AI is reshaping how businesses personalize

While AI adoption is rising, there's a disconnect in how businesses are using it. Although 97% of brands are planning to increase their budget for AI tools within the next five years, many aren’t using these tools strategically today. In fact, 81% of companies report using AI simply because it's embedded in their existing tools, rather than actively optimizing it for personalization. This raises an important question: Are businesses genuinely harnessing the power of AI for deeper customer engagement, or are they simply adopting it without fully realizing its potential?

To truly stand out, businesses must go beyond simply adopting AI — they need to use it strategically to deliver smarter, more meaningful customer engagement. As personalized interactions become the norm, AI is no longer optional; it’s essential for scaling tailored experiences with speed and precision.

Currently, 56% of brands use AI-driven personalization to create unique customer experiences — leveraging data to ensure every interaction aligns with individual preferences and past behaviors. When done right, this can lead to stronger relationships, deeper engagement, and improved retention.

Real-time personalization is the future of innovation. More than half of brands (51%) already tailor messaging based on real-time customer behavior and communication preferences.

For brands, this means:  Delivering the right messages, offers, and recommendations at the perfect moment.

For customers, this means:  Receiving content on their terms, whether via email, push notifications, or social media — maximizing relevance and conversion potential.

As the demand for tailored experiences grows, brands that use AI effectively will strengthen customer relationships and achieve better results. Those that fall behind risk losing customers faster than AI can predict.

AI is shaking up the way businesses engage with customers by driving efficiency, hyper-personalized experiences, and cost savings.

Here’s how businesses are using AI to scale tailored interactions and streamline operations:

• 57% use AI automation to boost employee efficiency and optimize workflows.

• 57% implement AI-powered captioning for audio, video, and visuals for more accessible experiences.

• 51% use AI for hyper-personalized marketing, adapting content and engagement in real time.

But the benefits don’t stop at personalization. AI is also making a major business impact:

• 45% of leaders say AI’s biggest strength is its ability to adapt to customer needs.

• 41% report significant time savings, freeing up teams for more strategic work.

• 39% highlight cost savings as a key benefit of AI-driven personalization.

AI isn’t just about better customer experiences — it’s about making businesses faster, more efficient, and more cost-effective.

Adopting AI just because it’s available — or because there’s a mandate — isn’t a strategy. Real value starts with knowing what you want to achieve, then working backward to apply AI where it actually matters. The strategy isn’t in the tools. It’s in how you apply them. When aligned to clear goals, AI can do more than streamline operations — it can deepen customer relationships and power meaningful results.

Below are key objectives to aim for, along with strategies to enhance those relationships with AI:

Camping World partnered with Twilio Segment and Twilio Voice to gain customer insights, personalize communications, and unify phone systems across their dealerships.