While AI-powered personalization is boosting performance for Philippine businesses, a significant trust gap threatens to undermine its impact.
According to Twilio’s newly released 2025 State of Customer Engagement Report, Filipino consumers lead the Asia Pacific region in demanding transparency, with 68% wanting to know when they are interacting with AI—the highest across surveyed markets.
The report, based on insights from over 7,600 global consumers and 600+ business leaders across 18 countries, reveals that 97% of Philippine companies say AI is already improving customer-facing operations, especially in support, marketing, and real-time engagement. Yet, 63% of Filipino consumers don’t believe brands use their data in their best interest, underscoring a critical disconnect.
“Filipino consumers have embraced AI-powered experiences, but engagement must feel natural and be grounded in trust,” said Nicholas Kontopoulos, Twilio’s Asia Pacific & Japan VP of Marketing. “Technology alone isn’t enough—transparency is the new competitive advantage.”
Key findings from Twilio’s 2025 State of Customer Engagement Report:
Personalization drives revenue—but not trust.
While 53% of brands use AI to personalize experiences, only 20% of Filipino consumers “absolutely” trust brands with their data.
> 50% of brands using AI for personalization report increased customer spend, yet 57% still face security concerns and 47% struggle with data accuracy.
Consumers reward relevance—and punish poor experiences.
A striking 85% of Filipinos abandon purchases when brand interactions fall short. On the other hand, 99% are more likely to buy, and 71% are willing to spend more when engagement is real-time and personalized. However, only 45% of businesses are currently able to meet this level of execution.
Transparency and control are key to loyalty.
Filipino consumers want control over how their data is used and prefer to choose communication channels—including social media, email, and SMS. They also want AI experiences to feel more human; 80% say human-like interactions are important, even when powered by AI.
Smart CX investments are closing the gap.
To future-proof their engagement strategies, 93% of local businesses plan to build custom CX tools, and 67% are looking to adopt Rich Communication Services (RCS) to enable richer customer interactions.
In today’s AI-first economy, Filipino consumers are setting a regional benchmark: they expect transparency, control, and authenticity in every brand interaction. For businesses, the takeaway is clear—AI needs to be paired with human values to build lasting trust and customer loyalty.
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