Happy Friday! ‘This week in CX’ brings you the latest roundup of industry news.
This week, we’ve been looking at whats going on with AI, what drives businesses to change, and are there any innovative ideas left?
We’re also discussing new updates from Estée Lauder, Temu, and more!
Key news
- UK tech founders were pleased to learn in the budget that the so-called entrepreneur’s relief isn’t going anywhere. The tax break, officially known as business asset disposal relief, allows entrepreneurs to reduce their capital gains tax when they sell certain business assets or shares. Many were expecting the entrepreneur’s relief to be tweaked, and over a thousand UK founders signed an open letter to stop the government from scrapping it. However, not everyone in the tech industry thought it was a positive budget, with some hitting out at the employer national insurance rise and other tax rises.
- The European Commission is preparing to launch an investigation into Chinese e-commerce giant Temu amid concerns that the company is failing to crack down on sales of illegal products, the Financial Times reports. The probe, which could be launched in the coming days, is likely to fall under the EU’s new Digital Services Act, two EU officials reportedly told the FT. Temu could be fined up to 6% of its global annual revenue under the legislation. Consumer groups have raised concerns that toys for sale on Temu do not comply with EU safety and consumer regulations.
- Just a day after announcing its new CEO, The Estée Lauder Companies has pulled its guidance for the year, citing the leadership change and softening demand in China. The 78-year-old beauty firm, which counts Clinique and MAC among its brands, also cut its dividend, which sent shares diving on Thursday. Newly appointed chief Stéphane de La Faverie will be charged with turning things around once he takes over in January. Estée Lauder isn’t alone its struggles: The wider beauty market is showing signs of stress, with L’Oréal and Coty both recently announcing less-than-stellar figures.
CXM news stories
Here’s the full news stories that CXM have reported on in the past week. Learn all about the latest research about employee experience, marketing fatigue and how to bring change and evolve.
Cisco survey shows strong relationship between privacy awareness and trust in AI
Cisco released its 2024 Consumer Privacy Survey, an annual global review of consumer perception and behavior regarding data privacy. This year’s survey highlights the critical role of privacy rights awareness in fostering consumer trust and confidence in emerging technologies like Artificial Intelligence (AI).
The survey says consumer awareness is on the rise. This year, 53% report being aware of their national privacy laws, a 17-percentage point increase compared to 2019. Informed consumers are also much more likely to feel their data is protected (81%) compared to those who are unaware (44%).
It’s revealed that 63% believe AI can be useful in improving their lives. The use of Generative AI (GenAI) has nearly doubled, with 23% of respondents using it regularly, up from 12% last year. However, 44% of surveyed consumers remain unaware of GenAI. While users say they are gaining significant value from GenAI supporting content creation work, they are concerned about safety, potential misuse and societal risks.
Privacy and data protection has evolved from relative obscurity to a customer requirement with more than 75% of consumers saying they won’t purchase from an organisation they don’t trust with their data. This translates into concrete actions as more consumers are becoming “Privacy Active,” particularly younger ones.
In addition, consumers are leveraging security tools to safeguard their data. In the 12 months prior to the survey, 67% reviewed or updated their privacy settings in apps or platforms. 68% say they use multi-factor authentication, and 61% use a password manager to protect and keep track of their passwords.