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The Modern Data Value Equation™ for Better AI Outcomes

Data clouds have revolutionized how businesses analyze, process, and store their historical customer data. To complete the ‘last mile’ of customer experience optimization, however, they need a complimentary system that provides real-time, enriched, and privacy-compliant behavioral data on those same customers. This combination enables enterprises to deliver the in-the-moment experiences today’s consumers expect, and which convert at the highest rates. 

As math geeks at Tealium, we think of this as the Data Value Equation™, where real-time first-party and zero-party data are raised exponentially ‘to the power of AI’ to generate Amazing Results.

DATA VALUE EQUATION™

RT*(1PD + 0PD)AI = AR 

The performance of AI-generated experiences and applications are directly tied to data quality. Modern enterprises need both the historical data and analytical power of Data Clouds combined with the immediacy of real-time data collection, enrichment, distribution, and activation of a trusted customer data platform (CDP). 

Tealium’s CDP enables the use of this powerful combination to accelerate AI outcomes. By cleaning, enriching, and standardizing data within the streaming pipeline, Tealium minimizes data wrangling and labeling costs and delays, and delivers data to AI models that will generate the best possible outcomes.

At our recent 2025 Digital Velocity conference, two real-world results were presented which illustrate the ‘Amazing Results’ possible with this combination:

  • Automotive Success: The Rohrman Automotive Group reported a 200% increase in conversion rates across their dealer network (from 10% to 30%) by implementing real-time first-party data collection to optimize experiences.
  • Omnichannel Retail: A major brick-and-mortar retailer achieved over 100% improvement in in-store conversion rates for targeted audiences by combining real-time point-of-sale data and classic digital marketing systems.

The Solution to the Equation: Tealium releases AIStream™ 

By seamlessly integrating real-time data capabilities with Data Cloud giants like Snowflake, Databricks, and AWS, Tealium is redefining how businesses can activate their AI initiatives.

Tealium AIStream™ offers data labeling, transformation, and enrichment within the streaming pipeline before it reaches the data warehouse. This ensures AI models are trained on consented, cleaned, and enriched data while also activating AI-driven insights from the data warehouse back into the real-time customer experience layer. With built-in identity resolution, AIStream™ allows businesses to maximize their AI outcomes while maintaining data compliance with the world’s most stringent privacy regulations. 

The CDP and Data Cloud: Better Together

While traditional Data Clouds excel at processing data at rest, Tealium’s solution introduces a layer of immediacy that transforms customer interactions from retrospective to real-time reactive. This means businesses can now respond to customer behavior as it happens – within milliseconds – not hours or days later.

Integrating AIStream™ with a Data Cloud removes the need for in-house development and allows companies to stay agile by testing and iterating rapidly as the dynamic digital world evolves – all while enforcing and complying with global privacy standards.

This combination also has the ability to make complex technical capabilities and AI-boosted outcomes more actionable. Even brilliant analysis without action delivers zero results. Tealium’s connector marketplace allows enterprises to take action in real-time and influence visitor journeys across all delivery channels as the in-session picture evolves. This means businesses can:

  • Scale their AI initiatives more effectively,
  • Enhance and unify customer profiles with real-time data,
  • Derive deeper analytics insights without sacrificing speed,
  • Maintain rigorous privacy compliance at the point of data collection, and
  • TAKE ACTION based on all of the above.

Looking Ahead: The Future of Customer Data and AI

Organizations equipped with advanced customer data solutions like Tealium’s AIStream™ are poised to adopt new AI technologies swiftly, execute sophisticated strategies, and maintain a competitive edge through data-driven innovation. For businesses investing in Data Clouds, these integration capabilities represent a strategic advantage in a market where real-time, privacy-compliant customer engagement is required. The examples above illustrate that value will rapidly accrue to companies who embrace the concepts embodied in the Data Value Equation and act on its potential.

Author

  • Jeff Lunsford

    Jeff Lunsford is the CEO of Tealium, the world’s first cloud-based Customer Data Hub for global enterprises, and Chairman of DefenseStorm, a real-time cyber safety and soundness platform for financial service providers. Jeff has three decades of experience as a Builder, having previously served as Chairman of nCino, a cloud banking pioneer; CEO of Limelight Networks, a global high-performance content delivery network; CEO of WebSideStory, the inventor of real-time web analytics that is now part of Adobe, and CEO of TogetherSoft, a software development tools company. Jeff received a B.S. in Computer Science from Georgia Tech and served in the U.S. Navy flying F/A-18 Hornets prior to becoming a serial technology entrepreneur and investor.

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