How AI and automation will redefine consumer personalisation and marketing strategies in 2025

By 2025, AI is expected to handle more than 80% of customer interactions—from recommending products you’ll be attracted to offering real-time support when you need it most. If you still think AI and automation are just trendy terms, it’s time to think again. These technologies aren’t just shaking up the way we personalise experiences; they’re completely redefining how brands connect with customers on a deeper, more meaningful level.

AI – The heart of personalised marketing!

Imagine your favorite clothing brand sending you not just a discount but a curated collection tailored to your style, recent browsing history, and even an upcoming occasion. This is the future of marketing, powered by AI and automation. In 2024, 91% of consumers were more likely to shop with brands that provide relevant recommendations and offers. By the coming year, hyper-personalisation will dominate, shifting from broad strategies to deeply insightful consumer experiences.

AI’s real-time data analysis enables brands to understand customer needs better than ever. It anticipates preferences, sending the right message at the right time, through the right channel. Predictive analytics will craft offers based on a customer’s context—like location or weather—creating highly relevant interactions. This next-level safety ensures consumers feel valued and engaged in ways that drive loyalty and growth.

Automation scales personalisation at speed!

While AI provides the insights, automation ensures that personalised content is delivered at scale. The real magic happens when these two technologies work together – AI analyses and segments customer data, while automation delivers personalised content across channels like email, push notifications, social media, and more. In India, the AI market was valued at USD 5.2 billion in 2022 and is projected to grow from USD 6.1 billion in 2023 to USD 23.4 billion by 2032, exhibiting a rate CAGR of 18.20% during the forecast period (2024 – 2032). Automation empowers brands to execute complex campaigns in seconds, eliminating the need for manual intervention.

For example, a customer who browses a website for new smartphones will receive follow-up content that is contextually relevant, from product suggestions to special offers – all tailored based on their browsing behavior. These automations will also allow for dynamic personalisation based on evolving customer needs, ensuring that each interaction remains fresh and relevant.

Enhanced customer experiences through AI and automation!

As we move closer to the end of this year, one thing is certain: AI and automation will redefine customer experiences. Brands will no longer be satisfied with just personalising offers based on static customer profiles. The focus will shift towards creating adaptive, real-time engagement that is fluid and continuously evolving with customer preferences. Customer service will also see a radical shift.

AI-driven chatbots, which are already increasingly common, will become even more sophisticated, capable of handling complex inquiries, offering personalised solutions, and learning from past interactions to improve future responses. These chatbots will be able to adapt to more dynamic conversations and anticipate consumer needs effectively. Customers will feel like they are conversing with a knowledgeable, always-available brand assistant, which will build trust and loyalty.

Role of generative AI in content creation!

In the times to come, the content marketing scene will look vastly different. Generative AI will take center stage, helping brands create hyper-relevant and personalised content on-demand. Visualise a scenario where your favorite brand not only sends you personalised product recommendations but also generates a blog post or video specifically designed to meet your needs—whether you’re looking for the best smartphone for photography or a breakdown of a product’s specifications.

Generative AI will not just personalise marketing messages but create content that adapts to different customer segments, ensuring that the brand’s messaging speaks directly to individuals. Brands that effectively leverage generative AI will have the ability to deliver contextualised, dynamic content that speaks directly to individual consumer needs. This will drastically improve engagement, as consumers will no longer receive irrelevant content but feel that every piece of communication adds value to their experience.

Overcoming the challenges of personalisation!

While AI and automation are revolutionising personalisation, the journey is not without its challenges. As data privacy concerns continue to rise, transparency and trust will be more important than ever. Brands will need to ensure that the data they collect is used responsibly and that customers feel comfortable with the process.

Furthermore, businesses will need to be mindful of striking the right balance between personalisation and privacy protection. It’s essential to build systems that enable personalisation while respecting user consent and providing value in exchange for the data shared.

Future of consumer engagement!

The future of marketing lies in seamless, personalised experiences driven by AI and automation. By 2025, brands will not just meet consumer needs but anticipate them, establishing deeper connections and loyalty. As India’s internet economy is set to reach $1 trillion by 2030, AI will be key to this growth, reshaping marketing by delivering intuitive, timely, and relevant experiences. Businesses embracing these technologies will stay ahead, leading the way in a new era of smarter engagement and lasting consumer relationships.

This article is penned by Raahul Seshadri – Director, AI & Tech at WebEngage

Disclaimer: The article features the opinion of the author and does not necessarily reflect the stance of the publication.