# Major Brands Are Investing in Generative AI for Digital Commerce. They Need to Prioritize Data Transparency to Build Consumer Trust.

By Jon Reily · Published 2024-04-05 · Updated 2026-06-09 · Software & Technology on MarketScale
Canonical: https://www.marketscale.com/industries/software-and-technology/generative-ai-for-digital-commerce-customer-data-transparency

> In the rapidly evolving world of digital commerce, how can businesses harness the power of generative AI without crossing the ethical line of consumer privacy? Making best use of generative AI in digital commerce is proving a more difficult balancing act than the initial hype around tools like ChatGPT may have signaled. A…

## Key points

- Generative AI adoption in digital commerce is accelerating among major brands, but ethical deployment remains a challenge.
- Consumer trust hinges on data transparency — brands must be clear about how AI uses personal data.
- The initial hype around tools like ChatGPT has given way to a more complex reality requiring careful strategy and governance.

Block Field

In the rapidly evolving world of digital commerce, how can businesses harness the power of generative AI without crossing the ethical line of consumer privacy? Making best use of generative AI in digital commerce is proving a more difficult balancing act than the initial hype around tools like ChatGPT may have signaled.

A recent [study](https://www.salesforce.com/news/stories/ai-in-retail-statistics/) by the Retail AI Council and Salesforce, involving over 1,300 global retailers, [highlighted](https://diginomica.com/retailers-excited-about-gen-ai-retailers-dont-have-data-foundations-place-gen-ai-salesforce-study) that there’s both enthusiasm for and major hurdles in front of adopting generative AI for digital commerce applications within the retail sector. Despite facing significant data management challenges—such as accessibility, integration, bias, hallucinations, and toxicity—a strong majority (81%) of retailers maintain a dedicated AI budget, with generative AI poised to significantly impact sales, margins, and operational efficiencies by 2029. Even with that, though, only 30% of these retailers are implementing generative AI strategies to enhance customer and employee experiences, and reflecting persisting consumer privacy concerns in the industry, only 17% are achieving a comprehensive customer view.

[Jon Reily](https://www.linkedin.com/in/jonreily), a top [omnichannel retail expert](https://marketscale.com/industries/retail/retail-revolution-social-commerce-is-no-fad-its-the-future/) and strategist, and the Senior Vice President of Commerce and Loyalty at Bounteous, weighed in on this crucial debate of the best practices for deploying generative AI for digital commerce applications, highlighting the fine balance between personalization and privacy.

“This level of personalization is fantastic for brands, it’s like having a crystal ball that predicts market trends, but at an ethical standpoint, it’s like walking a tightrope over a privacy pit and one that nobody wants to fall into,” Reily said.

*Article written by Daniel Litwin.*

Tags: Bounteous, ChatGPT, digital commerce, generative AI, Jon Reily, retail

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