The richest insights come from zero-party data: Nicholas Kontopoulos, Twilio

In today's rapidly evolving digital economy, artificial intelligence (AI) is no longer a futuristic concept — it is fundamentally transforming how brands build trust and engage with customers. Nicholas Kontopoulos, Vice President of Marketing at Twilio, recently spoke with exchange4media about the critical role AI plays in redefining customer experience and brand responsibility.

"Personalization is an incredible opportunity," Kontopoulos said. "But it also walks a fine line between being highly relevant and being uncomfortably invasive. Brands must tread carefully, ensuring that AI-driven personalization is meaningful, valuable, and above all, respectful."

According to Twilio’s latest findings, 70% of companies globally and 75% in India are already leveraging AI to personalize marketing efforts. India, Kontopoulos noted, stands out as a global leader, with businesses aggressively integrating AI into Customer Engagement Platforms (CEPs) to drive better outcomes. "India’s government has invested heavily — over a billion dollars — to support AI adoption, catalyzing change across industries," he said.

At the core of ethical AI usage lies data — and a clear understanding of how it is collected and applied. Kontopoulos explained the important distinction between first-party and zero-party data. "Zero-party data refers to information that a customer intentionally and proactively shares with a brand," he said, citing the example of a fitness app asking users about their workout preferences and health goals. In contrast, first-party data is gathered passively through customer behavior across owned channels, such as purchase histories and website activity.

"The richest insights come from zero-party data," Kontopoulos emphasized. "When customers willingly share their aspirations and preferences, it opens the door for truly valuable, utility-driven engagement." Brands that combine both first- and zero-party data can create experiences that genuinely help customers — without overstepping boundaries of privacy or trust.

Twilio’s research shows that AI is delivering clear business benefits. Globally, 45% of companies and 49% in India report improved customer satisfaction after AI adoption. In terms of decision-making, 41% of businesses globally and 46% in India have seen improvements thanks to data-driven insights. Indian consumers are also notably receptive to AI-powered personalization, with 64% indicating they would spend more when AI enhances engagement — ranking India second globally after Hong Kong (87%) and ahead of Indonesia (55%).

Yet, Kontopoulos warned, brands must not become complacent. "There’s a growing gap between what brands think they are delivering and what customers are actually experiencing," he said. Globally, 44% of businesses cite "responding to rapidly changing customer needs" as a top challenge, a figure that climbs to 51% in India, reflecting the fast-evolving expectations of its digitally savvy population.

Kontopoulos shared examples of real-world success, pointing to a major Indian retail conglomerate that recently adopted Twilio’s Customer Data Platform (CDP) to enhance media spend efficiency and deliver more contextually relevant customer experiences. Retail, financial services, and airlines are among the leading sectors adopting AI-driven engagement strategies in India and the wider Asia-Pacific region.

Throughout the conversation, Kontopoulos championed the idea of "brand utility" — the concept of brands providing tangible value to customers. "When brands use AI to deliver real value, helping customers achieve their goals or simplifying their journeys, they move beyond transactions. They become a trusted partner," he said. "That’s when personalization feels empowering, not invasive."

Transparency remains crucial. "Real transparency goes beyond fine print," Kontopoulos stressed. "It’s about clearly communicating how AI is being used, what data is being collected, and ensuring customers can switch to human interaction if they wish." Brands should openly acknowledge when a customer is interacting with an AI-powered agent, he argued, fostering comfort and trust.

Observing broader consumer trends, Kontopoulos noted how quickly people adapt to new technology. "Look at how fast the world embraced Pokémon Go. People willingly shared their location data because the value exchange was clear and enjoyable," he said. "Similarly, if brands deliver genuine value through AI, consumer adoption will follow."

He concluded with a critical piece of advice for brands embracing AI. "Technology alone isn’t the solution," Kontopoulos said. "True transformation requires aligning people, processes, and technology — and starting with a deep understanding of the customer. Otherwise, you're just treating symptoms, not solving real problems."

As AI reshapes customer trust and experience across industries, Kontopoulos’ insights are a timely reminder: success will go to brands that prioritize transparency, respect, and genuine value in every customer interaction.