As competition grows in the retail media space, brands and retailers feel pressured to meet consumer needs. The opportunity to provide unique advertising experiences to consumers increases as artificial intelligence (AI) develops. These rapid developments in AI put us on the precipice of a great revolution in the retail media landscape.
Not only does AI have the ability to offer consumers individualized and focused content, but it can also provide retailers and brands with a seamless way of exploring consumer insights. However, this does not come without consequences. Consumers are weary, and rightfully so. The question surrounding the future of artificial intelligence in the retail media landscape is: Can retailers be given the power to utilize AI to collect data? Can consumers put their trust in these companies when it comes to their personal information? The answer is yes, but only if companies are committed to being responsible stewards of the data they collect. Earning trust takes smart leveraging, a delicate balancing act, and above all, transparency. This includes safeguarding consumer data, using it ethically, and ensuring AI applications enhance the customer experience in meaningful ways.
The Evolution of Retail Media and AI
At the foundation of most modern marketing strategies are Retail Media Networks (RMNs). Retail Media Networks are a type of platform that allows retailers to sell digital space on their websites for third-party advertisements. Brands and retailers can use this network as an opportunity to directly interact with consumers. Advertising content can be tailored to those who would like it most based on preferences and trends by using data analysis. For example, a brand selling hard drives could use an RMN to show personalized advertisements for other hardware products on a retailer’s website. Retail Media Networks can target consumers who have shown previous interest in similar items on another website. The recent increase in personal data leaks by businesses has ultimately led to consumers being rightfully worried and demanding tougher regulations and transparency from brands and retailers.
Privacy is a Feature, Not an Obstacle
Over the course of my career, I’ve encountered business owners who believe they can overlook customer data protection, which is untrue. When brands have collected personal data from consumers in the past, it puts their information at risk. Now, we no longer need to store personal data unsafely to provide a unique brand experience. I believe that the future of Retail Media Networks prioritizes privacy to earn the trust of consumers. AI can help us rethink what we know about privacy, as well as help brands gather data and make sure it is anonymous. It has also enabled us to be able to pick out data while protecting the identities of consumers. Data platforms that are powered by AI can help businesses understand consumers while respecting their privacy.
In the modern retail media landscape, businesses must make sure consumers are educated on how their data could be used by businesses. Consumers should know how their data is used so they can have more control over privacy.
While AI can help consumers better understand how their information is being used, it also has benefits for businesses. AI-driven platforms can use Data Loss Prevention (DLP) tools to spot and prevent any data leaks before they get serious. As an example, a recent Nissan North American Data breach leaked the information of over 53,000 employees. AI-driven security platforms could have prevented this leak with algorithms that can detect potential leaks and report it to the data security team. I believe that combining AI and privacy as the basis of any retail strategy will help businesses build better relationships based on trust.
The Future of AI in Retail Media
I can say without a doubt that the future of retail media does not exist without AI. I believe the focus will shift from personalizing the consumer experience at the cost of privacy to making sure personalized content is delivered responsibly. A trend that I see becoming more popular is using AI platforms to educate consumers on how businesses may use their data before they hit the “I agree” checkbox.
As consumers seek tougher data privacy regulations, brands will need to be clear and honest about how they are using data. AI-driven platforms can help businesses communicate with consumers by providing educational information regarding how their data is used.
About the Author
Shobhit Khandelwal, CEO and founder of Carter, has extensive experience in building data products and ad-tech solutions for enterprise retailers and brands. After earning his Master’s degree from Columbia University, he led Product and Data Science teams at Citigroup, Jet.com, and Walmart in New York, and later moved to the Bay Area to lead analytics teams at MZ and Evernote. He co-founded Minoan Experience, a platform that creates “native retail experiences” by turning spaces into custom shoppable experiences. Shobhit is also the Founder and CEO of ShyftLabs, a company specializing in innovative data solutions for enterprises. Most recently, he also leads Carter, a privacy-first, AI-powered Retail Media Network.
Sign up for the free insideAI News newsletter.
Join us on Twitter: https://twitter.com/InsideBigData1
Join us on LinkedIn: https://www.linkedin.com/company/insideainews/
Join us on Facebook: https://www.facebook.com/insideAINEWSNOW
