Personalization in the Age of AI

AI is revolutionizing the digital customer experiences with unprecedented personalization. However, with this transformation comes a plethora of data privacy and security concerns. We consulted 600+ digital leaders to uncover the benefits and challenges of using AI to enhance user experiences while safeguarding data.

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In our digital age, personalization is paramount

of digital professionals agree that personalization is key to providing high-quality digital customer experiences.

report that their company has increased investments in personalization in the last year.

Yet, digital professionals face substantial challenges in making effective personalization a reality.

Low Engagement

39%

noted low engagement rates in the past 12 months.

Low Retention

27%

report low retention rates in the past year, and those in UX were 59% more likely than average to say this.

Low Conversion

26%

have seen low conversion rates in the past 12 months, and those in marketing were 54% more likely than average to say this.

Enter AI – a digital team’s
most powerful sidekick

of digital professionals believe that companies must embrace AI to get ahead.

AI is quickly becoming a non-negotiable for digital professionals

66% of digital professionals use AI at work, and of those, 39% say it’s essential to do their job.

55%

of those who use AI use it for brainstorming, and marketers were 18% more likely than average to say this.

While 43%

use it to analyze data, and UX professionals were 21% more likely than average to say this.

And 35%

use AI to assist them with copywriting.

Giving them the power to get more done – faster and better than ever before

of AI users report faster insights, and UX professionals were 53% more likely than average to say this.

report more time for high-value tasks, and UX professionals were 27% more likely than average while those at the Director level and above were 31% more likely than average to say this.

Marketers have especially welcomed this high-tech coworker with open arms

20%

of marketers are especially keen on AI, as they were 20% more likely than average to report using it at work and 18% more likely than average to call it an essential technology.

But digital pros aren’t blind to AI’s potential pitfalls

77%

are concerned about the security of AI tools.

And reflecting on their use, some feel that they could approach AI more responsibly

12%

of digital professionals who use AI do not believe their company is using AI responsibly. Interestingly, AI companies (ie, AI tool providers) were 80% more likely than non-AI companies to say this.

In fact, many AI users are calling for action

77%

of AI users believe that companies need to do more to address AI-related data privacy concerns. Of those, 58% would support the implementation of a no-data-sharing policy.

AI & Customer Data

Many AI users have unlocked the powers of AI far beyond brainstorming

of those who use AI leverage customer data for AI-driven insights, and UX professionals were 33% more likely than average while companies with over 25k employees were 29% more likely than average to say this.

But, with new frontiers come
new challenges

High operational costs

Difficulty removing sensitive data

Unreliable vendors

Security concerns

Lack of AI-trained employees

Errors in AI analysis

Misleading insights

Not enough data to inform/train

Low-quality data

19%

20%

11%

36%

35%

27%

33%

25%

37%

Of those who leverage customer data for AI-driven insights say that a lack of AI-trained employees has been an issue in doing this.

And new fears

Of those who use customer data for AI-driven insights, 57% are worried about maintaining compliance with data privacy laws – of those, 69% believe that data encryption would address this concern. Interestingly, those at the Director level and above were 16% less likely than average to be concerned about compliance.

However, those who have not used AI in this way are eager to jump on the bandwagon…

digital professionals who do not use AI-driven customer insights are worried that their company is falling behind the technology curve, and UX professionals were 120% more likely than average to say this.

believe that these insights would notably improve their customer experience, and those at Director level or above were 24% more likely than average to say this.

…As soon as they can solve their privacy woes

of digital professionals who do not use AI-driven customer insights say that compliance concerns are holding them back.

say that data privacy concerns are holding them back.

Non-AI users’ choice to forgo AI isn't due to a lack of awareness

of non-users believe that AI tools would help their team do better work, and those who have been in the field for 16+ years were 23% more likely than average to say this.

believe it would make their job easier, and UX professionals were 43% more likely than average to say this.

In fact, the majority of non-users anticipate AI adoption in the near future

of non-AI users are not currently considering AI implementation. Smaller companies are the least likely to be thinking about AI, as those with under 500 employees were 37% more likely than average to say this.

But, in order for AI to get a seat at the digital table, concerns must first be addressed

Losing human touch

49% of non-users say that concerns about losing the “human touch” are holding their company back from adoption, and marketers were 20% more likely than average to say this.

Data privacy

44% say that data privacy or quality concerns are holding them back. Marketers were 30% more likely than average to say that quality concerns are holding them back.

Lack of expertise

40% say that a lack of AI-trained staff is a primary barrier to adoption.

Survey methodology & demographics

Survey conducted at 95% confidence, +/- 4% margin of error
Survey conducted from June 4, 2024 - June 26, 2024

Respondent Qualifiers:

Live in the US
18+ years of age
Work full-time as a digital professional or leader (marketing, product development, UX, or CX)

601 total respondents

Male: 44% | Female: 55% | Non-binary: 1
Representation: 45 of 50 state
(excluding: ID, MT, NM, VT & WY

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