By Tilman Harmeling, Senior Expert Privacy

Retail is entering a new phase of digital maturity. AI-powered personalization, search and merchandising are accelerating like never before, promising smarter customer journeys and stronger commercial outcomes. In fact, Deloitte’s 2026 Retail Industry Global Outlook reports that 26% of retail executives have already focused on personalization through AI capabilities. It also revealed that another 35% expect to deploy personalized AI recommendations in the next year, as AI moves from pilots into the heart of omnichannel journeys, search and merchandising.

At the same time, consumers are becoming more aware of how their data is collected, shared and used. For years, data collection in retail operated largely in the background. Consent was often passive or overlooked entirely by shoppers eager to complete a purchase or browse quickly. However, that era is ending as consumers are no longer disengaged participants in the data economy.

Indeed, recent research surveying 10,000 consumers across the U.S. and Europe reveal how trust in data usage is no longer passive or assumed. A majority of 59% of consumers say they are uncomfortable with their data being used to train AI systems, not because they oppose AI itself, but because they do not feel informed about how their data is being used. At the same time, 46% now accept cookies less often, and 42% regularly read consent banners before sharing data. These trends point to rising digital literacy and heightened expectations for transparency. And, for retailers, this shift has far-reaching implications.

Consent Awareness Is Now a Customer Experience Issue

Customer experience has traditionally focused on speed, personalization and convenience. Historically, consent was treated as a legal requirement. Yet, today, consent is part of the brand experience and acts as an experiential touchpoint. When customers encounter confusing, overly technical or disruptive consent interactions, trust erodes before the shopping journey even begins. A poorly designed consent experience can introduce friction, create suspicion and undermine confidence in the brand. 

As AI-driven experiences become more prevalent, this trust dynamic is even more important. Customers may enjoy personalized recommendations or smarter search results, but those benefits lose value if shoppers are unsure how or why their data is being used. Retailers that treat consent as a human interaction rather than a compliance checkbox can strengthen customer relationships at a critical moment in the journey.

Data Quality Suffers When Trust Declines

Rising consent awareness also directly affects the quality of data retailers rely on. As passive consent declines, data sets become smaller, more fragmented and potentially less representative. This has cascading effects across analytics, personalization and AI models.

When customers opt out, limit permissions or provide incomplete data, the signal-to-noise ratio worsens. AI systems trained on partial or biased data struggle to deliver accurate insights. Attribution models lose clarity. Customer profiles become less reliable. The irony is that as retailers invest more heavily in advanced analytics and AI, the underlying data foundation may be weakening. Retailers that earn consent through clarity and build long-term relationships based on trust, which will then lead to better data outcomes.

Campaign Performance Depends on Consent Strategy

Marketing performance is another area feeling the impact of rising consent awareness. As data availability shifts, campaign effectiveness can decline if strategies are not adjusted accordingly. Lower opt-in rates can reduce audience reach. Inconsistent consent signals complicate targeting and measurement. Personalization engines may underperform when data inputs are incomplete or outdated. These challenges are especially visible in omnichannel campaigns where consistent data is essential for delivering cohesive experiences.

However, retailers that adapt can mitigate these risks. Campaigns built on high-quality, consented first-party data often outperform those reliant on volume alone. When customers trust a brand, engagement tends to be higher, messaging feels more relevant and long-term loyalty improves. Consent-aware marketing requires closer alignment between privacy, UX, data, and marketing teams. It also requires a shift in mindset from short-term optimization to long-term relationship building.

Transparency as a Major Advantage

The most forward-looking retailers are beginning to view transparency as a source of differentiation. Rather than hiding data practices behind dense legal language, they are integrating clarity into the customer experience. This includes explaining data usage in plain language, especially when AI is involved. It means giving customers meaningful choices and respecting those choices consistently across channels. It also means equipping internal teams to communicate proactively about data practices, not just comply with them.

Retailers that succeed in this transition often discover that transparency drives better outcomes across the board. Customer experience improves because interactions feel more honest and respectful. Data quality improves because consent is informed and intentional. Campaign performance improves because trust strengthens engagement. Taken together, transparency becomes the foundation for the next phase of retail growth, where AI, data and customer relationships evolve in lockstep rather than in conflict.

The Next Phase of Retail

As retail moves deeper into an AI-driven future, consent awareness will only continue to rise. Customers will expect greater visibility into how technology shapes their shopping experiences. Regulators will continue to scrutinize data practices. And competitive pressure will reward brands that build trust early rather than react later.

Retail leaders should view this moment as an opportunity to reset assumptions about data and customer relationships. The question is no longer how much data can be collected, but how responsibly it can be earned.

About author

Tilman Harmeling Senior Expert Privacy Tilman Harmeling is a data protection expert with a career focus on the business and technical complexities of privacy. He is primarily involved in data-driven projects related to consent-based marketing, like opt-in analysis and optimization and the influence of AI on consent and preference management. Tilman’s goals are to understand the ever-changing privacy landscape and find opportunities for innovation. He is a sought-after speaker on current privacy topics at events like PrivSec Global, OMR, DMEXCO, the BCG MarTech Series and Leadership Beyond Borders.