How AI is changing the personalisation game

AI has been integral to personalisation for years. 

Ever since the advent of basic product recommendation algorithms, AI has been helping marketers anticipate what customers want – often before the customers know themselves. 

But with trailblazing new technologies fast emerging, the next generation of AI is set to transform the personalisation game as we know it. 

So, how should marketers navigate the shifting landscape? Let's take a closer look.

From prediction to creation: AI’s new frontier 

For many years, personalisation has relied on mature AI technologies to automate elements of the personalisation process.

Tools like recommendation engines, decision support systems and predictive models help brands deliver tailored experiences by predicting customer preferences and recommending relevant products, services or content based on past behaviours. These kinds of programs are known as deterministic AI.

The beauty of deterministic AI is that it’s straightforward and predictable. It takes in data and uses it to make calculated decisions. It’s how YouTube serves up videos you’ll enjoy watching, and Amazon suggests products you might like.

These systems are already well-established and deliver proven results.

According to a recent Twilio Segment study, 80% of business leaders say consumers spend more (38% more, on average) when their experience is personalised using these technologies.

But now, we're at the dawn of a new era. A different kind of AI is fast becoming indispensable in the modern workplace: generative AI.

Generative AI models such as Open AI’s ChatGPT, Meta’s Llama, Anthropic’s Claude, Google’s Gemini and Microsoft’s Copilot are transforming how companies automate tasks and generate content.

‘Generative AI has sparked a revolution, and we’re still at the beginning. Right now, there’s a race to figure out how best to use these tools effectively. As we continue to discover what they’re truly capable of, we’ll see them used in increasingly unique and impactful ways.’ - Ryan Bodger, Chief Creative Officer at Now We Collide – a full-service creative agency with a specialist AI division.

While deterministic AI focuses on predicting customer behaviour, generative AI creates entirely new content based on the data we input.

Where a marketing team may have spent hours crafting ad copy, ChatGPT can now produce it in seconds. Instead of spending time searching for the right image to accompany it, DALL-E can create a custom visual based on a simple text description.

It goes without saying, the potential of these technologies to revolutionise marketing practices is huge.

That said, the technology is still evolving and is far from perfect. Major kinks still need to be ironed out – and concerns about ethical usage and quality control remain.

‘Generative AI's potential is mind-blowing, but our expectations for what it can achieve sometimes exceed what it can currently deliver. It still needs human oversight to ensure quality and accuracy. And you can’t replace human experience and emotional insight. Of course, it will get smarter. But right now, it won’t get everything right. So, it’s important you carefully review all your AI-assisted projects.’ says Bodger.

However, when used mindfully, generative AI can be a powerful tool for marketers, enabling them to automate content creation, personalise customer experiences on a large scale and uncover new creative possibilities.

The future of personalisation

The future lies in blending these technologies to deliver hyper-personalised experiences at scale.

Marketers can use deterministic AI to segment audiences, identify the next best action and automate decision-making processes. Generative AI, meanwhile, can enhance these efforts by creating tailored content for different segments or dynamically adjusting ad copy based on a customer's predicted preferences.

Picture this: a sportswear brand uses deterministic AI to predict that a customer is interested in outdoor exercise based on an uptick in their searches for local hiking spots.

Instead of merely showing static ads relating to this preference, generative AI can create custom ads featuring durable trail running shoes and water-resistant hiking jackets. This combination of approaches is much more likely to increase engagement and conversion rates.

Emerging AI can also play a vital role in creating a consistent customer experience.

Omnichannel personalisation – delivering a seamless customer experience across multiple channels and touchpoints – has long been a goal for marketers. These new forms of generative AI are making it more achievable.

Tools can now determine the most effective way to reach customers (email, social media, SMS, or in-app notifications) and adapt messaging in real time.

Recent research by Forbes indicates that 76% of consumers will go out of their way to engage with a company that provides better customer service. New forms of AI can help brands meet those expectations by providing seamless interactions across all platforms.

Staying ethical in the age of AI  

Using AI for personalisation raises important ethical considerations.

As AI’s capabilities expand, so does the obligation to use it honourably. There’s a fine line between delivering personalised experiences and being invasive. Marketers must uphold and stay on top of Australia’s current privacy reforms and applicable international legislation while using this technology, ensuring customers understand how their data is being used.

Unfortunately, generative AI has the potential to make compliance more challenging.

Bodger says, ‘There are a lot of unknowns when it comes to data security. Established players like Apple, Microsoft and Google have a history of data protection, but increased use of newer platforms like ChatGPT raises questions around IP, privacy and data security. We don’t really know yet how the information we input is being used. We must therefore be mindful of the kind of data we share, especially when dealing with sensitive information.’ 

It’s essential to adopt a privacy-first approach by integrating data protection measures into your AI workflows from the outset.

And marketers should regularly monitor AI systems to ensure compliance with Australian legislation, GDPR and other regulations. This means prioritising data minimisation, anonymising sensitive information and providing customers with clear options to manage their data preferences.

Boost your personalisation game with these 6 strategies

Ready to harness the power of AI in your personalisation efforts? Below are 6 practical tips to get started:

1. Leverage mature AI for immediate wins

Implement well-established tools like recommendation engines and decision support systems to drive quick revenue gains.

If you’re running an ecommerce site, for example, you might install a plug-in that suggests products based on a customer’s browsing history. If you’re part of a larger organisation with a bigger budget, consider investing in a robust decision engine to automate customer interactions and deliver proactive solutions.

2. Experiment with generative AI for low-risk content creation

Start small with generative AI.

Test it by using a program like ChatGPT to write social media captions, email subject lines or other low-risk content. Play around with different prompts for different results!

As the technology evolves and matures, consider using it to dynamically personalise landing pages or create custom video content based on user preferences.

Just be sure to have a real person review all content to ensure it’s accurate and aligns with your brand. Generative AI can make mistakes.

3. Find the right balance

Use deterministic AI for tasks requiring high accuracy and predictability, like customer segmentation or determining the next best product to recommend.

Then, integrate generative AI for tasks requiring creativity, such as developing unique ad variations or producing personalised newsletters.

It’s all about finding that balance.

4. Keep ethics and compliance front of mind 

Implement human oversight to avoid AI-generated content that’s inaccurate, misleading or offensive.

Ensure you stay compliant with data privacy regulations and that your customers know how you’ll use their data.

It’s a good idea to regularly train your team on AI's benefits and limitations. If they know the potential pitfalls, they’ll know what to watch out for.

5. Adopt a test-and-learn approach

Start with small AI applications, measure their impact and adjust your strategies based on what works and what doesn’t.

Conversational AI is designed to learn and improve with every interaction. With correct implementation, you can create feedback loops where each AI-driven campaign refines itself based on user responses.

6. Plan for the future

Generative AI is evolving quickly. Within 5 years, it will likely be standard practice for brands to rely on AI-generated content.

Now’s the time to get proactive! Build AI capabilities into your personalisation strategy now to stay ahead of the game.

AI is no longer the future of personalisation – it’s the present. Join us on ADMA’s Unlocking Personalisation and Automation course  to master AI-driven strategies and transform your marketing game.