Observed Signal · May 2, 2023 · Research Report · Source: CMSWire · Impact: 2/5 · Sentiment: Neutral
Most Consumers Uncomfortable with AI Personalization, Twilio Segment Survey Finds
Twilio Segment's State of Personalization report reveals a significant gap between business adoption and consumer acceptance of AI-driven personalization. While 92% of businesses use AI-driven personalization to drive growth, only 41% of consumers are comfortable with its use in personalizing experiences, while 59% remain uncomfortable. The survey, conducted in collaboration with adult consumers who made online purchases in the past six months, also highlights data quality as a barrier: 31% of businesses report that poor data quality impedes optimal AI implementation. Katrina Wong, VP of Marketing at Twilio Segment, emphasizes the need for high-quality, real-time data and the importance of building consumer confidence. The findings also show generational differences, with Gen Z overwhelmingly positive (72% say personalization positively impacts their experience) and only 15% uncomfortable with AI personalization, compared to 24% of Millennials, 34% of Gen X, and 43% of Boomers. The report stresses balancing personalization with privacy and using consented data.
This survey provides important insights into consumer attitudes towards AI personalization, highlighting a disconnect that marketers need to address, but it is not a major industry event.
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Key Takeaways & Evidence Grounding
- 92% of businesses use AI-driven personalization to drive growth (Twilio Segment's State of Personalization report)
- Only 41% of consumers are comfortable with AI being used to personalize experiences
- 59% of consumers are uncomfortable with AI-driven personalization
- 31% of businesses say poor data quality impedes optimal AI implementation
- Gen Z is most accepting: 15% uncomfortable with AI personalization, versus 24% Millennials, 34% Gen X, 43% Boomers
- Survey conducted from March 8 to March 24, 2023, among consumers who made online purchases in the past six months
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