Retailers warned: identity gaps blunt AI personalisation

Amperity has published new research linking real-time personalisation to higher purchase intent, while highlighting persistent gaps in identity and execution that leave retailers sending irrelevant or mistimed messages.

The 2026 State of Personalisation in Retail report is based on a survey of 1,000 US consumers. It argues personalisation is most effective when it reflects a shopper's current intent, rather than a static profile or delayed updates.

Consumers said they respond when retailers react during live browsing. In the survey, 74% reported they are more likely to purchase when they receive a "truly personalised" offer or recommendation, and 69% said they are more likely to buy when offers adjust instantly while they browse.

However, many retailers still fail to meet basic expectations. More than half of respondents said shopping experiences feel generic, with 57% reporting retail experiences remain generic despite retailers' claims of personalisation.

Targeting and timing errors were also common. Overall, 79% said retailers often get personalisation wrong, citing irrelevant or poorly timed messages.

Expectations gap

The report also points to strong demand for recognition across touchpoints. In the survey, 83% said they want retailers to remember them, including their preferences and past purchases.

Patience for delayed tailoring also appears limited. More than half said brands should personalise in real time rather than days later, and nearly one-third expect relevant offers from their first interaction.

Email remained the preferred channel for personalised outreach. That increases pressure on retailers to improve accuracy and timing, given the volume of promotional and triggered messages sent by consumer brands.

The findings emphasise "high-intent moments" such as browsing, cart consideration and engagement with marketing messages-points where poor relevance creates friction and reduces conversion.

AI and people

The research also touches on the role of AI in personalisation. Many consumers prefer a blend of automation and human involvement: nearly half said they want personalisation delivered through a combination of human associates and AI assistants.

The split suggests a trust and judgement issue as well as a technology one. Retailers are increasingly experimenting with AI tools for content creation, offer selection and customer service, but the findings indicate consumers still value a human element.

Australian focus

Amperity positioned the US results as relevant for Australian retailers, where personalisation is often a strategic priority but difficult to deliver consistently. It also cited separate Australia-focused research it participated in with Arktic Fox.

That study, Digital, Marketing & eComm in Focus 2025, found 88% of Australian retailers viewed personalisation as important or very important, while 57% of marketing leaders said their capability lagged the market.

It also found 59% of brands were experimenting with, or scaling, AI and generative AI in personalisation work. At the same time, it identified a mismatch between the goal of unifying customer data and investment in identity resolution. More than half of brands prioritised unifying data, yet only 25% treated identity resolution as a key investment area.

Amperity Area Vice President and General Manager for Australia Billy Loizou said this gap sat at the heart of underperformance in personalisation.

"For companies generating more than a billion dollars in revenue, unifying customer data was ranked as the top priority. But identity resolution barely made the list," Loizou said.

He linked identity work to the quality of outcomes retailers can expect from automation and AI-driven targeting.

"That's a real concern. You can't talk about a unified customer view if you don't know with certainty who the customer actually is. Identity resolution is what turns fragmented data into something usable. Without it, personalisation is guesswork and AI simply scales the noise.

"If retailers want real-time relevance that drives conversion and loyalty, they need to invest in the foundation first. Otherwise, they're building advanced capabilities on unstable ground," he said.

Budget pressure

The Australian research also pointed to resourcing constraints that could slow progress. Marketing and digital budgets stayed flat or declined over the prior 12 months for 78% of brands, and 65% cited balancing short- and long-term priorities as their biggest challenge.

Despite strong attention on AI, only 17% of Australian retail marketing and digital leaders said they were effectively leveraging AI to optimise digital content creation processes, suggesting experimentation does not always translate into operational change.

Loizou said retailers should focus investment on activities with measurable outcomes when budgets are tight.

"With budgets under pressure, retailers can't afford to invest in capabilities that don't convert," he said.

He said global consumer expectations and local execution barriers were creating a divide between retailers that can operationalise real-time relevance and those that cannot.

"The global findings reinforce what we're seeing locally. Real-time personalisation drives revenue, but only when the identity foundation is solid. The brands that get this right will grow. The ones that don't will keep wondering why their AI investments aren't paying off," he said.