Usage of AI-Driven Personalization is Adopted by 92% of Businesses, But Consumer Confidence is Split

A new report from Twilio Segment found that an overwhelming majority (92%) of businesses are utilizing artificial intelligence (AI) to offer personalized customer experiences in order to drive growth. However, only 41% of consumers are comfortable with companies using AI to customize their experiences, even though 62% of business leaders believe that personalization is beneficial in retaining customers.

The report emphasizes the importance of creating customer loyalty by providing personalized experiences. To achieve this, businesses are using large amounts of real-time data to personalize their offerings. About 60% of business leaders find this strategy effective in attracting new customers. The use of AI in customer engagement is increasing, driven by rising consumer demands for personalized experiences. AI is seen as a major opportunity for businesses to meet these demands. This information was provided by Katrina Wong, VP of marketing at Twilio Segment, in an interview with VentureBeat.

A report has found that providing a personalized experience can increase the number of repeat buyers by 56%, which is a 7% increase from the previous year’s study. However, there is a lack of trust among consumers when it comes to how brands use their personal data to power AI. Only 51% of consumers trust brands to keep their data secure and use it responsibly. The report is based on extensive surveys conducted in March 2023 targeting both consumers and businesses across a dozen countries, including the US, UK, Australia, and Japan.