Fullstory’s research shows 41% of executives use AI only as a supporting tool for delivering personalized shopping experiences

Fullstory, a leading behavioral data company, unveiled findings from its 2025 Behavioral Data and AI Landscape Report. The report surveyed over 400 technology leaders to examine their organizations’ preparedness for key digital transformation challenges like AI, data regulations, and privacy restrictions. The research reveals that many companies are moving beyond traditional data collection to focus on tech-driven personalization. But with 41% using AI only as a supporting tool, there’s plenty of room for improvement.

Real-Time Personalization
More than half (51%) of businesses lag behind or have yet to prioritize real-time personalization. Only 12% of respondents consider themselves leaders in this area, while 37% say they feel they are keeping up with the market.

Companies that are currently implementing real-time personalization are doing so through product recommendations based on user profiles or behavior (65%), tailored promotions (54%), and visual content (53%). Just over one-third (35%) use AI-driven chatbot responses for personalization.

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“Our research tells us that AI is playing a supporting role rather than serving as the primary driver of personalization,” said Lindsay Bayuk, CMO at Fullstory. “There’s a significant gap between AI potential and execution across enterprises. The good news is that businesses have a tremendous opportunity to improve their customer experience and anticipate buyer needs—especially the 25% who don’t use AI for personalization at all.”

AI and Executive Trust
As AI becomes more embedded into decision-making, executives must balance its potential for innovation with the risk of AI hallucinations. Nearly two-thirds are cautious, with 63% relying on AI only in low-risk areas. Meanwhile, 17% say they fully trust AI but will maintain human oversight, while 9% are scaling back usage until model efficiency improves.

Looking ahead, 68% expect to see significant to transformational changes in how machine learning and AI models are trained and trusted over the next one to three years. In contrast, only 10% anticipate minimal or no change in this area.

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Data Regulatory and Privacy Restrictions:
Navigating data regulations and privacy restrictions is expected to become one of the industry’s biggest challenges in the next one to three years. Today, only 5% of executives see it as their top challenge. But looking ahead, 37% of respondents predict a moderate shift in regulatory challenges, while 24% foresee significant changes. Meanwhile, 24% expect minimal impact, and only 9% believe there will be no change at all.

These findings highlight the ongoing challenges businesses face in navigating digital transformation. Leaders must take a “yes, and” approach, staying informed on evolving regulatory policies while continuing to prioritize customer experience.