AI Is Only as Smart as Its Signals: Why Identity Comes First

By Chris Hogg, Chief Revenue Officer, Lotame

 

AI-powered tools promise smarter targeting, faster insights, and better business outcomes.

But without a durable, privacy-first identity strategy, they can’t deliver.

Why? Because the data these tools run on is typically incomplete, inconsistent, or disconnected.

The fragmentation of media means that while signals arrive from dozens of directions at once, they rarely cohere into anything meaningful. Instead of a clear, unified view of the customer, marketers get an inconsistent blur. And AI models trained on blurry data — not surprisingly — give you blurry results at best.

Garbage In, Garbage Out Applies to AI too.

Across the entire AI industry, there’s an endless demand for high-quality data because everyone knows that AI tools require high-quality, consistent inputs to deliver on their promise. Everything about it, from training a model, making predictions, or delivering personalized experiences hinges on the strength of the underlying data.

The more fractured and siloed your data, the worse your results — and media fragmentation inevitably weakens performance, measurement, and trust.

When platforms each define identity differently, marketers can’t unify the customer journey, validate outcomes, or pinpoint which signals are driving success.

There’s a better way.

The Power of Identity

 By themselves, email addresses or hashed IDs are a great foundation and starting point. To extend their usefulness or in the absence of those IDs, identity needs to weave together behavioral, contextual, and declared data to build a privacy-forward, future-proof view of the consumer.

Each piece of this plays a vital role. Behavioral data shows what people do. Contextual data adds relevance. Declared data, such as loyalty profiles or preference centers, adds intent.

Lastly, your solution needs to focus on data interoperability, to deliver identity frameworks that are flexible enough to work across devices, platforms, and even different regulatory environments.

Put them all together, and now you have exactly what AI needs to drive real results. That’s the power of identity.

Without interoperability, even the best identity strategies fall short. Marketers need systems that adapt fluidly across platforms, devices, and regulatory borders — otherwise, AI efforts will stall before they start.

The Walled Gardens Want Higher Walls. But Marketers Must Take the Lead.

The platforms, hoping to drive lock-in, naturally want to define identity within their own walled gardens. If you can only identify a consumer within their walls, it’s hard to advertise outside it.

As a marketer, you should hurry to preserve your ability to advertise to a defined consumer no matter what media they consume. Relying on platform-defined identity would mean giving up visibility, portability, and long-term ownership of customer relationships.

Brands that lead with their own identity strategy — one that travels across ecosystems and is reinforced by both first-party and responsibly sourced third-party data — gain the flexibility to scale AI without compromise. It’s also the only way to protect consumer trust and ensure compliance in a privacy-first world.

The Risks of Standing Still

As identity signals degrade and AI adoption accelerates, marketers who lack a strong foundation will fall behind. Their models will underperform, personalization efforts will miss, and measurement frameworks will collapse under scrutiny.

Even worse, they’ll lack the tools to diagnose what went wrong because the signal chain will be too fractured to trace.

What Marketers Should Do Next

The path forward starts with asking the right questions:

  • Do we have a clear view of how data flows across platforms?
  • Are we collecting behavioral, contextual, and declared data in a privacy-compliant way, and integrating it effectively to support AI-driven decisions?
  • Can our AI tools trace outcomes back to unified identity signals?
  • Do we have a cross-functional owner responsible for managing how data is collected, connected, and applied across the organization?

Identity isn’t a side initiative, or a “nice-to-have”. It’s the backbone of your AI strategy, your customer experience, and your competitive advantage.

If you want to be an AI-first marketer, you have to put identity first.

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