AI predicts consumer buying behavior using extensive data

A tech CEO has revealed that advertising companies now have detailed knowledge about consumers' lives, including information about their purchasing habits. Arthur Sadoun, CEO of Publicis Groupe, explained how advanced AI technology can predict what people will buy before they even know it themselves. In a recent presentation, Sadoun shared that his company tracks 2.3 billion people and has access to over 7,000 data points on each person in the U.S. He used a fictional character, “Lola,” as an example to show how much his firm knows about individuals' preferences, social media activities, and shopping behaviors. Sadoun described how data analysis allows his company to understand if someone has children and how that affects their shopping choices. He mentioned that if a product's price rises and a person's income does not keep up with inflation, the AI can predict they will look for cheaper alternatives. In Lola’s case, this means advertising lower-priced juice to her. The reach of this technology is vast, as Sadoun claimed his company can engage with 91% of adults globally. However, experts warn that this level of data collection raises serious privacy concerns. Lena Cohen, an expert on data privacy, highlighted the lack of regulation on data brokers, leaving consumers unaware of what information is being collected and sold. Critics argue that while personalized advertising can be effective, it also raises issues of privacy and surveillance in today's data-driven world.