Survey: 71% of consumers abandon irrelevant AI experiences
Despite increasing adoption, a gap remains between companies and consumers when it comes to artificial intelligence tools.
Ninety-six percent of companies say AI is improving customer-facing operations such as support, marketing, and personalization, according to customer engagement platform Twilio’s latest State of Customer Engagement Report, and 75% report seeing increased customer spend from personalization efforts. However, only 45% of consumers feel “understood” by the brands they interact with. This figure is down slightly from 46% in 2024.
Eighty-three percent of business leaders claim to “deeply understand” their customers. Seventy-one percent of consumers will walk away from purchases if the experience doesn’t feel relevant, but 88% said they are more likely to buy when engagement is personalized in real time. Only 44% of brands say they’re executing at that level.
More than half (56%) of brands surveyed by Twilio now use AI to tailor experiences, including personalized content and recommendations, real-time support, and dynamic offers, leading to 75% of leaders reporting increased customer spend. Still, 61% of consumers don’t believe brands use their data in their best interest, and 55% say they’re tired of hearing about AI.
While 90% of consumers trust at least some brands, only 15% “absolutely” trust them with their data. Eighty-four percent want control over their personalization settings, and 54% want to know when they’re talking to AI and not a human.
[READ MORE: Customer AI engagement grows, but trust issues remain]
“AI has opened the door to more personalized customer experiences than ever before – but technology alone isn’t the answer,” said Chris Koehler, chief marketing officer at Twilio. “Our research shows that to truly engage customers, brands must earn their trust, respect their preferences, and meet them in real-time with experiences that feel human. In today’s climate, customer loyalty is harder to earn — and the brands that succeed will be the ones that invest in the right tools to deliver personalization at scale, while maintaining transparency and putting the customer first.”
Twilio surveyed 7,640 global consumers and 637 business leaders in 18 countries from Jan. 3 to Feb. 17, 2025.
