A new research reveals a growing gap between how brands are implementing AI in customer experience and how consumers prefer to engage with it, according to SAP Emarsys.
Although 82 per cent of Consumer Products marketers view AI as vital for customer acquisition and 74 percent for retaining them, only 7 per cent of consumers report wanting increased AI-driven brand interactions. Rather, 38 per cent prefer more personalised deals and offers over simulated conversations.
“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 PUMA, John Frieda and Versuni (formerly Philips Domestic Appliances) are showing us how to do it right — using AI to scale relevance behind the scenes while keeping the experience human,” said Sara Richter, CMO at SAP Emarsys.
According to the CEM Index, Australian brand marketers are particularly affected by complexity. In the Consumer Products sector in Australia, 37 per cent cite disconnected systems, fragmented tools, and uncoordinated marketing efforts as the top challenge to better engagement.
To address this, SAP Emarsys introduced the CEM Index, a global benchmark assessing brand readiness across areas like data strategy and omnichannel execution. The index is designed to help organisations transition into what the company calls the “Engagement Era.”
Global home appliances business Versuni serves as a strong example. Through the integration of SAP Emarsys with SAP ERP and customer identity foundation, the company connects consumer data across channels, delivering scalable personalisation and a seamless mobile and B2B channel experience.
“This is what a high-CEM brand looks like in practice. It’s not just about having AI — it’s about orchestrating the right data, tools, and teams to deliver relevance without complexity. That’s the new gold standard in Consumer Products,” said Richter.
Launched in collaboration with Deloitte, the SAP Emarsys Global Consumer Products Engagement Report includes insights from over 14,000 global consumers and 750 senior marketers.
It identifies the AI Engagement Paradox: consumers interact with AI-powered experiences, but their trust and loyalty depend on how effectively and responsibly that AI is used.
Currently, only 15 per cent of brands meet the standards defined by the CEM Index. The report warns that without combining data-driven automation with human-led storytelling, many risk falling behind in the new era of customer engagement.