Stitch Fix found that providing context for its AI suggestions, especially for items outside a user's comfort zone, acts as an "amplifier." This transparency builds customer trust in the algorithm and leads to stronger, more valuable feedback signals, which in turn improves future personalization.
The need for explicit user transparency is most critical for nondeterministic systems like LLMs, where even creators don't always know why an output was generated. Unlike a simple rules engine with predictable outcomes, AI's "black box" nature requires giving users more context to build trust.
AI tools that provide directives without underlying context—"AI without the Why"—are counterproductive. An intent signal telling sales to target a company without explaining the reason (e.g., what they researched) leads to generic outreach, wasted effort, and ultimately, distrust in the technology.
To trust an agentic AI, users need to see its work, just as a manager would with a new intern. Design patterns like "stream of thought" (showing the AI reasoning) or "planning mode" (presenting an action plan before executing) make the AI's logic legible and give users a chance to intervene, building crucial trust.
Moonshot AI overcomes customer skepticism in its AI recommendations by focusing on quantifiable outcomes. Instead of explaining the technology, they demonstrate value by showing clients the direct increase in revenue from the AI's optimizations. Tangible financial results become the ultimate trust-builder.
For enterprise AI adoption, focus on pragmatism over novelty. Customers' primary concerns are trust and privacy (ensuring no IP leakage) and contextual relevance (the AI must understand their specific business and products), all delivered within their existing workflow.
Deciding whether to disclose AI use in customer interactions should be guided by context and user expectations. For simple, transactional queries, users prioritize speed and accuracy over human contact. However, in emotionally complex situations, failing to provide an expected human connection can damage the relationship.
The key to balancing personalization and privacy is leveraging behavioral data consumers knowingly provide. Focus on enhancing their experience with this explicit information, rather than digging for implicit details they haven't consented to share. This builds trust and encourages them to share more, creating a virtuous cycle.
Stitch Fix's first-party data strategy succeeds because it creates a direct value exchange. When a customer provides feedback (e.g., pants are too long), they see a tangible improvement in their next delivery. This immediate reward system builds trust and turns data collection into a positive feedback loop for the customer.
Users distrust "talk to your data" tools they don't understand. Stripe's Sigma product overcomes this by generating a natural language explanation alongside every answer. It details assumptions made, like the specific dates used for "Black Friday," allowing non-technical users to verify the logic.
Unlike many AI tools that hide the model's reasoning, Spiral displays it by default. This intentional design choice frames the AI as a "writing partner," helping users understand its perspective, spot misunderstandings, and collaborate more effectively, which builds trust in the process.