Personalizing everything doesn’t mean people feel seen

In an era of personalized everything, it doesn't necessarily mean people feel truly seen and appreciated. A young employee's decision to donate funds to help pay for cancer patients' rides to their treatment centers exemplifies this. Her choice had deep personal significance, as her own mother was undergoing cancer treatment, and she understood how challenging even simple tasks could become during a difficult time.

However, would an AI algorithm have predicted her choice or grasped the emotional weight behind it? Likely not.

While AI can predict preferences, personalize communication, and automate interactions on a scale that businesses previously couldn't achieve, there's a risk of confusing prediction with genuinely knowing someone. As companies refine their ability to anticipate what people might want, it's crucial to remember that personalization isn't just about predicting. It also involves participation.

Organizations should give just as much thought to moments where human choice and attention still matter. Companies that rely on standardization to create consistency at scale may overlook the fact that not everyone feels seen, recognized, or valued in the same way. For instance, a corporate gift given to every customer who signs a renewal might not resonate with everyone. In fact, 70% of people have reported receiving a corporate gift they didn't want.

True personalization goes beyond feeding someone's past purchases or stated preferences into an algorithm. It involves asking people about their preferences and giving them a say in the experience. This could mean allowing an employee to choose the type of recognition that matters most to them or letting a customer decide how they wish to engage with a company.

In the case of the employee whose mother was undergoing cancer treatment, her company didn't need to know the personal detail about her life to give her a meaningful gift. They simply needed to offer her the choice. By allowing her to select something she would personally enjoy or direct the funds toward a cause she cared about, the company created space for her to imbue the gesture with personal meaning.

Corporate gifting serves as a clear illustration of the difference between prediction and genuine personalization. Instead of asking what to give employees, customers, and partners, companies might ask how they can let them choose what feels meaningful. Research shows that 81% prefer choosing their own gift, and in one campaign, about half opted for a charitable gift rather than a physical item. Each choice is valid, and the focus should be on creating flexibility for individuals to make the gesture personally significant.

While AI will continue making businesses faster, easier, and more personalized, it's essential not to optimize away the human element. A personal conversation or a thoughtful recognition, which may require more effort than an automated interaction, can sometimes be the key to making someone feel truly valued. Companies that excel at making people feel appreciated often know when not to guess. Laura Hertz, CEO of Gifts for Good, emphasizes the importance of balancing efficiency with genuine human connection.