I recently joined the Beyond Encryption podcast to discuss how organisations in regulated industries can use first-party data and AI to transform customer communications. It was a great opportunity to share my perspective on the challenges highly regulated organizations face, the frameworks that work for them, and the innovations that are making personalisation more effective and compliant.
Over more than two decades in this industry, one thing has never changed. Customer expectations always move faster than most organisations are ready for. Technology shifts, from mobile to AI, transform how people interact with brands almost overnight. For regulated firms such as banks and insurers, this creates both an enormous challenge and a unique opportunity.
At Precisely, we work with over 95 of the Fortune 100. The common thread across these companies is the untapped potential of their first-party data. That data, from statements, balances, and transactions to policy renewals and customer preferences, holds the key to delivering experiences that feel relevant, timely and human. Yet many organisations still struggle to unlock it.
Why First-Party Data Matters More Than Ever
Consumers can tell the difference between surface-level personalisation and meaningful engagement. A misfired greeting can damage trust, while thoughtful use of customer signals such as recognising when someone regularly dips into overdraft or predicting when a policyholder might benefit from additional cover can strengthen relationships.
This is not about third-party cookies or tracking people across the internet. It is about using the data customers already share with you, responsibly and transparently, to create real value. Location data, billing history and usage patterns can all help organisations deliver higher-value conversations.
The Framework for Success
When I speak with leaders in regulated industries, one question comes up time and again: where do we start? I believe there are three critical components every organisation needs.
- Confidence in data. Without trusted, accurate data, personalisation efforts collapse. If you do not know where your customer data originates, or it takes twelve systems to piece it together, you are building on sand. Fix that first.
- Customer experience intelligence. Move beyond one-size-fits-all. Different people want different types of communications at different times. You need the framework to deliver the right message, on the right channel, at the right moment.
- Unified platforms and governance. Particularly in regulated sectors, governance and auditability are non-negotiable. A single platform for communications allows firms to adapt quickly to new rules, channels and customer expectations without compromising compliance.
Using AI for Real-Time Personalisation in Customer Communications
Many people still think of AI in customer communications as being limited to chatbots. While conversational AI is powerful, the real transformation comes from combining AI with first-party data to deliver experiences that are meaningful and real-time.
Imagine replacing yesterday’s news, the monthly statement, with insights delivered in the moment, through the customer’s preferred channel. Alerts, offers, and guidance become fingertip-accessible, reducing frustration and building loyalty.
However, it is important to acknowledge that only about 12% of organisations today feel their data is truly ready for AI. Before rushing into autonomous, agent-driven AI, firms must first establish a solid foundation of trusted, well-governed data.
Balancing Innovation and Regulation
In regulated industries, caution is natural. Some firms are eager to adopt AI, while others still include “no AI” clauses in contracts. Both approaches are valid, and as a vendor we have a responsibility to meet organisations where they are, helping them innovate responsibly at a pace they are comfortable with.
Regulation is not designed to stifle progress. Done right, it provides clarity and guardrails that make it possible to innovate with confidence, ensuring fairness, transparency, and trust.
Starting the Journey
If you are just beginning to modernise your customer communications, here are four steps I recommend.
- Establish ownership and governance of your data. Know where it comes from, who controls it, and how current it is.
- Prioritise privacy and compliance. Always start with what you are allowed to do and why.
- Leverage additional data sources such as location or risk signals to enrich customer understanding.
- Build for scale with AI in mind. Once the data foundation is solid, you will be ready to use AI to accelerate personalisation and engagement.
This is not about chasing the latest shiny technology. It is about building trusted, long-term relationships with your customers.
Looking Ahead
One of the most exciting innovations I have seen recently is making complex capabilities such as APIs accessible through natural language interfaces. By lowering the barrier to entry, we enable more people across the business to innovate, not just developers. That democratisation of technology has enormous potential for improving customer experiences.
At Precisely EngageOne, our role is to help organisations move from siloed, legacy systems to unified, intelligent platforms that make customer data more actionable and accessible. With Engage, we are enabling regulated firms to deliver communications that are not only compliant but also meaningful, timely and trusted.
For a deeper dive, download our eBook: How to Leverage Data to Build Meaningful Relationships with Customers.
