According to new research from SAP Emarsys, there is a widening gap between how consumer brands are leveraging AI and what customers actually desire from those interactions.
“The best personalisation should feel invisible. People love it when a brand just gets them, but they don’t want to feel like they’re in a chatbot loop. Brands like John Frieda and Versuni (formerly Philips Domestic Appliances) are showing how to do it right, by using AI to scale relevance behind the scenes while keeping the experience human,” said Chief Marketing Officer Sara Richter, SAP Emarsys.
The Global Consumer Products Engagement Report, developed in collaboration with Deloitte, U.S. marketers are placing increasing emphasis on artificial intelligence in their customer strategies. Most ( 89%) of fast-moving consumer goods (FMCG) marketers say AI is crucial for attracting new customers, while 86% rely on it for retaining them. However, only a small fraction of consumers — just 9% — say they want more AI-led brand interactions.
More personalisation
What consumers do want is more personalisation — but not the kind that feels robotic or impersonal. 41% say they would prefer more tailored deals and offers, rather than automated conversations.
The report also identifies internal organisational hurdles as a major roadblock for brands aiming to improve customer engagement. As many as 29% of U.S. marketers cite complexity, such as disconnected tools, siloed teams, and fragmented data systems, as their top challenge. To help navigate this, SAP Emarsys has introduced the Customer Engagement Maturity (CEM) Index, a new global benchmark that enables brands to evaluate and improve their engagement strategies.
The CEM Index outlines key competencies, from data integration to omnichannel execution, and serves as a roadmap for companies seeking to thrive in what SAP Emarsys calls the “Engagement Era.” Brands are encouraged to move beyond basic automation toward a hybrid model that blends the power of AI with human creativity and empathy.
Drawing from over 14,000 global consumers and 750 senior marketers, the SAP Emarsys report introduces what it calls the AI Engagement Paradox: although AI is powering more and more of the customer journey, consumer trust and brand loyalty still depend on how, not just the what, of AI deployment.
Currently, only 19% of brands are fully operating at this mature level of engagement. The report warns that without a shift toward meaningful, human-centered AI integration, many companies risk losing ground in an increasingly competitive and experience-driven market. To succeed in the Engagement Era, brands must blend smart automation with authentic storytelling — using technology to enhance, not replace, the human connection.