Announcing The State of Personalization 2024

Every so often, there comes along a disruptive technology so disruptive that it comes to dominate all conversations around innovation. 

In our latest research study launched today, The State of Personalization 2024, it was loud and clear from our respondents that the technology in question was AI. 

Based on a survey of over 500 business leaders across countries and industries, The State of Personalization explores what today's consumers want from their digital experiences with brands - and how well companies are equipped to deliver on those expectations using tools like AI, customer data platforms (CDPs), and data warehouses.

AI-driven personalization is becoming table stakes

One of the pressing questions that many businesses are scrambling to answer is understanding how AI can be applied to drive precise personalization to customer engagement.

Remember when Amazon first started recommending products based on your browsing history? Or when Siri became your pocket-sized personal assistant? 

These early examples of personalization using AI are fast becoming the de facto standard, and businesses are investing significant amounts of resources to ensure they can meet the mark. An astonishing 89% of decision-makers believe AI-driven personalization will be critical to their success over the next three years. 

However, meeting personalization demands isn’t as straightforward as once hoped, especially with recent generational shifts. 85% of businesses are adjusting marketing strategies to accommodate Gen Z's elevated expectations around digital experience quality and individualization.

AI is creating a world of haves and have-nots

With so much focus on the potential output of AI, it is easy to lose sight of what it takes to get the desired results.

AI is fundamentally data-centric; you need good quality data sets in order to train AI to do its job correctly. In an environment where seemingly everyone is investing in a transformative AI strategy, businesses that don’t have the data infrastructure to utilize AI effectively are at risk of being left behind.

This year’s report found that 54% are already implementing robust data privacy controls within AI data platforms to build trusted user experiences.

The research also uncovered that combining data warehouses (used by 48% of companies) with customer data platforms (72% adoption) forms a powerful personalization engine when coupled with AI's processing capabilities.

Predictive personalization, emotional intelligence, and other key trends are transforming personalization 

As AI has enters the mainstream, this year’s report shows that businesses are becoming ever more sophisticated with their application of emerging technologies

In order to keep up with the aforementioned Gen Z consumers, 86% of business leaders expect a big shift from just reacting to actually predicting what customers want. 

In the same way that Netflix predicts what a subscriber is likely to watch next based on their viewing history, brands are now trying to stay ahead by using AI and machine learning to create experiences that are tailor-made for each person. This way, they can reach out with the right message at just the right time. AI is a game-changer in this regard, letting businesses process huge amounts of data in real-time to get the insights they need for engaging with customers dynamically.

The report also found that a surprising 82% of leaders say it’s crucial to build emotional intelligence into AI systems so they can respond to human emotions. Maybe Her isn’t as speculative a movie as we once thought.

The State of Personalization 2024 makes one thing clear – personalization powered by AI is no longer a luxury, but a strategic imperative for businesses across industries. Those that adapt by getting personalization right will delight customers and gain a crucial competitive edge.

Download the full report here to explore all the findings, real-world examples, and expert personalization insights and strategies for thriving in this new age of AI-driven experiences.