Google recently announced an update to its Gemini AI assistant that says a lot about where conversational AI is headed. The update allows Gemini to deliver more tailored responses by using personal data, starting with users’ search histories.
This change signals a shift in how AI builds consumer trust. Trust is about more than protecting privacy; it’s also about the value AI provides. And this evolution is not limited to AI.
Think about it. How often do you closely review the consumer privacy caveats when you buy the latest iPhone or update your operating system? We share sensitive personal data with Apple without much consideration because we trust Apple to deliver consistent performance personalized to our needs. And we share location data with wayfinding apps without balking because they need to know where we are to give us accurate instructions.
Conversational AI can gain our trust by offering a value exchange: personalization paired with empowerment and transparency that brings consumers along for the ride.
Trust as a value exchange
The old playbook says trust hinges on privacy. Keep data safe, and consumers will feel secure. But reality tells a more nuanced story. The 2024 KPMG Generative AI Consumer Trust Survey found that 70% of U.S. consumers believe AI’s benefits outweigh its risks, with over half trusting it for personalized recommendations or customer service.
Privacy is part of a larger mosaic of trust. Take Amazon’s AI-powered recommendation engine, which drives 35% of its sales. Shoppers know their browsing history fuels those suggestions, yet they keep clicking because the payoff (finding exactly what they need) feels worth it.
This doesn’t mean privacy is irrelevant. Privacy breaches can shatter trust. But privacy is a baseline expectation. When AI delivers, consumers trade data for outcomes. Conversational AI tools such as ChatGPT, Gemini, and Perplexity must lean into this exchange.
Personalization and empowerment
If performance opens the door to trust, personalization and empowerment deepen trust. According to Twilio, 57% of consumers will spend more on brands that personalize experiences, and 66% will quit a brand that does not.
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