Purpose, pace and trust: Closing the gaps between brands and consumers

The level of investment in AI is so staggeringly large that the numbers almost cease to have meaning. Many of the most well-known global tech giants have committed hundreds of billions in AI investments, to the point that Gartner predicts global AI investment will top $2 trillion by next year.

As companies chase what may be a once-in-a-lifetime business opportunity, I focus on something narrower: What will AI investments mean for clients and for the consumers they want to connect with? From personalized shopping experiences to predictive customer service, AI is transforming how brands engage with consumers. It’s happening rapidly, but is it working?

When I sit with clients, many of them say they are overwhelmed by the intense urgency to invest in AI and feel like they are falling behind. This vague insecurity about whether progress is happening and how they stack up is a common phenomenon. There is a massive amount of investment in AI paired with increasing uncertainty about meaningful returns.

And yet, consumers want better, more innovative experiences. Research from my company has found that while nearly every company is pursuing AI initiatives, 60% of consumers are comfortable using AI in brand interactions and 40% believe AI-driven interactions warrant a premium price – but only if those interactions deliver real value.

So, what’s causing the disconnect? The real challenge is relational. Companies are facing three critical consumer gaps in their AI strategies: purpose, pace and trust. And while these gaps threaten to slow down progress, the much more pressing reality is their threat to consumer loyalty.

The purpose gap: Efficiency versus enhancement

Many companies approach AI with operational efficiency as the presumptive focus. They invest in automation, data processing and cost-cutting tools. But the cost savings don’t necessarily mean lower prices for customers. After all, AI investments can be expensive. While companies put a lot of focus on efficiency, consumers see things differently. They expect AI to enhance their experiences, not just streamline backend operations. Cheaper is great, but better is, well, better.

This misalignment between customer and brand not only presents a missed opportunity but can risk backfiring. When brands fail to introduce AI features that improve the product or experience, consumers are quick to turn to competitor brands whose AI features do.

Launching an initiative without an understanding of the problem it will solve for customers can be just as costly and detrimental as not progressing at all.

The fundamental truth behind the purpose gap is that AI must solve real customer pain points, not just internal ones.

The pace gap: Roadmaps versus real time

Consumers live in a world of instant gratification. They expect innovation now, whereas brands often operate on long-term roadmaps, cautiously rolling out AI features over time. It’s the tortoise and the hare.

I have spent two decades drilling into the opportunities presented by consumer demand. Consumer expectations are always increasing, and if brands don’t introduce new features to simplify the path to purchase, they won’t be able to keep up – leading back to the issue of insecurity. Many brands worry they may be falling behind competitors, but I’d argue the real danger is falling behind rapidly changing consumer expectations.

The pace gap creates tension. If a brand launches an AI-powered feature before it’s ready, it risks alienating its audience. Forty percent of consumers believe AI-driven interactions warrant a premium price, but only if those interactions deliver real value.

For example, consumers expect a seamless shopping experience that can move from online to in-store and back again effortlessly. They aren’t interested in a brand’s omnichannel strategy; they just want it to be easy to find the perfect outfit or piece of new tech. Retailers and brands need to predict a customer’s journey and meet them where they are in each critical touchpoint. Whether the customer is asking Siri for suggestions, browsing in-store or working with a virtual stylist, AI enables brands to create experiences that were the stuff of science fiction just five years ago.

I’m confident most companies will get there, but pace is everything. The key is keeping pace with consumers in a way that feels just right.

The trust gap: Privacy and personalization

Personalization has long been a holy grail of customer experience, and this is an area where AI’s promise is unmatched. But personalization requires data, which is where trust becomes critical. Consumers want personalized experiences, but they are also protective of their data. They are willing to share in a fair value exchange only if they’re certain that their data won’t be misused.

I often say that trust is the currency of loyalty. A trustworthy brand can create an amazing experience, but without that trust, even the best tools can hit massive roadblocks. Marketers must walk a fine line: lead with transparency to build digital trust, then deliver unmatched personalized experiences. Fail on either dimension and the trust gap becomes a barrier to adoption.

Whether companies are making a car-sized investment or one that could build a space station, the key is not the amount spent, but how it is utilized.

To that end, I offer the same advice that I always come back to in conversations with leaders: start with demand. Make customer needs the center of the galaxy and ensure that everything else – investment, infrastructure, innovation – orbits around that central goal. Brands that craft thoughtful AI strategies to close the purpose, pace and trust gaps will earn lasting consumer loyalty and safeguard the ROI on their investments.

This article was first published in Forbes.