AI data transparency shapes shopping behavior
A new survey of over 1,000 US consumers looks at how holiday shopping behavior is impacted by brand management of personal data in AI systems.
The study from Relyance AI suggests Americans are entering the gifting season emotionally depleted and digitally exposed, with most planning to shop online. But feeding more personal data into systems during periods of high stress and emotional depletion sets the stage for a fragile purchasing environment.
Consumers show concern that companies can’t control personal data once AI enters the workflow. AI data risk is no longer theoretical to shoppers -- it’s shaping purchase decisions and impacting market behavior as a whole. When asked about companies losing control of personal data inside AI systems. 82 percent call it a serious problem, with 43 percent saying it’s very serious. In addition 81 percent believe brands are likely training AI models on personal information without full disclosure.
If a brand admits it can’t trace where personal data goes in AI, the public response is unforgiving, 84 percent abandon the brand or significantly reduce engagement, while 52 percent say they would consider joining a legal action.
“AI has pushed data risk into every corner of a business, and consumers are increasingly aware of the exposure this creates from a personal data privacy perspective,” says Abhi Sharma, Relyance CEO and co-founder. “The only way to earn consumer trust is to show, not tell. Brands must be able to trace personal data through every AI system they deploy, because visibility isn’t a compliance feature anymore -- it’s a competitive differentiator that retains customers, safeguards revenue, and protects brand equity.”
The findings show that companies offering meaningful transparency can unlock massive upsides. Given a direct trade-off, consumers are split 50/50 between transparency and price, with 50 percent choosing the brand that shows exactly where their data goes, and 50 percent choosing the brand with the lowest price. For shoppers spending $250–$1,000, 55 percent choose transparency over price; for those spending $1,000+, 56 percent would prioritize transparency. 76 percent say they are likely to switch to a competitor that provides meaningful AI data transparency, even it means higher prices.
People want action too, 84 percent say companies should be required to prove they can trace where personal data goes inside their AI systems. When asked to choose between elements of AI-era transparency they would most like to see companies taking on 37 percent say brands must prove their data was not used to train AI, while 36 percent want a clear map showing exactly where their data goes.
The full report is available from the Relyance site.
Image credit: Skorzewiak/depositphotos.com
