“Consumer trust is essential for AI adoption. With data privacy concerns and some scepticism about the true capabilities of AI, businesses need to focus on transparency and ethical AI. The impending EU AI Act will significantly enhance consumer protection in the use of AI and will be a critical vehicle for businesses to win and retain the trust of their customers around the use of AI in general, and especially in the world of e-commerce. By demystifying AI and respecting individual rights, we can turn scepticism into support for AI that will improve our lives and empowers us as consumers.” said Eoin O'Reilly, Partner, Head of AI & Data at EY Ireland
Cybersecurity concerns
Privacy concerns are paramount, with a significant 72% of consumers cautious about sharing data with brands, signalling that businesses must work to earn trust amidst prevalent data breaches and identity theft. Moreover, cybersecurity fears are elevated, with 83% of consumers stating they would not continue membership, subscription or contract with an organisation who experience a major cyber breach. Specific concerns include identity theft (60%), viruses (59%), and selling information to third parties (58%), emphasising the urgent need for strong digital defences to safeguard consumer trust.
Concerns when engaging online
Consumer businesses must respond to these growing digital threats, whilst again utilising impending legislation. An example of such legislation includes the NIS2 Directive, which offers a chance for many businesses to enhance cybersecurity and comply with regulations. Adopting cyber risk management and reporting guidelines can help organisations improve their defences against cyber threats and build consumer trust.
“As consumers increasingly embrace digital platforms to enhance their shopping experiences, the importance of cybersecurity in the consumer space has never been more critical. In an era where a single breach can erode trust and loyalty built over years, businesses must prioritise robust cybersecurity measures as a cornerstone of their customer value proposition. By staying ahead of the curve and proactively adopting frameworks like the EU's NIS2 Directive, organisations can not only meet regulatory demands but also lead the way in safeguarding their customers' data. The benefits of robust cybersecurity extend beyond mere protection. They encompass the confidence and peace of mind that customers feel, knowing that their chosen brands are vigilant guardians of their digital data. Investment in cybersecurity forms a crucial part of a resilient business strategy, and by placing data and privacy security at the forefront, businesses can create a value differentiator for their customers.” said Puneet Kukreja, Cyber Security Leader at EY UK & Ireland
Data sharing and the human touch
When it comes to data sharing, a considerable 39% are unwilling to part with their information for recommendations, deals, and advertisements, highlighting a desire for privacy over personalisation. Conversely, 50% are open to sharing anonymous data if it leads to cheaper products, suggesting a nuanced approach to privacy that balances affordability with confidentiality.
The human touch remains a cherished element in the digital realm, with 64% of Irish consumers preferring online platforms that offer human customer service support. This preference is particularly pronounced for addressing post-purchase issues, returns, and refunds, indicating that AI cannot fully replace the empathy and understanding of human interaction.
“Adapting to the evolving needs of consumers in this digital age requires a forward-thinking approach that embraces the huge potential that AI and other emerging technologies will deliver. The key to serving the changing consumer needs lies in understanding the delicate balance between technology and human insight. Businesses that can harness the power of AI to offer personalised experiences while maintaining a strong ethical framework for data privacy will get ahead. It's about leveraging technology to enhance, not replace, the human elements of trust and connection that are fundamental to consumer relationships. By doing so, we can create a retail environment that not only meets the expectations of the Irish consumer but also sets a new standard for the global digital marketplace.” said Colette Devey, Consulting Partner and Consumer Sector Lead at EY Ireland
Summary
In conclusion, the latest EY Future Consumer Index shows Irish consumers are at a crossroads, embracing the convenience of AI while seeking the need and reassurance of human connection throughout the consumer journey. As consumer-facing businesses and policymakers chart a course through this digital landscape, they must navigate the AI paradox with a focus on consumer trust, privacy, and the irreplaceable value of the human touch.
