AI Data Use Erodes Consumer Trust as Majority Demand Privacy and Transparency, Study Finds

Data Consumer Trust Crisis Hits Marketing as AI Data Use Sparks Privacy Concerns

A recent European study reveals a growing unease among consumers about how their data is used, especially in training artificial intelligence systems. With 59% of respondents opposing AI training use of their data, marketers face new challenges in building trust while leveraging AI-driven personalization.

Key Study Insights

The State of Digital Trust 2025 report, commissioned by Usercentrics and conducted by Sapio Research, surveyed 10,000 frequent internet users across Europe and the United States. It highlights shifting attitudes toward data collection and AI, based on responses from countries including Germany, the US, UK, Spain, Italy, and the Netherlands.

• 59% of consumers are uncomfortable with their data being used to train AI systems.
• 46% accept cookies less frequently than three years ago, signaling increased privacy awareness.
• Trust varies widely by industry, with financial services scoring highest (57%) and automotive lowest (13%).
• Only 23% of consumers fully understand how companies use their personal data.
• 65% are willing to share data if they maintain control over the process.

Why This Matters for Marketers

Consumer resistance isn’t about rejecting technology. It’s about a demand for transparency and control. As Adelina Peltea, CMO at Usercentrics, puts it, “Brands build loyalty not just by complying with regulations but by giving users real control over their data.”

For marketers, this means cookie consent banners and privacy notices are no longer just legal checkboxes; they're integral to trust-building.

Behavioral Shifts and Trust Gaps

Nearly half of users now scrutinize consent banners more carefully, and 36% have adjusted privacy settings or stopped using services due to privacy concerns. Meanwhile, trust levels differ sharply by sector:

• Financial institutions: 57%
• Government/public sector: 49%
• Medical/pharmaceutical: 49%
• Technology services: 33%
• Technology hardware: 28%
• Social media: 28%
• Hospitality/travel: 22%
• Retail: 21%
• Automotive: 13%

This variation underscores the need for industry-specific privacy strategies that go beyond compliance and genuinely address consumer concerns.

Geographic and Demographic Differences

Consumer caution about sharing data is higher for companies based in the US (73%) and China (77%) compared to European firms. Generational divides also appear, with 39% of Gen Z trusting social media platforms, higher than the overall 28% trust level for these companies.

These nuances suggest marketing approaches must be tailored not just by sector but also by geography and target demographic.

Opportunities in Transparency and Education

Despite low understanding of data use, consumers want to learn more. Organizations that clearly communicate data practices in simple terms can gain a competitive edge in privacy-conscious markets.

Most users are not against data collection but want meaningful choices and clear value in exchange for their information. Marketers who provide this will better engage audiences and reduce friction caused by privacy concerns.

Looking Ahead

The timing of this research aligns with significant regulatory shifts in digital advertising privacy. For example, Microsoft mandated user consent for European Economic Area users by May 2025, while Google continues to support third-party cookies on Chrome despite industry moves to phase them out.

Marketing professionals should monitor these developments closely to adapt consent strategies and stay ahead of enforcement actions, which have already targeted deceptive cookie consent practices in Europe.

For marketers interested in practical AI applications that respect privacy, exploring focused AI training can help balance innovation with compliance. Check out relevant courses at Complete AI Training to build skills aligned with current data privacy expectations.