RANCHO PALOS VERDES, CA — The advertising industry is rushing to embrace artificial intelligence.
For Gillian MacPherson, VP, product and consumer insights at Epsilon, the key to unlocking AI’s potential is a robust data foundation built on a solid identity layer that can unify disparate information sources.
“If you’re able to have a sound identity layer that can identify consumers and then use permissioned and robust first-party data combined with high-quality third-party data, that really is what’s going to make the difference,” MacPherson said in this video interview with Beet.TV.
Identity is the new foundation
Before AI models can deliver personalized messages, they must first have a stable, person-level understanding of the consumer across channels and devices. This is where a strong identity solution becomes the critical infrastructure for any advanced marketing operation. “The key really is identity and data is what really powers AI,” MacPherson explained.
An identity layer functions as the connective tissue, allowing brands to bring together the information they own with insights from external sources. “Having a robust identity that you can actually stitch all of that disparate data together is really important,” she said, noting that Epsilon’s own CoreID serves this function.
The goal is to ensure that data can be linked “accurately and at an individual consumer level, which is key really to driving performance,” MacPherson added. This foundational accuracy helps marketers manage frequency and avoid common consumer frustrations, like being retargeted with ads for a product they have already purchased.
More data, less noise
For years, marketers have lamented having too much data and not enough actionable insight. But in the age of AI, the calculus may be changing. MacPherson argued against the idea of data minimalism, citing a recent IDC white paper commissioned by her company that reframes the conversation. “As a data person, the more data the better,” she stated.
The research found that with AI technology becoming more uniform, data is the true differentiator. “A lot of the technology is the same. What differentiates is the data,” MacPherson said. “So having more data, high-quality data is actually what’s going to make a differentiated solution for brands when they’re powering their AI.”
The IDC study found that about 39% of marketers were buying more data specifically to power their AI initiatives. According to MacPherson, the investment appears to be paying off. She noted the research showed that “anywhere from 20 to 30% actually found that it delivered on their expectations or over-delivered on their expectations, which I think is critical.”
Personalization without the ‘creep’ factor
As personalization becomes more sophisticated, so do consumer anxieties about privacy. For MacPherson, navigating the fine line between relevant and invasive – or “not being creepy” – comes down to empowering the consumer with agency over their own information.
“From a consumer, I think what’s really important for them, transparency and choice and to feel in control of data is the most important part,” she said. She stressed that marketers must not only adhere to state-by-state privacy regulations but also provide clear tools for consumers to “adjust, change, and update their data.”
Ultimately, the acceptance of data-driven marketing hinges on a clear value exchange. If the data is used to power a strong, relevant message, consumers are more likely to embrace it. “They all say they want it,” MacPherson concluded, “as long as they get value out of it.”
