At the JournalismAI Festival 2025, Liz Lohn from the Financial Times discussed the challenge of AI disclosure eroding trust in premium brands like FT, leading to subscription cancellations.

The FT’s cautious approach to AI disclosure sets a precedent for companies facing similar challenges, balancing transparency with maintaining trust in content quality and engagement.

A recent study found that AI disclosure can negatively impact user trust, leading to legitimacy concerns and erosion of trust, especially when AI usage is exposed rather than self-disclosed.

Businesses like Zendesk and the BBC are prioritizing transparency in AI interactions, aiming to build customer trust through clear disclosure of AI involvement in various processes.

The British Standards Institute has established a common standard for organizations to ensure ethical and transparent AI development, focusing on managing risks like bias and lack of transparency to build trust in AI applications.

Read more at Yahoo Finance: Could AI transparency backfire for businesses?