Think about the last time you listened to music on Spotify, watched a movie on Netflix, hailed a ride on Uber, or ordered food via DoorDash. These companies have millions of digital customers—and billions of interactions with them. They are using the insights from this data to rapidly optimize each customer’s next experience.
In the age of artificial intelligence, competitive advantage is increasingly determined by a company's ability to deliver personalized experiences at scale. We call this phenomenon the “personalization advantage,” which can be expressed by a simple formula:
