Only 18% of Americans trust AI companies with their data-yet they keep using them
A new study by Cloaked reveals a fundamental contradiction in how Americans approach AI: they distrust the platforms they use daily and actively work to limit what data those platforms can access. Among 1,009 surveyed U.S. adults, just 18% trust AI companies to keep personal data secure, yet most remain active users of AI-powered services.
For marketers, the finding signals that trust is becoming a competitive advantage. As AI becomes embedded in search, customer service, personalization, and advertising, the brands that clearly explain how they collect, process, and protect data may pull ahead.
What the research shows
The gaps between stated concerns and actual behavior are striking:
- 64% believe AI makes decisions about them without their knowledge or consent
- 75% feel constantly monitored by the technology they use
- 44% would pay more for a service that guarantees their data won't be processed by AI
- 31% admit to providing fake information when prompted by AI services
- More than half actively opt out of data collection and tracking whenever possible
When asked about sharing sensitive information, Americans expressed the most discomfort with:
- Social Security numbers (88%)
- Financial information (87%)
- Biometric data (74%)
- Private messages (71%)
- Home addresses (70%)
The concerns extend beyond targeted advertising to how AI systems process highly personal information.
Why consumers are pulling back
More than half of respondents said they've accepted that companies know more about them than they're comfortable with. Nearly two-thirds believe they have less control over their personal data than five years ago.
Instead of abandoning technology, consumers adopt defensive tactics: opting out of tracking, refusing to sign up for services, providing inaccurate information, disabling cameras, and deleting apps over privacy concerns.
One finding stands out: 43% would leave an AI platform if they discovered it was making decisions about them regarding credit, hiring, or insurance without consent. For marketers, this signals growing sensitivity around algorithmic decision-making and transparency.
Meta AI outperforms competitors on trust
Despite widespread skepticism, the study found meaningful differences between platforms. Among AI users surveyed:
- 67% of Meta AI users felt comfortable with the platform handling their personal data
- 63% of Claude users agreed
- 62% of Grok users agreed
On trust specifically, Meta AI ranked first at 36%, followed by Perplexity at 31% and Grok at 27%. ChatGPT users reported the lowest confidence, with only 20% expressing trust in the platform's ability to protect data.
Meta AI users reported trust levels nearly double those of ChatGPT users. The study doesn't explain why, but platform familiarity, ecosystem integration, or perceptions of transparency may play a role.
Five lessons for marketing teams
Trust is a differentiator. Consumers increasingly evaluate brands based on how responsibly they handle data. AI-powered personalization improves experiences, but only when users understand what's collected and why.
Transparency beats complexity. The strongest negative reactions came from scenarios where AI operated without visibility or consent. Explain clearly how AI supports customer experiences and what safeguards exist.
Privacy can be a premium feature. Nearly half of respondents would pay more for services guaranteeing their data won't be processed by AI. Privacy-focused positioning could differentiate brands in crowded markets.
Don't assume younger audiences are comfortable with unrestricted data use. Gen Z users were among the most likely to feel powerless about protecting their data and among the most likely to report declining trust in AI over the past year.
AI governance is now a brand issue. Privacy concerns have moved beyond legal and compliance teams. Consumer perceptions of AI usage increasingly affect brand reputation, loyalty, and retention.
What comes next
Americans aren't rejecting AI outright. They're making a pragmatic trade-off: they use AI-powered tools because they see value, but they increasingly look for ways to limit how much personal information those systems can access.
The next phase of AI adoption may not be determined by who has the most advanced models. It may be determined by who earns the most trust. Brands that balance personalization with transparency, convenience with consent, and innovation with privacy may be best positioned to win.
For marketing leaders, understanding this shift is essential. Explore how to build AI for Marketing strategies that respect consumer concerns, or consider the AI Learning Path for Marketing Managers to develop frameworks for responsible AI adoption.
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