Why Personalization And AI Is The Perfect Union For Better Business Outcomes

For the last three-four years, I have started receiving personalized messages and offers on my birthday from many companies. These companies are none other than banking institutions, e-commerce websites, online learning & training websites, social media accounts, and even every digitally active business I have signed up with for some service or solution.

Businesses long ago moved to customer-centric thinking to attract, engage, and resonate with new prospects and customers. As a result, customers’ expectations for a seamless experience at every touch-points with a business has increased so far.

Let’s check at current customer behavioral patterns:

  • 81% of consumers want brands to understand them better and know when and when not to approach them. Source: Accenture

It means, customers now expect businesses to show recommended services or products as per the on-demand. One of the leading research firm Statista, also found this behavioral pattern in one of its studies.

  • 60% of online shoppers are not bothered to share their data with shopping platforms for the sake of better customer experience. Source: Statista

It means the customers looking for personalized experiences are not afraid of data sharing, such as browsing activities as well as relevant personal information for personalized experience on platforms.

AI Helps Building Personalized Customer Experiences

AI helps in identifying and understanding customers. It also provides an ability to assess the needs of customers as well as the capability for businesses to determine whether their products/services will meet those needs or not.

AI has simplified user profiling processes. Therefore, an AI-powered system not just efficiently understands the user but also recommends him items of his interest without needing human-interference.

In addition to this, the AI-based systems also are self-sufficient to analyze user static and collect more data by using an approach of filing online forms or from surveys.

For example, Ola has started reaching riders with online form surveys. Besides having reviews and rating systems on mobile apps, the company now uses email to reach customers and collect insights. Ola has started using an online form to ask you to rate services based on your satisfaction level for a wide range of experiences. Fees charged for the particular ride, chauffeur’s behaviors, promptness of vehicle availability, condition of the vehicle, and other triggers a customer would expect from the business.

AI-Driven Personalization Use-Cases

Besides Ola, many companies are optimally using AI and have gone far to ensuring highly personalized experiences for their customers. Let’s check some AI use-cases:

  • Volvo is trying to leverage technology big time. Its machine can now analyze one Million events to discern their relevance to breakdown and failure rates.
  • Hopper is intelligently using AI to understand customer behavior patterns and has succeeded in precise prediction for best flight deals from A to B throughout the year.
  • American Express is using AI to crunch through its mass data, and make quicker, smarter decisions, detect fraudulent cases in pretty much real-time.
  • Thread is using AI to provide personalized clothing recommendations to its customers. Customers take style quizzes that offer data about their personal style.


Personalization in the context of business strategy is not a new concept, but are AI-Integrated systems. Personalization at every touch-points brings so many options to users to choose from. In a deluge of excess choices, the user may be getting lost.

AI-driven personalization, however, adapts to the recommendation system. AI helps establish and modify a recommendation system as per the user’s emotional needs and fulfill the requirements of every user by suggesting user-specific items.

American Eagle Outfitters has beautifully integrated AI in all spheres of its companies. Whether it’s Aerie that uses “This” and “That” recommendation tricks or Whole Food Market that help users browse products through messenger as well as help them find recipes for the same on social media platforms.

AI has many chapters uncovered; thus, it has the potential to create manifold opportunities to address hyperconnected customers with more and more personalized experiences.

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Alka Singh

Alka Singh

Technical Writer & Content Strategist | Active Since 2011 | Worked at OnGraph | Working On writingtrick.com |