When will AI be rich enough to start customizing the experiences without relying on us marketers?

David Edelman, Senior Lecturer at Harvard Business School and Executive Advisor, delves into the evolving landscape of personalization in the AI era. Discover how AI is enabling brands to create broader, more integrated personalized solutions, and the strategic implications of being at the center of these innovation ecosystems. Gain insights on the collaborative potential of AI in managing and merging data streams, and its role in transforming customer experiences across industries.
About the speaker

David Edelman

Harvard Business School

 - Harvard Business School

David is Executive Advisor & Fellow at Harvard Business School

Personalized, Customer Experience in the age of AI

Show Notes

  • 00:30
    Trend or Trash: AI Personalization improves ROI?
    Discussion on the impact of AI personalization on Return on Investment.
  • 02:15
    Secret Sauce: Ingredients for personalization soup.
    Exploring the key elements needed for successful personalization strategies.
  • 04:45
    Game Plan: Mobilizing C suite for personalization.
    Strategies to encourage organizational leadership to embrace personalization initiatives.
  • 07:10
    Crystal Ball: Future of AI in customizing experiences.
    Predictions on when AI will be advanced enough to personalize experiences independently.

Quotes

  • "I always think market people are going to need to be in the loop because you do want to make sure that what's actually happening makes sense for your brand. There's a lot of risks, and I think there will be a lot of risks going forward." - David Edelman

  • "I don't think the goal should be to get marketers out of the loop. I think the goal should be to expand the range of areas where you can provide value and the whole palette of experience you can deliver. So where I actually think AI is going is enabling marketers, well, brands, companies, to actually provide even broader personalized solutions." - David Edelman

  • "One of the things we don't talk about enough about AI is that AI can write code. We talk a lot about content. We don't talk as much about code." - David Edelman

Episode Chapters

  • 01:43: Crystal Ball -- Future of AI-based personalization_Marketers will need to stay involved to ensure brand consistency and manage risks, but AI will expand the range of value that can be provided, including writing code and integrating data sets.
  • 02:52: Talk Nerdy To Me -- AI writing code_AI capabilities include writing code for integrating and normalizing different data streams, which helps companies easily bring data together and manage privacy issues.
  • 03:56: Game Plan -- Personalized ecosystem strategies_Companies like Marriott and Home Depot are using AI to develop ecosystems around personal solutions, such as bathroom renovations, representing a strategic shift towards being personal solution destinations.

Episode Summary

  • # Exploring the Future of AI in Customer Personalizatio n## A Vision for AI in Marketing In the ever-evolving landscape of marketing, one of the most captivating topics today is the intersection of Artificial Intelligence (AI) and customer personalization. With marketing professionals investing an incredible amount of time and energy into creating AI experiences, it’s essential to understand the future possibilities and the role marketers will continue to play in this field. In our recent MarTech podcast episode, we delved into these pressing questions and received enlightening insights from a senior lecturer at Harvard Business School and an executive advisor to Edelman Advisory Services. ## Will AI Replace Human Marketers? Our discussion began with the question on everyone’s mind: "At what point will AI be advanced enough to customize experiences without heavy marketer involvement?" Surprisingly, the answer wasn't about replacing human marketers but enhancing their capabilities. The consensus is clear—marketers will always be necessary to ensure that AI-driven efforts align with the brand’s vision and values. Human oversight is essential to navigate the ethical and strategic nuances that machines alone ca ot fully grasp. ## Expanding the Range of Personalized Solutions The conversation highlighted not just the capabilities of AI in creating content, but its burgeoning role in writing code. The potential here is immense. For instance, AI can now integrate disparate data streams by understanding and merging their schemas, as exemplified by products used by major companies like Pepsi and Nielsen. This technological leap means easier and more efficient data amalgamation, fostering stronger collaborations among various businesses. The implications extend to enhancing customer experiences by offering far richer and more tailored solutions. ### Real-World Applications: Renovating Your Bathroom One of the most compelling examples discussed was within the realm of home improvement. Imagine you want to renovate your bathroom. By merely taking a picture of your current bathroom and submitting it to a company like Home Depot, AI can assess the dimensions, plumbing layout, and even design preferences sourced from platforms like Pinterest. It can then present you with multiple renovation options, complete with costs and implementation strategies. Companies are seriously investing in this level of personalized solution delivery, transforming themselves into destinations that cater to individual customer needs. ## Strategic Implications for Marketers This movement towards AI-driven, personalized ecosystems carries significant strategic weight. Marketers must now consider their roles within these ecosystems: - Are they at the center, orchestrating various service providers? n- Are they active participants, collaborating with others? n- Or might they risk being excluded from these new, data-rich environments? These choices will shape the competitive landscape moving forward, highlighting the need for smart, forward-thinking strategies. ## Navigating the New Era of Data and Personalizatio nWrapping up the discussion, it's evident that we are navigating uncharted waters in the realm of AI and personalization. These new tools offer unprecedented power, enabling us to analyze and utilize data in ways that enhance customer experiences manifold. However, the key takeaway is that this is not a journey of isolation for AI but one of collaboration with human marketers. While AI offers the technical backbone, human sensibility ensures that the end result is both meaningful and brand-consistent. ## Conclusio nIn this brand-new era of personalization, marketers have a unique opportunity to leverage AI not just as a tool but as a partner in delivering holistic and customized customer experiences. The ongoing challenge is to keep learning, adapting, and i ovating to stay ahead in this dynamic field. The future isn’t about AI replacing marketers but about a harmonious integration where both can work together to achieve more than either could alone. For continuous insights into how AI and other technologies are revolutionizing marketing, tune into the MarTech podcast where we explore these fascinating topics with industry experts.
About the speaker

David Edelman

Harvard Business School

 - Harvard Business School

David is Executive Advisor & Fellow at Harvard Business School

Personalized, Customer Experience in the age of AI
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