Artificial Intelligence (AI) is fundamentally reshaping the marketing landscape in India and globally. From personalised product recommendations to automated content delivery, AI has become the invisible engine driving consumer engagement. According to a 2024 report by Deloitte India, over 67% of Indian marketers are using AI in performance marketing to optimise ad spends and campaign results. But with great power comes great scrutiny.
As consumers become more aware of the technologies influencing their decisions, a shift is underway. Today’s digital-savvy audience doesn’t just want effective ads—they want to understand how and why those ads appear. There’s a rising demand for greater transparency in AI-powered marketing tactics, especially when algorithms determine what users see, when they see it, and how it’s personalised. In fact, a recent Adobe survey found that 74% of Indian consumers want more clarity on how brands use their personal data in AI marketing models.
The intersection of brand management and ethical AI deployment is now a top concern for companies that value trust and reputation. Consumers are no longer passive recipients of marketing messages—they are active participants who value authenticity and accountability. AI’s role in content marketing, visual brand storytelling, and corporate communication must now adhere to principles of fairness, openness, and consent.
This blog dives deep into why consumers are pushing for more AI transparency, how brands are responding, and what this means for the future of marketing and corporate communication in a rapidly evolving digital economy.
1. AI in Marketing is Ubiquitous, but often unseen:
AI-driven tools power everything from chatbots and email targeting to predictive product suggestions and real-time bidding in ad exchanges. While this boosts performance marketing efficiency, the opacity of these processes often leaves users unaware that machines are influencing their choices. This lack of visibility can erode trust, especially when consumers feel manipulated rather than understood.
2. Data Privacy Concerns are Fuelling the Demand:
The growing sophistication of AI also means more extensive use of user data—browsing history, preferences, purchase behaviour, even biometric signals. A 2025 EY India study highlights that 62% of consumers are unsure about how their data is used in marketing models, prompting stronger calls for transparency. People are no longer comfortable with vague “terms and conditions”—they want clarity in marketing and corporate communication.
3. Personalisation without Consent is Losing Favour:
While hyper-personalised content enhances engagement, it becomes problematic when personalization feels intrusive. For example, AI that auto-generates content based on voice or sentiment analysis might feel invasive if the user didn’t explicitly opt-in. Clear consent protocols and communication can shift this narrative from “manipulation” to “customisation.”
4. The Role of Brand Management is Being Redefined:
Traditionally, brand management focused on visuals, messaging, and consumer touchpoints. But now, it also involves managing how ethically and transparently AI is used. Brands like Tata Cliq and Nykaa have begun publicly disclosing their AI marketing practices, turning transparency into a pillar of their identity. This shift is reshaping brand trust and long-term consumer loyalty.
5. Consumers Want Explainable AI in Marketing:
The concept of Explainable AI (XAI)—where algorithms provide rationale for their decisions—is gaining traction in marketing. According to a 2024 PwC India report, 53% of customers are more likely to engage with a brand if its AI tools offer clear explanations. Whether it’s why a product was recommended or how an email subject line was generated, people value explanations that make AI less of a “black box.”
6. Content Marketing Must Now Be Transparent and Human-Centric:
AI is being used to generate everything from blogs and product descriptions to videos and visual creatives. However, when AI-generated content is not disclosed, it can undermine authenticity. Transparent content labelling—like “AI-assisted copy” or “machine-generated review analysis”—can actually improve trust and improve results in content marketing strategies.
7. Visual Brand Storytelling Needs an Ethical Makeover:
AI tools like DALL·E or Midjourney are now routinely used in visual brand storytelling. But if consumers discover manipulated visuals or synthetic models presented as real, the backlash can be severe. Authenticity is the new currency, and brands must clearly communicate how visuals are created and whether AI was involved.
8. AI Bias and Representation in Ads is Under the Microscope:
AI models are only as unbiased as the data they’re trained on. In India’s diverse population, bias in ad targeting or representation can cause significant reputational damage. For instance, if an AI platform shows financial service ads only to urban men, it risks alienating large consumer segments. Transparent AI usage policies help pre-empt such scenarios.
9. Performance Marketing Metrics Must Be Shared Responsibly:
AI enables marketers to test and optimize campaigns at scale—but should those results be hidden or selectively presented? As stakeholders (and even consumers) grow more analytical, they want real performance indicators: What worked, what failed, and how AI improved ROI. Transparent performance marketing metrics, if shared in simple formats, can increase brand credibility.
10. Government Regulations Are Catching Up:
In 2025, India’s Digital Personal Data Protection Act has set the foundation for how brands can ethically use consumer data. With penalties for non-compliance, marketers must now prioritize transparent AI strategies not just as a brand choice, but as a legal requirement. Proactive compliance isn’t just about ticking boxes—it’s about building deeper consumer trust.
Key Takeaways:
1.Consumers demand clarity on how AI personalizes marketing messages and uses their data.
2.Transparent AI use enhances brand trust, especially in content and visual storytelling strategies.
3.Ethical AI in performance marketing is now a legal and reputational imperative for Indian brands.
The era of opaque algorithms and hidden data practices in marketing is coming to a close. As AI becomes deeply embedded in every aspect of consumer engagement—from product discovery to post-purchase support—the need for transparency isn’t just a trend; it’s a transformation. Today’s consumers expect brands to not only deliver relevance but to do so responsibly. They want to know how AI influences decisions, whether their data is used ethically, and if they have a say in the process.
For Indian businesses navigating this AI-driven future, transparency must become part of the core strategy—not just a checkbox in compliance. Whether it’s through content marketing that clarifies how recommendations are generated, or visual brand storytelling that openly discloses AI-generated imagery, honesty is becoming a competitive advantage.
Moreover, this shift aligns perfectly with broader goals in brand management and marketing and corporate communication. Transparency fosters trust, improves engagement, and ultimately drives long-term loyalty. When consumers feel respected and informed, they’re far more likely to become advocates, not just buyers.
As regulations evolve and public awareness increases, brands that proactively adopt explainable, ethical AI in performance marketing will stand out. The message is clear: in a world where machines help sell to humans, the human values of honesty and empathy must still lead the way.
