Deciphering the modern consumer: how AI can (and should) go beyond superficial personalization

Consumption habits constantly change, accelerated by technological advancement. In this context, retail has also gained new tools to keep pace, following digital trails clicks, likes and abandoned carts 'DEM that reveal desires, expectations and frustrations. 

In this maze of data, retail holds the key to deciphering behaviors, anticipating trends, and delivering tailored experiences in artificial intelligence (AI), but are brands really harnessing this potential or just automating purposeless processes?

Based on a context in which the presence of e-commerce is increasingly strengthening in Brazil, where, according to a study CX Trends 202577% of consumers have bought online and offline in the last 12 months, it is more than time to look into and understand how AI can actually contribute to retail understanding the interests and demands of the modern consumer. It is not enough to just capture data; you need to translate them into personalized experiences and predictive actions. AI, especially with the advances of its generative niche, offers the way to this 'as long as it is implemented with a customer-centered design and clear objectives.

According to the Freshworks Report, four out of ten AI bots are considered indispensable for resolving conflicts and reversing negative experiences.However, there is an important warning: 80% of Brazilians consider that service has become cold and impersonal, according to the Global Trends. This data exposes a critical failure, in which the use of the resource was much more directed to automation, but without the strategic concern of change. 

AI as a strategic tool

The same scenario can be seen when we evaluate the issue of personalization of purchasing decisions CX Trends 20256 Out of 10 Brazilians are directly influenced by personalized experiences. Still, only 29% say they are fully satisfied with the recommendations they receive. What explains this mismatch? Many brands still treat AI as an operational tool, not strategic. The result is a superficial customization, unable to reflect the real tastes of the consumer.

Another crucial point is the relationship between data, trust and perceived value. The modern consumer does not reject data collection 'IT rejects the lack of purpose.The same studies indicate that there is a willingness to share information, provided there are clear benefits and transparency in the use of this information. This is precisely where AI needs to be applied with strategy, aiming at creating meaningful and relevant experiences, and not just pushing generic products.

For AI to reach its true potential, retail needs to move beyond mere mechanical automation and adopt clear principles so that technology represents the complement to established habits, adds real value in data exchange, and above all balances innovation with a human touch. 

The market is facing an inevitable scenario, where the use of AI is already essential. However, adopting just by doing is far from enough. However much AI allows a number of innovations and possibilities, such as the long-awaited customization and automation of service, will be the strategy behind these interactions that defines its success. Therefore, the provocation that remains is: retail is ready to decipher the modern consumer or will continue to be deciphered by it?