As featured on BusinessMirror: Building AI trust starts with clear governance
Artificial intelligence (AI) is the ultimate double agent — on one hand, it gives retailers the power to craft immersive, hyperpersonalized experiences that captivate customers and streamline operations. On the other hand, smarter tools empower consumers to hunt for better deals, compare products instantly and align purchases with their personal values — all with just a few clicks. This duality raises the stakes for trust, transparency, and ethical use. But this duality is evolving. It’s no longer just human vs. machine — it’s agent vs. agent. Soon, a retailer’s pricing and recommendation AI may negotiate directly with a customer’s personal shopping AI. In this new economy, which brand’s AI will the consumer’s agent trust? Governance is no longer just about protecting data; it’s about programming your agents to be transparent, fair, and trustworthy negotiators. Building AI trust starts with clear governance.
When asked about the most pressing concern of AI implementation, 56 percent of CEOs surveyed for the KPMG 2025 Consumer & Retail CEO Outlook identified ethical challenges as significant. As AI becomes more embedded in customer-facing applications such as personalization, pricing, and recommendations, navigating issues such as bias, transparency, and consumer trust is becoming increasingly complex. Retailers need to ask themselves: How do we balance deep personalization with earning and maintaining customer trust?
Consumer trust: opportunity and risk
Recent research by KPMG and the University of Melbourne, Australia shows that more than half of consumers (46 percent) remain wary about trusting AI. Many lack a clear understanding of how AI works — 61 percent have no AI training, and 48 percent report limited knowledge. Consumers are increasingly using AI-powered tools, but may not fully comprehend their implications. This can lead to autonomous AI agents making decisions that are not always in the consumer’s best interests. Agents present both opportunities for engagement and risks of misunderstanding or mistrust if AI-driven experiences are not transparent or user-friendly.
From responsibility to opportunity: winning on trust
For years, retailers have treated data governance as a defensive necessity, navigating regulations like GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act) to avoid risk. The rise of AI demands a radical shift in this mindset. Trust is no longer a compliance check-box; it is a core product feature. In an era where a customer's personal AI agent will choose which brands to interact with, proactive and transparent governance becomes a powerful strategic differentiator
The new responsibility isn’t just to protect data, but to build systems that are demonstrably fair and explainable, earning the confidence of both human customers and their digital counterparts. Retailers must focus on maintaining data safety and privacy, and ensuring that AI meets appropriate ethical standards. This includes proactively educating consumers about AI-driven
features and benefits, supporting AI literacy, and providing accessible information to build confidence and loyalty.
In the Philippine Context
In the Philippines, AI is creating opportunities as the digital economy continues to expand. The country’s digital economy has reached US$36 billion in gross merchandise value in 2025, with e-commerce accounting for more than 60 percent of total value.
As AI becomes more embedded in how consumers discover, evaluate, and purchase products, expectations around transparency, fairness, and data use are rising in parallel. This makes trust a critical factor in sustaining adoption, not just a by-product of it. As a result, organizations need to move beyond opportunistic AI adoption toward a more structured, governance-led approach.
Ultimately, AI is reshaping retail not just in how decisions are made, but in how trust is built across the customer journey. As AI systems increasingly act and interact on behalf of both businesses and consumers, governance becomes the foundation of value creation.
The real differentiator is no longer AI adoption, but how well organizations govern, scale, and sustain trust in it over time. These are the kinds of conversations that will continue at the MAP x KPMG Technology Summit on 30 June 2026 at Shangri-La The Fort, where leaders from across sectors will come together to explore how technology is reshaping business, the economy, and the future of work, and what it takes to build trust in a rapidly evolving digital landscape.
This article draws on insights from the KPMG Thought Leadership publication “AI in retail: Global lessons from strategy to storefront”.
© 2026 R.G. Manabat & Co., a Philippine partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more information, you may reach out through ph-kpmgmla@kpmg.com, social media or visit www.home.kpmg/ph.
This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent KPMG International or R.G. Manabat & Co.