Kenyan businesses seeking to use artificial intelligence to boost sales risk missing out on its full potential without reliable customer data, technology entrepreneurs have warned.

The experts said businesses must move beyond generic marketing campaigns and use AI to understand customer preferences, anticipate demand and deliver personalised offers.

The Founder of MintyLime, an AI-driven creative agency Nyandia Gachago, said access to quality customer data would determine how effectively businesses translate investments in the technology into higher revenues and improved customer engagement.

Oscar Limoke, founder of technology startup focused on conversational AI and business automation Konversations, also noted that businesses could use first-party data collected through sales and retail partners to develop targeted marketing campaigns and identify opportunities to expand sales beyond traditional outlets.

“For me, a measurable income for you would be first-party data from sales that have been driven by your retail partners, with data businesses could feed customer information into AI systems to generate personalised offers,” said Limoke.

He cited the potential for businesses to analyse customer preferences and use the findings to recommend products suited to individual tastes, creating opportunities for repeat purchases and direct sales.

Such an approach could help manufacturers and retailers move beyond selling products through conventional distribution channels to developing personalised offerings for customers.

They were speaking during the Pawa IT Solutions Cloud & Coffee session, that sought to examine how Kenyan SMEs can scale through cloud technology, AI and automation.

Limoke said businesses could also use AI to create tailored recommendations and promotions that encourage customers to engage with brands regularly.

The technology could, for instance, help a business recommend products based on a customer's previous purchases rather than sending the same promotional message to its entire customer base.

Gachago said AI should also help businesses improve productivity, expand their capacity to handle more work and make better strategic decisions.

She argued that companies should assess the technology by examining whether it creates more time for employees to focus on creativity and strategy rather than simply automating existing processes.

“How to tell AI is effectively working in a company is when the humanity feels small, meaning, AI should free up time for human creativity and strategic thinking,” Gachago said

She added that businesses should be able to take on more work after adopting AI, while using predictive analytics to improve decisions.

The technology could help companies identify which products are running out, determine where demand is weakening and establish where additional marketing support is needed.

Gachago also pointed to the potential for businesses to use location-specific data to develop marketing campaigns that reflect differences in consumer preferences across neighbourhoods.

This could allow retailers to replace blanket advertising with targeted campaigns designed around local purchasing behaviour.

However, Limoke cautioned that AI is not a substitute for professional expertise, arguing that businesses still need to understand their products and customers to achieve meaningful results.