In the era of content overload, being able to curate content in a way that suits you is becoming a big obsession for businesses and consumers – people no longer react to a one-size-fits-all approach, they expect experiences that cater to their taste, and they can easily engage with on a more personal level.

AI is used a lot in businesses like streaming services and social media where user behavior is changing at an extremely fast rate to help with personalization. We’re swamped with content, we’re overloaded with information, we need to be guided, and these companies are giving us that direction.

Personalization has the potential to do much more than merely make things faster or easier. People are often happiest when they feel in control of their own lives – which is something that companies can provide. It helps to satisfy customers, build loyalty and a deeper relationship with your brand, and will pay off through engagement and profits.

Why is Personalization Important?

You may be wondering, why are so many businesses worried about personalization. Surely, it’s easier and cheaper just to offer the exact same product to as many people as possible. Wrong!

Take a look at online casinos for example, the people who are playing these games have a lot of different interests and preferences in their experiences. For a player who is looking for something new to play, game developers may offer personalized themes and recommendations of online slots that are in line with the other games they tend to play, a bit like how Netflix and Amazon recommend players with new titles.

Similarly, for a business that provides online fitness training for customers, it would be completely unreasonable to offer the same service for every user. Generic workout plans are not that effective as you need to take into account individual needs and preferences. With personalization, online fitness coaches can tailor each workout plan, leading to better results, increased motivation, and a more enjoyable exercise experience.

AI: The Engine Powering Personalized Experiences

At the core of this trend towards personalization stands Artificial Intelligence. AI algorithms are data mining tools, which gather large quantities of user data, accumulate profiles that condense users’ consumption and behavioral patterns, and then make predictions about what specific content or products users are likely to like, based on users’ viewing or purchase patterns. These data consist of everything from watching habits on streaming platforms to purchase histories in e-shops.

The real magic of AI is revealed in learning and refinement over time. As users spend time on a platform, the AI continues to refine their profiles, such that recommendations become more dynamic and interactive. It keeps the user’s engagement fresh, requiring users to explore and discover more of a platform, where they might have otherwise quit out of boredom.

Examples of AI-Powered Personalization in Action

Let’s delve into some concrete examples of how AI personalizes our digital experiences:

Online Streaming Services

Streaming services such as Netflix and Spotify are powered by an AI that aims to anticipate what you want to watch and listen to (sometimes before you even have an idea of what you want to watch yourself).

Many people prefer programs and shows that are tailored to their tastes. For example, if you have been watching a lot of historical dramas, your AI algorithm is likely to suggest a similar period drama for you to watch next.

This saves time and energy for users as they don’t have to click through hundreds of options before they settle on something they like the look of.

Tailored Shopping Experiences

Using AI, online retailers tailor product recommendations to you. Have you ever shopped at a website, and seen products recommended that, based on purchases or browsing history, the site thinks you may like? It’s a great tool that makes online shopping that little bit easier.

Not only does AI make shopping more efficient – it makes it more likely you’ll end up buying something or discover something new that they think you’ll love.

The Future of Personalization: A World Tailored to You

With AI working in the background, the future of personalization is promising. Your future self will benefit from a tech landscape that’s totally tailored to them – and we’re only just scratching the surface of what’s possible at the moment. The possibilities are endless.

However, it’s also important to note some of the concerns around personalization too. AI can only tailor your preferences based on what it already knows about you, so it could just create an echo chamber where users only see what they want to see and aren’t given the opportunity to engage with anything new. In addition, data collection by businesses is a complex topic changing in the AI landscape. We need to ensure the personalization of tomorrow comes with sufficient safeguards for the near-future consumer.