Building Consumer Trust in AI with Tighter Regulations

Seemingly overnight, artificial intelligence has become part of our day-to-day lives, sparking a range of emotions from curiosity and excitement to fear and uncertainty. As more organizations integrate generative AI into their work and how they interact with their audiences, consumer trust in AI will be a key factor in how newer models are deployed. Despite the wide array of feelings AI evokes, our recent study shows that, surprisingly, mistrust isn’t common among them. 

Consumers’ Feelings About AI Fluctuates

According to Sago’s study, 68% of consumers surveyed feel the information generated by AI is reliable and accurate. That’s good news for brands that are already using AI to better connect with consumers, amplify their marketing strategies, and personalize buying experiences to increase consumer satisfaction and drive sales. Human voices are still the cornerstone of market research – with 60% of participants stating trust in generated answers solely depends on the topic up for discussion. Speaking with a human moderator, who can be empathetic and understanding when conducting qualitative research, is still preferred by 56% of those surveyed.

But, as AI continues to evolve, building consumer trust and ensuring transparency in its operations will be critical to brands’ long-term success.

Perhaps the most interesting takeaway from this survey is how the findings point to the importance of transparency in building consumer trust in AI. When asked what could make participants trust AI more, there was a tie at 22% for two factors:

1. openness and transparency in AI systems, which includes understanding how AI operates, the data it uses, and the decision-making processes involved, and
2. clear guidelines and regulations that ensure AI is developed and deployed in a responsible and trustworthy manner. Cumulatively, these factors point towards a need for regulation – which the data overwhelmingly supports.

Proactive Regulation will Help Consumers Trust the Technology

It should come as no surprise then that a whopping 74% of consumers surveyed believe AI should be regulated. With clearly outlined regulations, brands can achieve that trust factor with their core consumer audience. Especially since 30% of surveyed individuals would prefer a multi-stakeholder (i.e. governments, industry, academia, civil society, and international organizations) approach to these regulations. When social media first made its appearance, we learned that the absence of regulation had some substantial consequences. The lack of guidelines on social platforms enabled the spread of misinformation and radical content, and consumers seemingly don’t want to see history repeat itself. 

Keeping Control of AI with the End User

The big picture is that end users want to keep control of AI – 36% of participants believe Individuals should have the freedom to decide how to interact with AI technologies, managing the risks associated with AI use rather than relying solely on external regulations. Brands leading the AI charge can proactively address this call to action, while also building consumer goodwill, by being transparent with how AI uses consumer data and advancing the collaborative regulation of AI that mutually benefits businesses and protects consumers. 

Brands have the chance to utilize AI not just as a tool, but as an opportunity. Drawing from the lessons learned from the emergence and evolution of social media, the regulation of AI should focus on prioritizing transparency, accuracy, and ethical use while ensuring human interaction and connection never fall by the wayside.

Companies should position themselves to be at the forefront of these discussions, fostering trust with consumers by advocating for regulations and preventing tech titans from dominating the future and impacts of AI, as was the case with the rise of social media. By adopting a proactive approach, brands can foster an environment where consumers feel confident in their understanding of AI and its applications on their purchases, ultimately paving the way for long-term success in the era of AI-driven solutions.