--- title: "AI Activation Use Case: AI-Powered Propensity" id: "80256" type: "solution" slug: "ai-activation-use-case-ai-powered-propensity" published_at: "2025-01-02T20:26:48+00:00" modified_at: "2025-05-19T14:10:20+00:00" url: "https://tealium.com/developer-center/ai-activation-use-case-ai-powered-propensity/" markdown_url: "https://tealium.com/developer-center/ai-activation-use-case-ai-powered-propensity.md" excerpt: "OVERVIEW AI Activation Use Case: AI-Powered Propensity Create a real-time propensity data pipeline with Tealium AI Type: Traditional AI Key Industries: Retail, Financial Services, Travel & Hospitality, Healthcare What is Propensity Modeling? Propensity modeling uses data, analytics, and artificial intelligence..." taxonomy_solutions_department: - "AI" - "Data & Analytics" taxonomy_solutions_usecase: - "AI/ML Data Preparation" taxonomy_solutions_product: - "Tealium for AI" --- AI # AI Activation Use Case: AI-Powered Propensity Drew Halsch ### **OVERVIEW** ### **AI Activation Use Case: AI-Powered Propensity** **Create a real-time propensity data pipeline with Tealium** **AI Type**: Traditional AI **Key Industries**: Retail, Financial Services, Travel & Hospitality, Healthcare ### **What is Propensity Modeling?** Propensity modeling uses data, analytics, and artificial intelligence to predict the likelihood of specific customer behaviors, such as purchases, churn, or engagement. This approach enables organizations to make data-driven decisions to improve marketing, sales, and service outcomes by anticipating customer needs and preferences. Tealium facilitates this process by providing real-time data collection, integration, and activation capabilities, enabling businesses to build robust propensity pipelines. Organizations can leverage their own propensity models or use Tealium Predict to operationalize propensity scores across various channels. Tealium Predict is a [propensity modeling](https://tealium.com/glossary/#propensity-modeling) tool that uses machine learning to analyze customer data to create predictive attributes and audiences that drive more personalized, data-driven experiences. ### **USE CASE LEVELS** Propensity use cases can be completed at various levels depending on the technology available and the goal of the organization. Here is an overview of the use case levels: ### **Basic** Using static propensity models to segment customers based on predefined likelihood scores and use Tealium to trigger targeted campaigns. This level involves simple segmentation and campaign execution. ### **Advanced** Use Tealium Predict or integrate Tealium with an external propensity modeling tool to dynamically update scores and enable consistent, cross-channel execution of targeted campaigns. This level introduces greater agility and synchronization. ### **Real-time AI** Create a real-time data pipeline with Tealium and AI models for AI-powered propensity scoring. This advanced level enables organizations to adjust strategies instantly based on live customer behavior and interactions, maximizing responsiveness and relevance. ### **KEY BENEFITS** ### **Improved Customer Targeting** AI-driven propensity scoring enables precise segmentation, allowing businesses to focus on customers with the highest likelihood of conversion or churn. This ensures marketing and sales efforts are focused where they are most effective. ### **Real-Time Adaptation** Real-time propensity scores allow businesses to respond to customer behavior as it happens, delivering timely and relevant actions. This capability ensures businesses stay aligned with customer needs. ### **Higher ROI on Marketing Spend** By targeting customers more effectively, businesses can maximize their return on marketing investment through reduced wastage and improved campaign performance. ### **Enhanced Customer Experiences** Anticipating customer needs and delivering personalized offers or messages builds trust and loyalty, fostering long-term customer relationships. ### **Operationalizing AI Models** The Tealium AI pipeline enables organizations to seamlessly integrate and operationalize propensity models across marketing, sales, and service channels, ensuring alignment with business objectives. This integration ensures AI insights are actionable and impactful. ### **EXAMPLE USE CASES ACROSS INDUSTRIES** **Retail:**Predicting the likelihood of customers purchasing specific products and sending personalized promotions in real-time. **Financial Services:**Identifying customers likely to default on loans or churn, allowing for proactive interventions. **Travel & Hospitality:**Anticipating booking cancellations and offering alternative incentives to retain customer interest. **Healthcare:** Predicting the likelihood of a patient attending an appointment and scheduling reminders or follow-ups to ensure better health outcomes. Organizations leveraging AI-powered propensity use cases can transform customer engagement strategies by predicting behavior and delivering impactful, real-time actions. ### **ARCHITECTURE DIAGRAM** ### **Suggested Pipeline Components:** 1. **Data Collection:** Capture user interactions across digital touchpoints in real-time. 2. **AI Model Activation:** Use Tealium Functions to send the enriched data into AI models and return AI output to Tealium. 3. **Cross-channel Orchestration:** Distribute property model output across channels like email, SMS, and web personalization. ### **TECHNOLOGY USED** ### **Core Tools** **Tealium**: For visitor profiling, real-time data streaming, and cross-channel activation. **AI Models**: Traditional AI algorithms for propensity modeling. **(Optional) Propensity Vendors**: Platforms such as Tealium Predict for leveraging auto-ML for propensity scoring. ### **SUPPORTING TECHNOLOGIES** **Execution Channels**: Email, SMS, web personalization, mobile apps, and call centers. **Reporting & Analytics**: Tools to monitor and optimize pipeline performance. ## **Why Use Tealium for AI Data Streams?** Tealium provides businesses with a comprehensive framework to operationalize AI-driven propensity models effectively. Its ability to collect, unify, and activate data in real time ensures organizations can predict customer behavior with precision and act on those insights instantly. By integrating Tealium with AI models and propensity tools, businesses can anticipate customer needs, enhance targeting accuracy, and deliver personalized experiences that drive conversion, loyalty, and long-term growth. Whether in retail, financial services, travel, or healthcare, Tealium empowers organizations to unlock the full potential of AI-powered propensity modeling. ## Continued Learnings For more details on Tealium components mentioned in this article:[AIStream](https://tealium.com/products/aistream/) Drew Halsch RVP, Solutions Consulting ### Use Case AI/ML Data Preparation ### Products Tealium for AI ### Submitted! Thank you!