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Articles October 31, 2025

2025 Consumer Survey: Solving the Personalization Paradox

CapTech
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CapTech

CapTech

Methodology

To understand shifting consumer attitudes toward AI and brand loyalty, CapTech conducted a survey in August 2025 with 447 respondents across the U.S. Since 2020, CapTech has conducted annual consumer surveys, and the results document a clear evolution in the public’s sentiment toward AI, from early curiosity and awareness to practical adoption and now a mainstream integration into consumers’ daily lives. The 2025 study explored five key areas: AI awareness, perceptions, responsible use, exposure in consumer interactions, and the connection between personalization and loyalty. This approach revealed the drivers of trust, privacy concerns, and ethical considerations shaping consumer behavior in a rapidly evolving market.

The Personalization Paradox

CapTech’s new nationwide consumer research reveals a central paradox at the heart of modern brand-consumer relationships: Consumers want personalized interactions with brands, but they are reluctant to share their personal data. The root of this tension is distrust. The good news is that trust and brand loyalty can be engineered. 

Consumers want brands to “get them,” by anticipating their needs, simplifying decisions, and offering relevant value. In fact, we found that consumers are 40% more likely to purchase from brands that tailor experiences to their needs. 

On the other hand, consumers also want control, privacy, and security. They’re skeptical of how their data is used, and they’re increasingly aware of the ethical implications of AI-driven personalization.

The key to moving consumers from distrust to brand loyalty is transparent value exchange. When consumers understand what they’re giving, why it matters to them, and what they’re getting in return, trust becomes a competitive advantage.

Meet Consumers Where They Are

61% of respondents reported increased use of AI in the past year. 48% of consumers report using AI at least weekly for one personal task

AI Enables Personalization

With advances in AI, brands are now able to provide scalable, meaningful, and real-time personalization, enabling companies to tailor experiences, content, and services in the moment based on consumer behavior and preferences. This real-time relevance is a key driver of brand loyalty, making AI the most critical lens through which to understand and engage today’s consumers. Consumers recognize it, too. Eighty-two percent of consumers see some opportunities for AI innovation across industries, and a majority of people recognize when AI has been integrated into a digital experience.

AI is now clearly embedded in everyday life. Consumers are open to AI, but they want it to feel helpful, not overwhelming. For example, consumers prefer incremental improvements like faster answers or better recommendations over sweeping changes. The survey also revealed a large persuadable swing audience, with 46% of people feeling neutral toward AI.

Four Behavioral Segments of Consumers

Surprisingly, consumer engagement with emerging technologies is not dependent on age. Our insights revealed that there was no correlation between AI usage and demographics like age and employment status. 

Additionally, we found no correlation between AI for personal use versus work use. In fact, less than 20% of AI use is for work purposes. 

If not age or occupation, what indicates a user’s adoption of AI? We found that the key driver of AI adoption is a consumer’s core values, beliefs, and concerns about technology. People who say they understand how AI is using their data and trust AI are twice as likely to be frequent AI users. 

CapTech identified four distinct behavioral segments of consumers. In doing so, our insights revealed that the way to build consumer trust and brand loyalty isn’t one-size-fits-all.

Consumers in Each Behavioral Segment

Committed Adopters are highly familiar with emerging tech and frequent AI users. They’re confident, optimistic, and see AI as a tool for productivity and personalization. They use AI daily or nearly daily for tasks like content generation, productivity, and research. They expect predictive, context-aware personalization and value control over customization.

Engaged Skeptics use AI occasionally for specific tasks like customer service or basic automation, but they remain guarded. While nearly half express positive sentiment toward AI, they’re concerned about privacy, data misuse, and corporate motives. They need proof points, control, and clear explanations to build trust.

Curious Explorers are open to AI and actively experiment with it. They’re ethically aware and want to understand how AI works before fully embracing it. They use AI weekly or several times a week for learning, research, and experimentation. They’re intrigued by tools like ChatGPT and want reassurance through transparency and education.

Cautious Observers rarely use AI, if at all. When they do, it’s often passive, like AI-generated recommendations. They are skeptical, privacy- conscious, and prefer simplicity. They prefer human alternatives and need clear, simple explanations to feel safe.

Want to dig in more? Read the full 2025 Consumer Survey: Solving the Personalization Paradox

Read Full Report

Brian Bischoff

Principal, CTO

Brian leads our business strategy for our practice areas and is a thought leader in digital strategy. He provides an objective perspective through the strategic analysis of current technology trends and designs and builds great experiences for our clients.

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Bree Basham

Bree Basham

Principal, Go-to-Market & Growth Strategy

As Principal of CapTech’s Go-to-Market & Growth Strategy, Bree Basham leads our efforts to shape how we bring services, solutions, and stories to market—accelerating growth and deepening client impact. Drawing on a career that spans strategy, customer experience, and marketing, Bree brings a rare blend of creative vision and strategic discipline to CapTech’s growth initiatives.

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