Customer Experience in the Age of AI

In today’s highly competitive business landscape, companies across all industries are recognizing the importance of personalization and seamless omnichannel experiences in gaining a competitive edge. Brands like Home Depot, JPMorgan Chase, Starbucks, and Nike have publicly acknowledged the significance of these factors in their enterprise strategies. However, achieving personalized customer experiences at scale requires harnessing the power of Artificial Intelligence (AI). This article explores how AI is transforming customer experiences and driving business growth.

The Challenge of Personalization

While many companies recognize the need for personalization, most struggle to deliver it at the scale and depth necessary to compete with industry leaders. Traditional product-centric approaches hinder the ability to orchestrate personalized end-to-end customer experiences. To overcome this challenge, brands must reimagine the customer journey as a seamless flow, powered by AI-driven decisions.

Building an Intelligent Experience Engine

To unlock the full potential of personalization, companies must build intelligent experience engines that leverage AI and customer data. These engines are designed to assemble high-quality customer experiences, proactively leading customers towards their goals. They combine human expertise with data and technology, enabling rapid self-learning and optimization. While building such engines can be complex and time-consuming, the results allow companies to deliver personalized experiences at scale.

Connecting Data Signals and Insights

To build an intelligent experience engine, companies must construct a 360-degree view of each customer by capturing data from various sources. This includes data from customer interactions, preferences, behaviors, and even external sources. For instance, the athletic-apparel company Lululemon leverages customer data collected through in-store purchases, app usage, and its Mirror fitness streaming service to gain insights into customers’ preferences and tailor recommendations accordingly.

Reimagining the End-to-End Experience

Companies like Qantas, Australia’s leading airline, take a comprehensive approach to optimize every detail of the customer journey. Qantas personalizes the booking, check-in, in-lounge, and in-flight experiences, using its app to deliver real-time recommendations based on each passenger’s context. The airline has also built a loyalty ecosystem with hundreds of partners, allowing customers to earn and spend points across various categories.

Activating the Experience Across Channels

Successful brands, such as Starbucks and sweetgreen, excel in activating personalized experiences across multiple channels. Starbucks delivers gamified offers through its app, paid digital media ads, and digital menus that adapt to local preferences. Sweetgreen, a smaller restaurant chain, has built a best-in-class app that enables customers to create custom salads, receive personalized offers, and pay in-store using their phones.

Fulfilling According to the Customer’s Context

Retailers like Kroger, Tesco, and Giant Eagle leverage AI and advanced analytics to fulfill customer needs based on their context. These companies run propensity models to determine personalized promotions and rewards, ensuring that each customer receives offers that resonate with their preferences and behaviors. Giant Eagle, for example, gamifies the shopping experience and rewards customers with loyalty points for completing specific challenges tailored to their interests.

Testing Relentlessly

Successful digital-native companies like Stitch Fix understand the importance of continuous experimentation and learning. They encourage their teams to run hundreds of experiments every month, using customer data and AI algorithms to inform their next actions. Stitch Fix’s Style Shuffle, for instance, allows customers to swipe right or left on items, providing valuable data that helps the company refine its monthly apparel selections.

Overcoming Challenges

While AI has the potential to revolutionize customer experiences, companies face several challenges in implementing intelligent experience engines. These challenges include organizational structures that prioritize products over customers, a lack of analytics integration, manual content creation, and stagnant experiences across channels. Overcoming these challenges requires a shift towards a customer-first mindset, infusion of analytics throughout the business, content tagging for reuse, and adoption of agile ways of working.

The Business Impact of AI-Powered Personalization

Companies that successfully leverage AI to deliver personalized customer experiences can reap significant business benefits. Research and real-world examples demonstrate revenue increases of 6% to 10% and net incremental revenue attributable to personalization initiatives ranging from 40% to 100%. AI-powered personalization enables companies to capture, analyze, and utilize customer data at scale, providing a significant competitive advantage in the digital era.


In an increasingly competitive business environment, personalization and seamless omnichannel experiences have become vital for success. AI is the key enabler for delivering personalized customer experiences at scale. By building intelligent experience engines that connect data signals and insights, reimagine the end-to-end experience, activate experiences across channels, fulfill according to the customer’s context, and test relentlessly, companies can unlock the full potential of AI in revolutionizing customer experiences. Embracing AI-powered personalization is no longer a choice but a necessity for businesses looking to thrive in the digital age.

Discover how AI can transform your business and revolutionize customer experiences. Contact us today to learn more about our AI-powered solutions.

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