AI Pushes Personalization From Guesswork to Growth

Data is being collected at unprecedented scale, but its real value emerges when analytics and AI translate signals into experiences that feel timely, relevant and human rather than intrusive.

That distinction matters. According to “Personalized Offers Are Powerful — But Too Often Off-Base,” a PYMNTS Intelligence and AWS collaboration, 83% of consumers are receptive to personalized offers. Yet only 44% of consumers who received tailored offers say those offers were very relevant to their needs, underscoring a widening gap between data availability and execution. Nearly half of consumers say they would switch merchants for more relevant offers, a signal that personalization has become a competitive lever rather than a marketing add-on.

Consumers Want Personalization, But on Their Terms

Relevance matters more than raw discounts: consumers who find offers poorly tailored place greater weight on personalization than price alone, indicating that precision often outperforms promotion.

The opportunity for brands and platforms was underscored by a Thursday (Jan. 8) CES panel discussion, moderated by Melissa Harrison, vice president of marketing and communications at the Consumer Technology Association. As Harrison noted, marketers are walking a fine line “where you want to deliver what customers want but you also want to surprise and delight them,” introducing new experiences without crossing into discomfort.

From Prediction to Understanding

Panelists emphasized that effective personalization is less about predicting behavior in isolation and more about understanding context across the customer journey. Najoh Tita-Reid, growth chief officer at Mars Petcare, said predicting behavior is important, but anticipating consumer needs is equally critical. With more than half the population owning pets, she said, understanding those households “at every touch point that is relevant” includes recognizing breeds, life stages and even when families may be acquiring a new pet.

That shift from static prediction to dynamic understanding is increasingly powered by artificial intelligence. Angela Zepeda, global head of marketing at X, described how AI examines where conversations are trending in real time, allowing brands to place relevant advertising as those conversations unfold. She said the approach is “effective and efficient without anyone else getting involved,” reflecting how automation is reshaping speed and scale.

Physical and Digital Converge

As platforms expand, data unification becomes more complex and more valuable. Toby Espinosa, vice president of ads and growth services at DoorDash, said the company’s expansion beyond restaurants and into multiple categories has opened access to data points that were previously inaccessible. With roughly 25% of users ordering outside restaurant delivery, he described viewing data through multiple lenses, including consumers, merchants and Dashers.

Espinosa later noted that DoorDash’s Smart Campaign offering has helped smaller merchants prospect across DoorDash and other channels, driving incremental sales. “Physical and digital, coming together as one,” he said, “unlocks pockets of growth.”

Breaking Down Silos

The panel noted the value inherent in breaking down organizational silos. Allison Stransky, VP and CMO at Samsung Electronics, said Samsung’s business lines operate as “companies within their own right.” To address this, Samsung created a Connected Experience Center to better understand how customers use its products, alongside a dedicated media team focused on search and social as AI reshapes media performance.

Peggy Roe, executive vice president and chief customer officer at Marriott International, said data “has finally caught up to what our industry wants to do, which is anticipating what customers want.” With deeper insight into preferences and passions, she said brands can more effectively “put the right product portfolio in front of you.”

Trust underpins all of it. As Zepeda noted, “trust is the number one metric for a long time brand.” PYMNTS Intelligence data referenced above reinforces that point. AI and data are powerful tools, but their impact depends on relevance, transparency and integration across the enterprise. When data moves freely and insight drives action, personalization stops being a gamble and starts becoming a growth strategy.