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London, UK, January 30, 2024
New AI-powered technologies critical to the future of brand experiences, according to latest Merkle research
Merkle, dentsu’s leading technology-enabled, data-driven customer experience management (CXM) company, has released the latest instalment of its Imperatives research, highlighting the consumer appetite for AI-powered technologies to deliver better digital journeys.
The research, which surveyed 2,100 consumers and 820 brands across 18 countries and three continents, found that 87% of consumers believe that Natural Language Processing (NLP) driven by AI would improve their brand experience. In addition, 83% reported the same positive sentiment about smart devices, while 82% also said the Metaverse, Augmented Reality (AR) or Virtual Reality (VR) would improve their brand experience. These new technologies include platforms like ChatGPT, Amazon’s Alexa and Apple’s Siri, language translation, and even virtual shopping assistants.
While the experiential benefits of these new technologies, such as cost-effectiveness, convenience and consistency for their brand experiences, are clear to most consumers, the majority have not interacted with them. Only 8% of buyers have used Metaverse, AR or VR technologies, while just 10% have used NLP and 14%, smart devices.
Yet despite the perceived benefit of AI-powered technology, the research demonstrates that trust remains low. Nearly four in five of consumers (79%) are concerned about their data and privacy being protected with the integration of AI into their brand journeys. Other concerns include the technology being hacked or hijacked to cause harm (79%), recording without consent (76%), tracking without consent (73%) and whether the technology is biased (68%).
Without proper oversight, AI-powered technologies can produce unintended consequences that detract from the overall customer experience and destroy brand trust. Merkle calls on brands to provide reassurance and transparency around how they intend to use AI, within a technical and ethical framework that ensures security and accountability.
“The potential for AI-powered technology in customer journeys is vast and is rapidly being integrated into every customer touchpoint to improve experiences. As brands race to incorporate solutions to deliver a more immersive future, security and surveillance are likely to remain top of mind for consumers, so brands must work hard to overcome these concerns by putting the right technology and policies in place,” said Margaret Wagner, President EMEA, Merkle.
Across the dentsu group, brands are being supported to integrate AI tools into their new and existing products and services. Dentsu has introduced a secure, enterprise infrastructure that enables AI innovation, which it is testing, prototyping and applying to real world brand challenges. By working within safe internal spaces, rather than using external tools, it is keeping confidential information safe and secure.
The 2024 Imperatives are available in a downloadable research report. Download the report here
About Merkle
Merkle, a dentsu company, powers the experience economy. For more than 35 years, the company has put people at the heart of its approach to digital business transformation. As the only integrated experience consultancy in the world with a heritage in data science and business performance, Merkle delivers holistic, end-to-end experiences that drive growth, engagement, and loyalty. Merkle’s expertise has earned recognition as a “Leader” by top industry analyst firms, in categories such as digital transformation and commerce, experience design, engineering and technology integration, digital marketing, data science, CRM and loyalty, and customer data management. With more than 16,000 employees, Merkle operates in 30+ countries throughout the Americas, EMEA, and APAC. For more information, visit www.merkle.com.