92% of Marketers Use AI, but Personalization Gap Threatens Trust and Innovation
Nearly all marketing professionals (92%) are leveraging artificial intelligence (AI) in their daily operations, transforming it from a buzzword into an essential tool.
According to a comprehensive survey conducted by SAP Emarsys involving over 10,000 consumers and 1,250 marketers, businesses are deriving tangible benefits from AI implementation, but there’s a growing apprehension among consumers, particularly regarding their personal data. This discord could potentially undermine the personalized shopping experience that brands strive to create.
The rapid integration of AI into marketing strategies has been swift and decisive. As Sara Richter, CMO at SAP Emarsys, aptly notes, “AI marketing is now in full swing; it has transitioned from theoretical concepts to practical applications as marketers embrace AI within their strategies and explore its potential.”
For businesses, the appeal is evident. 71 percent of marketers report that AI facilitates faster campaign launches, saving an average of two hours per campaign. This newfound efficiency allows teams to focus on more creative and strategic tasks, freeing them from repetitive work.
The positive impact on the bottom line is unmistakable. Sixty percent of marketers have observed an increase in customer engagement, while 58 percent report enhanced customer loyalty since incorporating AI.
However, consumers paint a different picture. The survey reveals a “personalization gap,” where marketing efforts often miss the mark despite significant investment in AI-driven customization. Even with heavy emphasis on personalized advertising, 40 percent of consumers feel brands fail to understand them as individuals—a significant increase from 25 percent the previous year. To compound matters, 60 percent say the majority of marketing emails they receive are irrelevant.
Delving deeper, it becomes clear that there’s a crisis of confidence in how personal data is being handled for AI marketing. Sixty-three percent of global consumers express lack of trust in AI with their data, a significant increase from 44 percent in 2024. The UK market shows even more concern, with 76 percent of shoppers expressing discomfort.
This erosion of trust comes at a critical juncture as new regulations come into play. A year after the EU’s AI Act was introduced, over a third (37%) of UK marketers have revamped their AI approach, with 44% stating their use of the technology has become more ethical.
This creates a tension that the industry is grappling with: how to ensure responsibility without stifling innovation. While the AI Act provides a clearer rulebook, over a quarter (28%) of marketing professionals fear that strict regulations could hinder creativity.
As Dr Stefan Wenzell, Chief Product Officer at SAP Emarsys, asserts, “regulation should strike a balance—protecting consumers without hampering innovation. At SAP Emarsys, we believe responsible AI is about building trust through clarity, relevance, and intelligent data utilization.”
The message for retailers is clear: prove your worth. Consumers are open to using AI when it offers genuine benefits. Over half of shoppers agree that AI simplifies shopping (55%) and speeds up the process (53%), aiding in product searches, price comparisons, or generating gift ideas. The appeal for user-friendly AI is evident, but it must be accompanied by transparency and respect for privacy.
Some brands are successfully navigating this landscape by prioritizing people over technology. Sterling Doak, Head of Marketing at iconic guitar manufacturer Gibson, emphasizes the importance of thinking differently. “If I can find an AI utility that helps my staff think more strategically and creatively, that’s crucial because we’re a creative business at heart,” Doak explains. For Gibson, AI serves as an enhancer for human creativity rather than just an automation tool.
Similarly, Australian retailer City Beach leveraged AI marketing to retain customers. Mike Cheng, the company’s Head of Digital, discovered that AI was a powerful tool for identifying and winning back customers on the verge of leaving. “AI was able to predict customer churn at an individual level, enabling us to send targeted campaigns,” Cheng notes. This strategy resulted in the return of 48 percent of those customers within three months.
What these success stories share is a focus on solving real problems for people. As retailers delve deeper into what SAP Emarsys calls the “Engagement Era,” the path forward is becoming clearer. Investment in AI isn’t waning—64 percent of marketers are planning to increase their budgets next year.
The technology isn’t the problem; it’s how it’s being used. Retailers must bridge the gap between their actions and consumer sentiment. That means going beyond basic personalization to offer real value, being transparent about data usage, and demonstrating that shared information leads to a superior experience.
The AI revolution is underway, but for it to truly flourish, marketing professionals must keep the human element in focus.
