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Leadership Brief

Machine Learning, Marketing, and Privacy

April 09, 2019

Roland Bühler

Artificial intelligence and machine learning techniques are becoming more and more important for marketing. ML offers new possibilities to analyze customer data, enabling individual marketing measures to be delivered. Nevertheless, privacy is often a concern when it comes to ML. Furthermore, legislation based on GDPR has to be considered. This leadership brief gives an overview of the opportunities, privacy risks, and solutions regarding machine learning and marketing.

1 Executive Summary

It is not a secret: Machine learning and marketing are best friends. Many marketing use cases can be empowered by AI. Furthermore, AI enables new, innovative marketing applications and concepts. Machine learning requires large data sets. When it comes to marketing, such data sets typically include personally identifiable information (PII). But what about privacy? Undoubtedly, data protection must be part of the story — whether you like it or not. In the end, it can even be a competitive advantage if consumers provide PII on the basis that your company has not only a high reputation related to its core business but also as it is seen as a champion of privacy as well. This can lead to sustainable trust — a typical marketing goal. Use AI in a creative way and focus on your customer and consumer needs. The possibilities and opportunities of ML and machine learning are endless. But, as with any other technology: You must manage the risks.