Consumers Warm to AI Personalization Despite Privacy Concerns

Personalizing email newsletters and other forms of communication can be an effective booster for marketing engagement, and many advertising agencies are trying to use AI because of the fact that this is the sort of thing that could potentially end up making their personalization more detailed. Consumers have generally felt negatively about overt personalization, but it seems that the tide is turning with an increasing number of them willing to give it a chance.

Research conducted by CDP has revealed that 81% of consumers are now willing to use AI to improve their personalization. This includes things like getting personalized search results based on their history, and targeted ads that pertain to niches they are interested in with all things having been considered and taken into account. With all of that having been said and now out of the way, it is important to note that as AI becomes more commonplace in the world, people will get used to it and realize that it is not an evil entity that wants to harm them.

In spite of the fact that this is the case, privacy is still of utmost importance to users. They might be more willing to go for personalization, but the anonymization of data continues to be a priority for them. With 54% of consumers enjoying personalization in entertainment, 51% preferring it while shopping, 48% wanting it when searching for healthcare and 44% feeling positive about AI personalization in advertising, ensuring privacy has become more crucial than ever. There are just too many opportunities here for companies to miss the mark, so there is chance that an equilibrium would be reached that might satisfy all concerned parties.

However, AI might not be a good fit in every industry. Customers generally don’t like talking to a chatbot if they are looking for customer service. They want to know they are talking to a human, with only 39% of consumers feeling like AI was having a positive impact on their customer experience. That suggests that AI is not a one size fits all solution, and that companies need to be careful not to saturate the market with it in the hopes that it would stimulate growth.

If implemented properly, AI based personalization can create smoother customer journeys, improve ad engagement and provide users with a better experience as well. There is still a lot of work that needs to be done before it is perfected, but now that the needle is moving in AI’s favor we might see an explosion in its usage across several industries with entertainment companies leading that charge due to the popularity it enjoys in their niche.
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