The intersection of value and technology shifts, particularly with generative AI, drives a new wave of consumer engagement and business innovation. By focusing on personalization, efficiency, and trust, businesses can leverage AI to deliver high-quality experiences and build lasting consumer relationships.
1. Introduction
• Brief introduction to the topic of AI and consumer engagement
• Overview of the key points to be discussed
2. Major Shifts in the Market
• Explanation of value shifts and technology shifts
• Importance of these shifts for future business growth
3. Generative AI: A New Era
• Current state of generative AI and its potential
• Transition from access to edit in consumer preferences
4. Consumer Preferences and Stress
• Overload of information and connectivity leading to consumer stress
• Consumer desire for reduced engagement with technology
5. AI and Personalization
• Role of AI in delivering personalized experiences
• Consumer readiness and interest in AI-powered solutions
6. Business Strategies for Success
• Importance of delivering quality, efficiency, and affordability
• Focus on solving red-hot problems and providing relief
7. Building Trust with AI
• Challenges and opportunities in building trust with consumers
• Strategies for ensuring transparency, collaboration, and risk mitigation
8. Examples of Successful AI Integration
• Early movers and industry leaders in AI adoption
• Case studies of AI-driven consumer relief and satisfaction
9. Conclusion
• Summary of key insights and strategies
• Final thoughts on the future of AI in consumer engagementIntroduction
Kirsten Green, American Venture Capitalist and Founder / Managing Partner of Forerunner, discussed winning with consumers in AI. In her talk, she covered the major shifts in consumer preferences and technology driving the next wave of business innovation, particularly focusing on the role of generative AI.
Major Shifts in the Market
Kirsten believes we should care about two major shifts as investors and market trackers: value and technology. Value shifts drive demand, while technology shifts underpin adoption. When these two intersect, they create rare and defining moments that can build new industry giants. We’re at one such inflection point today with generative AI.
Generative AI: A New Era
Generative AI is powering a new generation of companies to shift from providing access to products and services to enabling highly personalized edits. Over the past couple of decades, the focus has been on unlocking access to experiences, products, and services, leading to the rise of social networks, e-commerce, and digital services. However, we have reached peak access, where more information and connectivity are becoming counterproductive and overwhelming for consumers.
Consumer Preferences and Stress
Today’s consumers report elevated stress levels due to hyperconnectivity and an overload of choices. Many desire to engage less with technology, social media, news, and games. This hyperconnectivity is a source of stress, with 75% of people avoiding decisions or purchases due to feeling overwhelmed. This trend highlights a crucial opportunity for technology to address these challenges.
AI and Personalization
Enter generative AI, which has the potential to shift from access to edit. Consumers now prefer fewer options that are highly personalized and directly relevant to them. They seek tools to perform tasks for or alongside them, increasing productivity without additional effort. AI is uniquely positioned to make personalization a reality by delivering tailored experiences, maintaining context, and ensuring privacy.
Business Strategies for Success
To succeed in this new landscape, businesses must focus on delivering high-quality, efficient, and affordable solutions that solve pressing problems for consumers. Building effective AI solutions involves creating products that significantly relieve stress and complexity. Magic experiences are crucial to retaining consumer engagement over time, whether they offer delight or relief.
Building Trust with AI
Building trust is essential for successful AI integration. Consumers have high expectations and limited patience for experimentation, making it crucial to get it right from the start. Trust can be built through transparency, collaboration, and realistic promises. Early movers like Adobe and Perplexity are setting examples by honoring intellectual property rights and incorporating citations in search results.
Examples of Successful AI Integration
Several companies are already excelling in delivering AI-driven consumer relief. These early movers demonstrate that focusing on solving red-hot problems, providing high-quality outputs, and ensuring efficiency can build lasting consumer trust and engagement.
Conclusion
The intersection of consumer desire for personalized, efficient solutions and the potential of generative AI offers a significant opportunity for businesses. By focusing on delivering magic and building trust, companies can leverage AI to create high-quality, stress-relieving experiences that drive loyalty and scale. As we navigate this new era, the key to success lies in understanding and addressing the evolving needs of consumers with innovative AI solutions.
For more
Watch Kristen’s full 15-minute talk entitled “Transforming AI from Novelty to Necessity for Consumers.”
