the report covers the CX trends, tech developments and customer behaviours of the last year.

The report found that automation is the top investment priority for CX in 2024, with 42% of professionals listing it as their main focus in 2024. Other spending priorities included data insights and analytics (38%) and conversational AI chatbots and virtual assistants (28%).

While investment in AI technologies will be a necessity, 42% of professionals cited demonstrating ROI as the most common obstacle to bringing these investments to life. CX professionals will face pressure to prove the worth of their spending plans experts reveal.

Jaakko Lempinen, Head of Customer Experience for YLE Finland, said, “Transparency is crucial. Companies should be open about how AI technologies are employed in their operations, specifically in how data are collected, analyzed and utilized to improve CX. This involves clearly communicating the purposes of data collection and the benefits to the customer, ensuring there is an understanding of the value exchange.”

“Organizations should actively involve customers in the development of AI solutions through feedback loops, allowing them to express their concerns and preferences. Engaging in dialogue about AI and its role in CX helps demystify technology for customers and builds a foundation of trust.”

“Collaborating with regulatory bodies, industry groups and other stakeholders to shape the future of ethical AI use, not only positions the organisation as a leader in this space but also helps to ensure that the development of AI technologies benefits all stakeholders in the CX ecosystem,” Jaakko explained.

Anna Noakes Schulze, Head of Community Experience at The NTWK, said, “CX often adopts technology after other functions such as marketing, where cutting-edge technologies are required to grab the customer’s attention in new and inventive ways. Customer experience is tasked with nurturing and preserving the customer relationship, which naturally lends itself to more conventional, lower-risk approaches that already have a proven track record. These conservative tendencies work against experimentation with cutting-edge tech, except in a few rare cases like generative AI where the efficiency gains all but guarantee a positive return on investment.

“If these technologies are not yet important to your customers, then pay attention to what the more future-forward brands are doing and see what you can learn from their initiatives,” she noted.

To view the full report, click here.

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