AI and Augmented Reality (AR): transforming customer engagement

AI and AR are making significant strides on their own in the customer engagement space. But what happens when they join forces? The possibilities are almost endless and something that marketing teams need to pay attention to.

Artificial intelligence (AI) and augmented reality (AR) are two of the most talked-about technologies of the last decade. Individually, both technologies have already impacted the business world in various exciting ways. However, the convergence of these disciplines promises to alter the marketing landscape and deliver a new era of customer engagement.

How AI can help AR realize its potential

AR seems to be perpetually on the verge of a mainstream breakout. Each year, it’s touted as the next big thing, but it doesn’t quite materialize.

There are many roadblocks to the mainstream adoption of AR. Some of the biggest include:

  • Cost: Developing AR hardware and software is expensive.
  • Technology: The devices are bulky, and developing software that looks and feels immersive is incredibly tricky.
  • Privacy: There are legitimate privacy concerns about offering up personal, biometric, and environmental data to big companies.

However, despite these hurdles, AR holds immense potential. More interestingly, AI might be able to solve many of these issues so that AR can deliver on its promise.

Here are a few of the ways that AI is changing AR.

AI, AR, and customer engagement

AI and AR are working together to provide better visual and auditory experiences for brands across many industries. As the technology matures, these experiences will only get better and better.

So, let’s examine the main areas where the synergy of AI and AR can improve customer engagement.

#1. Retail

Retail was one of the earliest adopters of AR. There are already a lot of interesting applications of AR, such as:

  • The IKEA Place lets customers see how furniture will look in their homes.
  • Sephora Visual Artist uses facial recognition so customers can see how makeup looks before purchase.
  • Snapchat’s AR mirror helps people virtually try on clothes and footwear.

Each of these examples is pretty good right now. But with better object recognition and animation, the process will become slicker, more realistic, and a credible option for a wide range of businesses.

In particular, AI could use customer data and preferences to provide personalized recommendations for clothes and other consumer goods. When paired with the ability to give really in-depth product demos, AR can be a big sales channel.

#2. Customer service

AR is already popular among field engineers who need to fix complex machinery and other systems. However, many consumer goods could benefit from a similar approach. For example, AI-powered AR could help consumers troubleshoot a wide variety of issues with technology, such as assisting people to learn to use tools with a mix of chatbot and overlaid AR guidance.

Customers already favor self-service options. Now, thanks to Intelligent AR, learning to use products will be easier for consumers, which will enable them to get more value from their purchases and further strengthen bonds between them and their customers.

#3. AR marketing campaigns

Considering user data privacy concerns, businesses need to prioritize first-party data to deliver relevant and personalized campaigns. A big part of getting consent for this data is offering some exchange of value. While eBooks, discounts, and webinars are all effective methods for getting customer data, AR games and experiences could really cut through the noise.

The idea here is that AI could help design these experiences. If we take the example of Sona, it’s not too hard to imagine a world where the right prompt engineering could develop brand-specific AR experiences that could mix entertainment and education.

The Pepsi Max Bus Shelter campaign was a great example of what you can achieve with AR. This guerilla marketing campaign overlaid incredible and out-of-the-ordinary events on top of a screen that users believed was glass, blurring the line between reality and fiction.

While extensive campaigns like this were only possible for giant corporations, AI should reduce the costs involved in producing something in the same ballpark, allowing small businesses to be more innovative with their marketing.

#4. Location-based campaigns

Most businesses can’t afford to buy advertising space at major cultural events. However, AR could provide a way to raise brand awareness without breaking the bank.

Festivals, concerts, and other events could sell virtual spaces to brands and distribute these images over AR headsets as attendees walk around the venue. When paired with AI, that could mean delivering targeted and highly relevant ads based on user preferences, past purchases, interests, and so on.

#5. Social media filters

Depending on your age, you’ll find social media filters fascinating or ridiculous. However, if your brand is youth-oriented, you can offer AR filters that are fun, engaging, and highly shareable across social media.

The right filter, emblazoned with your company branding, could reach millions of people thanks to social sharing. So take advantage of people’s desire to post photos of themselves and your brand could hitch a ride as the image travels around the world.

Final thoughts

AR adoption rates are still quite low, and it’s still seen as something of a fringe technology. However, experts suggest that worldwide AR and VR users will total around 3.5 billion by 2029. In other words, explosive growth is expected at some point over the next few years.

The fusion of AI and AR means product costs and development times will reduce while quality and realism will rise. Offering AR experiences could mean getting an edge on your rivals and winning the trust and loyalty of a new generation of consumers. This time, the promise about AR might turn into reality.

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