Gen Z and AI personalization—why brands can’t ignore human insights

Gen Z, often referred to as the electronically savvy generation, has grown up in a world of modern technology, with iPads and Chromebooks placed in our hands at school from a young age. But this has led us to crave our own form of connection with the parts of our lives we interact with often—brands. As numerous studies have shown, Gen Z does not want to be a statistic but wants to feel bonded to and aligned with the brands they patronize. That’s why personalization is important. By catering directly to each consumer, brands can build a personal relationship with them by using their individual preferences to recommend products and ads they might like. If they do this correctly, companies can capture consumers and capitalize on their purchasing power. And lately, with the rise of AI, brands are incorporating the technology to take personalization for Gen Z consumers to a new level. Ad Age Gen Z Contributor Column We welcome Gen Zers to submit fresh takes exploring Gen Z within the ad industry Learn more here Because Gen Zers love and expect personalization, brands look at AI as a way to hyper-personalize their content for Gen Z in real time. This can allow for an enhanced user experience through users getting relevant product ads and placements. By using data from the customer, AI technology can work to predict what consumers may be interested in at that moment. This can also manifest through many avenues such as product recommendations, ads or predictive writing. When a brand offers products and services based on an understanding of their interests and behaviors, it helps to solve Gen Z’s desire for connection and relating. Personalization can also help brands stand out from the competition. Spotify did this well with its Daylist, which uses AI to create customized playlists. These became viral on social media, with users sharing the often humorous names given to the compilations. Spotify also frequently updates it throughout the day, allowing consumers to see how Spotify is adapting to their listening tastes. Yet does using AI for personalization truly answer Gen Z’s request for brand authenticity and connection? In a way, it seems like brands are attempting to take a shortcut to Gen Z’s hearts and wallets by allowing technology to fill an inherently human want. Using AI for customization can be a double-edged sword. It has the potential to create data privacy concerns. And when AI recommends ads based on behavior and not specific searches, personalization can move from cool to creepy. Additionally, overreliance on algorithms to replace human insight can lead to results that feel disingenuous and potentially lead to errors. Especially when it comes to smaller companies, businesses may not have enough data on which AI can base predictions. As Gen Z values transparency and authenticity, brands can increase their candidness to share when AI is being used on their platform by including more significant messages instead of fine print. This can allow Gen Zers to understand what comes from humans and what is generated by machine learning. When a brand speaks candidly about its AI usage, it can increase its trustworthiness to consumers—including Gen Z, whose members don’t necessarily trust big companies but appreciate brand transparency. Ad Age Agency Report 2024 Revenue and analysis for agency companies Click here Gen Zers ultimately want to feel linked to their favorite brands. While personalization with AI helps to connect consumers and brands, more is needed to complete the whole picture. There are additional ways to help merge this gap, such as marketing campaigns and relatable products. An increase in personalization with AI can be effective, but it does not act as a replacement for human connection. Ultimately, machine learning is based on algorithms to mimic human behavior, but it cannot develop breakthrough ideas to keep Gen Z connected. As the world turns more digital, creating a balance between AI- and human-generated personalization will allow brands to stay in touch with Gen Z consumers while still prioritizing efficiency and meeting business goals. If brands lean too much toward AI, this could ultimately result in impersonal experiences, which is the opposite of their intention. By being transparent with how they use AI to improve the consumer experience for Gen Z, brands will set a positive precedent that helps them stay connected with customers. Ad Age Creativity Bookmark our section covering the best in brand creativity every day Read more here

Gen Z and AI personalization—why brands can’t ignore human insights

Featured Stories