AI in Marketing: Revolutionizing Efficiency and Personalization - Netflix's AI Success Story

Abstract

Artificial intelligence (AI) has transformed the marketing landscape by enhancing efficiency, personalization, and decision-making processes. This paper explores the key contributions of AI to various marketing activities, highlighting its impact on how AI empowers marketers to personalize their efforts by analyzing vast amounts of customer data and tailoring experiences to individual preferences. Moreover, this paper employs a case study approach to analyze some of the issues associated with the AI tools adopted by Netflix, the global streaming giant that has embraced artificial intelligence to revolutionize its operations and deliver a personalized and engaging experience to millions of users. The results of this study verified that marketing procedures should involve methods that enhance the customer experience on their platform by providing useful and precise suggestions. These methods are implemented by the Recommender Systems. Cluster-based recommendation systems segment users in similar groups, improving the accuracy and the speed of the system. A second purpose of this paper is to explore the potential of improving recommender systems by experimenting with alternative clustering methods.