Fanning Personalization: How AI Is Changing Marketing

Almost all businesses are ramping up their personalization. And many are using artificial intelligence/machine learning (AI/ML) to do it, judging by The State of Personalization, a study released Tuesday by Twilio. 

Of the decision makers surveyed, 89% believe that personalization will be invaluable over the next three years. In addition, 73% agree AI adoption will fundamentally change personalization and marketing. 

By 2025, 91% of businesses expect to be using AI at least weekly and 59% daily. Indeed, they will view AI as indispensable as email, the study says.

That does not mean they can simply use AI and machine learning at will. 

For instance, 54% say they are implementing a data platform with robust privacy controls. And 55% are creating ethical AI/ML guidelines and training.



Moreover, 82% argue that it is important to embed emotional intelligence into AI systems. This may especially key when serving the particular needs of Gen Z consumers, as 85% are adjust their marketing strategy to do. 

As part of this, 80% plan to move beyond basic engagement and conversion rates when assessing the impact personalization — i.e., customer lifetime value, emotional engagement and customer experiences that stand out. 

This could be key, given that 86% foresee a big shift from reactive to predictive personalization. 

Also, 55% claim that brands will have to increase their AI/ML use for predictive analytics to content with third-party cookie deprecation. Another issue is that 61% are worried about inaccurate data compromising the use of AI/ML for personalization. 

"Personalization is table stakes in the world of marketing, says Robin Grochol, vice president of product management at Twilio. ”Today's consumer not only expects brands to understand them, but they want brands to anticipate their needs and AI is making that a reality."

Twilio surveyed 521 senior business leaders from April 8 to May 5, 2024, working with Method Research and RepData. All respondents were from companies with 500 or more employees.


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