#ConsumerRightsDay: Earning consumer trust in an AI-powered world

BY EDWARD ISRAEL-AYIDE

In today’s fast-paced digital world, Artificial Intelligence is no longer just a buzzword—it’s a game-changer in how businesses engage with consumers, and its growing presence is reshaping the consumer landscape at a rapid rate.

AI has enabled businesses and brands to understand consumer behaviour, preferences and their needs on a granular level. This knowledge allows for the creation of personalised and tailored experiences, from product recommendations to targeted marketing messages, enhancing customer satisfaction and engagement.

In Nigeria, AI is revolutionising how financial institutions engage with customers in the banking sector. AI-powered chatbots are integrated into bank websites and mobile apps, providing customers with assistance around the clock and, ultimately, more convenient and tailored experiences. UBA’s LEO is an excellent example of this.

The challenge of building trust in the AI era

However, with this expanding technological frontier comes a heightened responsibility. Consumers, globally and here in Nigeria, are understandably wary. They are questioning how their data is used, the fairness of algorithmic decision-making, and the broader ethical implications of AI.

High-profile cases of AI misuse have damaged consumer trust, prompting greater awareness about data usage and privacy. As Ajay Bhalla, President of Cyber and Intelligence Solutions at Mastercard, shared, companies can no longer assume trust; they must earn it. They must treat their technology as ‘guilty until proven innocent,’ proactively demonstrating responsible AI use and being prepared to explain their systems’ decisions.

How unethical AI practices erode trust

Algorithmic bias, data breaches, and social media content moderation controversies have eroded trust in the very technologies meant to improve our lives. Unethical AI practices have damaged brand reputation and consumer loyalty. For instance, financial institutions have been accused of using AI algorithms that exhibit bias against certain demographic groups, particularly in loan approval processes.

Similarly, in the recruitment sector, there have been cases where AI-driven diagnostic tools have been biased and discriminatory against certain groups of people. A 2020 study by the Centre for Social Awareness, Advocacy and Ethics found that AI-powered recruitment tools were biased against candidates from certain regions and ethnic groups.

Now more than ever, we must address a pivotal challenge facing our digitally connected society: the imperative of fostering consumer trust in a world increasingly driven by artificial intelligence.

Restoring trust: The way forward

The path forward lies in adopting and upholding fair and responsible AI principles. Fairness compels us to mitigate biases that may exist within our datasets. Algorithms must be rigorously tested to ensure they do not replicate or amplify existing societal inequalities.

Transparency has also become paramount. Companies must now clarify how AI systems operate, how data is used, and how AI-powered decisions are reached. This openness empowers consumers with understanding and fosters a vital sense of agency. Efforts like Microsoft’s “Map, Measure, Manage” framework exemplify how transparency can strengthen brand loyalty.

The role of marketing professionals and the media

Marketing professionals and the media play a crucial role in championing responsible AI practices by ensuring that AI-driven initiatives align with ethical standards and consumer expectations. They can also advocate for transparency, fairness, and accountability in AI deployment, guiding decision-making processes to prioritise consumer trust and privacy.

By leveraging their expertise and effective communication and collaboration with the private sector and government, they can also facilitate the implementation of responsible AI practices, helping foster long-term relationships with consumers and the public based on integrity and trust.

Comprehensive consumer education is another area in which the marketing communications industry and the media can support. By dispelling misconceptions, demystifying the complexities of AI, and providing accessible information, we can empower consumers with the knowledge to navigate this evolving technological landscape.

True progress also demands robust collaboration. Industry stakeholders must engage with regulatory bodies like NITDA and consumer advocacy groups to develop ethical AI guidelines and best practices. Proactive collaboration will balance technological innovation with a steadfast focus on consumer protection.

Trust as the key to success

The companies and organisations that succeed in this new era will be those that place consumer trust at the heart of their AI strategies. Prioritizing fairness, transparency, and accountability isn’t simply a matter of good ethics; it’s a matter of sound business practice.

The potential benefits are profound. By earning consumer trust, we forge meaningful, enduring relationships between businesses and those we serve. We also create a digital environment where innovation flourishes alongside a profound respect for consumer rights and well-being. As technologists, business leaders, and advocates, we must all commit to building a future where AI serves society equitably, works to empower individuals, and operates within a robust framework of ethical principles.

Israel-Ayide is the founder/head of communications and strategy at Carpe Diem Solutions, a PR agency based in Lagos. This article is a summary of his speech delivered at the 2024 Brand Journalists Association of Nigeria Consumer Rights Day event.