A new report from Adobe has revealed a significant gap between the adoption of generative AI by brands and its use by employees in Australia and New Zealand (A/NZ). The figures comes as the tech vendor's report found one-quarter of marketing and customer experience budgets are being cut, with a further 30% expecting cuts in the next 12 months.

The study found only three in 10 A/NZ brands have embraced generative AI, while nearly seven in 10 employees claim to have used it in their marketing campaigns. This comes despite the fact 68% of A/NZ employees reported having used generative AI in marketing and customer experience campaigns. Top elements used include large language models or conversational AI(30%), using text-to-image generators (24%), or a combination of both (17%). By contrast, only 31% of respondents said the company they work for currently uses generative AI tools.  

However, the study also revealed some omissions around data safety and ethical implications of AI use. Almost half (49%) of A/NZ brands do not see data safety as a crucial factor in attracting and retaining customers. This is in stark contrast to consumer attitudes, with 89% stating they would decrease spending with brands that fail to keep their data safe, including 50% who would refuse to spend at all. Nearly one in three (31%) of concerns are concerned about the ethic implications of brands using generative AI.

The most common consumer concern about brands' use of generative AI was ethical implications, with 31% expressing worry. Furthermore, 38% of consumers said they are more likely to stay loyal to brands they trust, and 29% are more likely to spend more with the brands they trust.

"Consumers are alert to the importance of responsible generative AI usage, and organisations must be more vigilant than ever to maintain trust. Employees are bringing AI tools into the workplace faster than official roll-outs, raising the real possibility of unchecked usage and shadow AI solutions," said Vice President and Managing Director, Adobe Australia and New Zealand, Katrina Troughton.

"This highlights the need for strong ethical and legal guardrails to ensure brands meet their obligations and customer expectations. With many brands still planning their adoption pathway, having in-built safeguards and controls within existing technologies can help bridge any governance gap."

Troughton also emphasised the importance of brand trust in consumer spending decisions and loyalty.

"As brand trust plays an even greater role in consumer spending decisions and loyalty, meeting emerging preferences is crucial. While data security issues continue to be consumers’ top dealbreaker when it comes to a sale, equitable access and sustainability obligations are not far behind," she said.

The research was derived from an online survey of more than 16,113 consumers and 4,250 marketing and customer experience professionals globally, including 505 consumer respondents and 142 marketing and customer experience professionals from A/NZ.