Security News > 2023 > May > Consumer skepticism is the biggest barrier to AI-driven personalization

62% of business leaders cite customer retention as a top benefit of personalization, while nearly 60% say personalization is an effective strategy for acquiring new customers.

To power even more sophisticated real-time customer experiences, the vast majority of businesses are turning to AI to harness high volumes of real-time data and power their personalization efforts.

It's a real challenge: half of companies report that getting accurate data for personalization is a struggle, an increase of ten percentage points compared to 2022, and 31% of businesses cite poor quality data as a major obstacle in leveraging AI. Meanwhile, accuracy, speed of real-time data, and customer retention or repeat purchases were the top metrics of successful AI-driven personalization.

To improve AI results and personalization overall, companies need to invest in data quality, leveraging effective, real-time data management tools, and continuing to increase their use of first-party data.

Gen Z is an especially welcoming demographic for brands, as they are both more influenced by personalization and more willing to embrace AI. In fact, a third of Gen Z consumers already expect AI to be used in their experiences with brands.

With consumer comfort levels lifted by AI that is thoughtfully and responsibility implemented, and informed by high quality data, brands will be able to create a deeper connection that translates into increased spending and brand loyalty.

News URL

https://www.helpnetsecurity.com/2023/05/08/ai-driven-personalization-importance/