Riding On The Generative Ai Hype, Cdp Needs A New Definition

Large Language Models (LLMs) and Generative AI (Gen AI) are transforming SaaS platforms, particularly Customer Data Platforms (CDPs) in martech, which are at the center of every customer experience (CX) management discussion. The CDP software market is expected to grow to $5.6 billion by 2026, and Gen AI and personalization would grow by three times during the same time. CDP vendors are looking to redefine customer experiences through the lens of new-age technologies, including Gen AI and LLMs, to redefine CDPs and change the way Martech users use the platforms for omnichannel CX management. According to CDP expert, Rabid Raab, the use of modern cloud data warehouse technologies has led to a subtle shift in the perception of the CDP’s purpose. By 2024, this “redefinition” movement of packaged and warehouse CDPs can be achieved and consolidated in the martech stack by utilizing LLMs for CDP and generative AI.