The Fine Line Between 'Helpful' and 'Haunting'
By 2026, AI-driven personalisation is no longer a luxury for Brisbane businesses; it is the baseline. However, as the technology has matured, so has consumer sensitivity. We have moved past the era where simply inserting a first name into an email was impressive. Today, the risk has shifted from being irrelevant to being intrusive.
At Local Marketing Group, we see many Australian SMEs falling into the 'Uncanny Valley' of marketing—a space where AI knows so much about a customer’s intent that the interaction feels predatory rather than proactive. If your marketing makes a customer wonder, "How did they know I was thinking about that?", you haven’t succeeded in personalisation; you’ve failed in privacy. Understanding mastering personalisation at scale is essential to avoid these pitfalls.
Here are the most common AI personalisation mistakes we see in the current Australian market and how you can avoid them.
1. Predicting Life Events Before the Customer Discloses Them
One of the most significant mistakes is using predictive analytics to identify 'sensitive' life changes—such as pregnancy, health issues, or financial distress—before the customer has explicitly shared that information with your brand.
The Mistake: Sending a 'Congratulations on your new arrival' discount code to a customer who has only changed their search behaviour but hasn't browsed your 'Baby' category yet.
The Solution: Focus on 'Explicit Data' over 'Inferred Sensitivity'. Use AI to personalise based on what they have actually done on your site (e.g., viewed a specific product three times) rather than what the algorithm guesses is happening in their private life. In Australia, where Privacy Act reforms have tightened the definition of sensitive information, this isn't just a marketing tip—it’s a compliance necessity.
2. The 'Omnipresent' Retargeting Loop
We’ve all experienced it: you look at a pair of RM Williams boots once, and suddenly they follow you from your Facebook feed to a news site, and then into your Instagram Stories for three weeks.
The Mistake: Failing to set 'Frequency Caps' or 'Burn Pixels' in your AI automation. When an ad follows a user too aggressively, it creates a feeling of being surveilled. This is particularly jarring for Brisbane locals who value a more relaxed, authentic brand connection. This is a common reason why your marketing automation might be leaking revenue and damaging trust.
The Actionable Fix: Implement 'Contextual Personalisation'. Instead of showing the same product repeatedly, use AI to show complementary content. If they looked at boots, show them a blog post on 'How to care for Australian leather' or a showcase of local Brisbane walking trails. It provides value without the 'stalker' vibe.
3. Using 'Deep Personalisation' Without Contextual Relevance
AI allows us to scrape vast amounts of data, but just because you can use a piece of information doesn't mean you should.
The Mistake: Referencing specific, non-relevant data points in your communication. For example: "Hi Sarah, since you usually shop at our Indooroopilly store on Tuesday mornings, we thought you'd like this..."
This feels like a breach of privacy. It signals to the customer that you are tracking their physical movements and habits with clinical precision.
The Solution: Use 'Aggregated Personalisation'. Instead of calling out their specific routine, use that data to optimise your backend operations. Use the insight to ensure the Indooroopilly store is well-staffed on Tuesday mornings or that the stock Sarah likes is available, rather than telling her you know she’s there.
4. The 'Ghost in the Machine' Syndrome
In 2026, customers know they are interacting with AI, but they hate it when a brand pretends otherwise.
The Mistake: Using AI to mimic human empathy in a way that feels manufactured. This often happens in automated customer service or 'personalised' video messages where the AI voice or avatar is slightly off, creating a sense of distrust.
The Solution: Be transparent. Lead with utility, not mimicry. Use AI to solve problems faster—finding a tracking number or reordering a previous lunch order—rather than trying to 'bond' with the customer through simulated emotions. Many businesses are finding success by scaling social without losing soul to maintain that vital human connection.
5. Ignoring the 'Privacy Paradox'
Australian consumers are unique; we are historically quite open to sharing data if we get a clear benefit (the 'Privacy Paradox'), but we are incredibly quick to 'cancel' a brand that oversteps.
The Mistake: Hiding your AI data usage in a 40-page T&C document.
The Actionable Fix: Use 'Just-In-Time' Disclosures. When asking for data that will feed your AI, explain exactly why. "Tell us your favourite coffee style so our AI can suggest new blends you'll actually enjoy." This creates a value-exchange that feels like a partnership rather than a data grab.
How to Audit Your AI Personalisation Today
To ensure your Brisbane business stays on the right side of the line, implement these three checks immediately:
1. The 'Mum Test': If you explained your AI targeting logic to your mother (or a non-tech-savvy friend), would she find it helpful or would she find it 'creepy'? 2. The Opt-Out Audit: Is it as easy for a customer to 'reset' their AI profile as it is for them to sign up? Providing a 'Personalisation Preferences' dashboard builds immense trust. 3. Data Minimisation: Review your AI inputs. Are you collecting data 'just in case', or is every data point used to provide a specific, tangible benefit to the end user?
Conclusion
Personalisation is the most powerful tool in the modern marketer's arsenal, but it requires a human touch to manage the AI. By focusing on transparency, utility, and respect for boundaries, your business can create experiences that delight customers without making them feel like they are being watched.
At Local Marketing Group, we specialise in helping Australian businesses implement cutting-edge automation that respects the local culture and privacy expectations.
Ready to refine your automation strategy? Contact us at Local Marketing Group to discuss how we can help you scale your personalisation without losing the human connection.