Consumer Trust in Brands Wanes as ChatGPT Disrupts Marketing Industry: Global Study from Jack Morton Reveals Skepticism and Regional Differences
BOSTON, Nov. 21, 2024 /PRNewswire/ -- Jack Morton, a leading global brand experience agency, today reported its latest findings from its global research program, Experience Better/Insights. The new report reveals a significant shift in consumer sentiments with the arrival of ChatGPT as a disruptive player in the creative and marketing services industry. This marks a pivotal moment in the relationship between brands and consumers across the globe. The study builds upon the first half of research released earlier this fall.
Data shows that more than 50% of consumers say they will no longer trust a brand that doesn't live up to its promises. One-quarter of consumers worldwide take it to a place even more damaging for brands in that they believe making promises they don't intend to keep is just what brands do. This level of cynicism can undermine any sincere efforts brands make to earn consumer trust.
The comprehensive study highlights the transformative impact of ChatGPT on consumer expectations and brand trust. "The incredible opportunity for personalization at scale in entertainment, shopping, and experiences of all kinds can be fully realized when consumers trust brands with their personal data and trust them to deliver on the promises they make," said Damian Ferrar, EVP, Global Innovation Director at Jack Morton.
The research, which surveyed 5,000 consumers across the US, UK, UAE, Singapore, and Saudi Arabia, underscores the evolving attitudes towards data privacy and brand trust in the post-ChatGPT era. Key findings include:
- Increased Consumer Skepticism: Prior to ChatGPT's release, only 29% of consumers were willing to share their personal data with brands. Post-ChatGPT, this number has seen a slight increase, but skepticism remains high, with nearly half of US consumers stating that brands rarely live up to their promises. In addition, people care more today about how brands behave than they did pre-GPT but have less faith in their ability to deliver what they promise.
- Heightened Expectations: Consumers now expect brands to act as good partners and corporate citizens. The study found that 85% of consumers globally, and 88% in the US, care about how brands behave towards their communities, customers, and employees.
- Regional Differences: There are notable regional differences in brand trust. In the US and UK, roughly one third of consumers will stop buying a brand if it doesn't live up to its promises. However, in Singapore that number jumps to almost half (43%).
Added Joe Panepinto PhD, SVP, Executive Strategy Director and Global Head of Learning and Engagement, "Our research tracked a significant uptick over the last few years in the percentage of consumers who think brands don't live up to their promises. This growing cynicism can undermine any sincere efforts brands make to earn consumer trust. Brands must be careful what they promise and ensure their actions align with their commitments."
As companies navigate this new era of AI-enabled, hyper-personalized experiences, it is crucial for brands to build and maintain consumer trust. This report provides valuable insights for brands looking to enhance their digital presence and improve customer engagement.
The research was conducted by Jack Morton with support from YouGov and RepData in late spring 2024. Consumers were asked questions about sharing personal data, the expectations for AI and experiences and feelings about how brands behave.
The first part of the Experience Better/Insights report, released in September 2024 examined data privacy in a post ChatGPT world and consumer willingness to share personal data for AI-driven brand experiences.
To access the latest Experience Better/Insights report and gain deeper understanding into consumer attitudes toward data privacy and brand trust, visit our website to download.
About Jack Morton
Jack Morton is an award-winning global brand experience agency. We partner with the world's most powerful companies to build stronger relationships between brands and the people who matter most to them. Driven by our mission to "Be extraordinary," we inspire the world to experience better. We do this through integrated marketing campaigns with experience at the core. Our specialized practice brands include Jack Health, Vivi, Jack 39, Jack X, and Genuine. Our work and agency culture has won some of the world's most prestigious industry awards, including AdWeek's Experiential Agency of the Year, Cannes Lions, Effies, D&AD pencils, Clios, Emmys, EX Awards, and Campaign's Experience Awards, as well as Global Agency of the Year and Best Places to Work. Founded in 1939, Jack Morton is part of the Interpublic Group of Companies (NYSE:IPG). Visit us at www.jackmorton.com or follow us on LinkedIn, Instagram and YouTube.
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