3 min. reading

Personalisation in Ecommerce: How AI and Machine Learning Are Shaping The Future

Twilio and Segment's State of Personalisation report provides an update on the relationship between consumer expectations and business capabilities. It explores what consumers expect from brands in their digital interactions, and analyses whether businesses are equipped to deliver personalised experiences.

Personalisation in Ecommerce: How AI and Machine Learning Are Shaping The Future
Source: Depositphotos

As the report states: “This year, we decided to change course to unravel the profound impact that new technologies such as artificial intelligence and machine learning are having on the market.”

Personalisation is more important than ever to business growth. In fact, 89% of decision makers believe that personalisation will be invaluable to the success of their business over the next three years.

The impact of AI on personalisation

Artificial intelligence is transforming personalisation and marketing strategies. In fact, 73% of business leaders agree that the adoption of AI will have a major impact on personalisation. AI enables the processing of massive amounts of data in real time, leading to predictive insights and personalised customer engagement. This shift will take personalisation to a new level, as companies will be able to anticipate customer needs and create tailored experiences.

Source: Twilio Segment

Generation Z and new expectations

Younger consumers, especially Generation Z, are demanding better digital experiences and more personalisation. Gen Z demands authenticity, transparency and engagement. This is forcing companies to take a new approach.

85% of companies now plan to adapt or optimise their marketing strategy to meet the unique needs and preferences of Gen Z consumers.

Ethical use of AI

A key differentiator between leaders and laggards in the AI race is ethics. As many as 54% of companies are addressing the privacy and ethical aspects of AI by implementing a data platform with robust privacy controls. By prioritising privacy, these companies can build trust with customers and ensure that AI-powered personalisation is safe and ethically responsible. Indeed, people are increasingly expressing concern and anxiety about how their personal data is being handled.

Predictive analytics and a cookie-less future

Given the uncertainty around third-party cookies, 55% of business leaders believe that using AI and machine learning for predictive analytics will be key to the future of personalisation. This will enable brands to deliver relevant and timely interactions based on first-party data.

The rise of artificial intelligence chatbots

Just over half (58%) of business leaders are betting on AI-powered chatbots as the next big change in personalisation technology over the next five years. Intelligent chatbot platforms, capable of managing complex customer relationships at scale, will represent the next big leap in personalisation through conversational AI.

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