New research reveals a growing disconnect between how brands use AI for customer experience and how consumers want to experience it.
In the study by SAP Emarsys, 80 per cent of FMCG marketers said AI is essential for acquiring new customers, and 83 per cent stated that it’s critical for retention.
On the contrary, only 8 per cent of consumers want more AI-led brand interactions while 40 per cent said they want more personalised deals and offers, not simulated conversations.
“The best personalisation should feel invisible,” said Sara Richter, CMO at SAP Emarsys.
“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 — using AI to scale relevance behind the scenes while keeping the experience human.”
In the UK, FMCG marketers face a distinct challenge- 31 per cent cite internal complexity – siloed systems, fragmented tools, and disjointed marketing efforts – as the biggest barrier to improving engagement.
To address this, the SAP Emarsys report introduces the Customer Engagement Maturity (CEM) Index – a new global benchmark that helps consumer product brands assess their readiness to meet rising expectations. From data strategy to omnichannel execution, the CEM Index maps the journey into what SAP Emarsys calls the Engagement Era.
“This is what a high-CEM brand looks like in practice,” added Richter. “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 FMCG.”
The SAP Emarsys Global Consumer Products Engagement Report, launched in partnership with Deloitte, draws on insights from more than 14,000 global consumers and 750 senior marketers. It highlights the AI Engagement Paradox: while consumers rely on AI-powered experiences, trust and loyalty hinge on how that AI is deployed.
With 25 per cent of consumer product brands already operating at this level today, the report warns that many risk falling behind, unless they embrace the blend of data-driven automation and human-led storytelling that defines the "Engagement Era".
