As AI technology advances, it will increasingly make it easier for companies to personalize products, content and promotions to each and every customer. This kind of deeply trailored personalization makes customers feel like individuals with unique wants, needs, and tastes and not a persona.
That should be good news for consumers, as 2024 Publicis Sapient research showed that they expect personalization in their digital commerce experiences. Over two-thirds (67 percent) of consumers want personalized interactions while shopping, while 71 percent want customized recommendations when traveling and dining out.
While consumers are concerned about the negative impact of artificial intelligence, from job loss (42 percent) to misinformation (53 percent), 27 percent of those who are familiar with and have used generative AI tools are excited about its ability to generate personalized product recommendations for them, according to a Publicis Sapient survey.
It’s up to e-commerce leaders to perfect their technology to draw consumers in, rather than push them away. In 2025, the potential for increased conversion rates, basket sizes and consumer engagement online through AI will outweigh the risks of getting it wrong, as long as retailers have the right digital expertise and quality assurance practices in place.