Conversational AI and Personalized Advertising: A New Frontier

Tuesday, February 13, 2024 by ezzcodeezzlife
Conversational AI and Personalized Advertising: A New Frontier

In the digital age, the intersection of conversational AI and personalized advertising presents a thrilling frontier for both marketers and technologists. This guide illuminates a possible path to integrating personalized ads within generative AI model conversations, a technique that promises to revolutionize user engagement by making interactions not only more relevant but also genuinely helpful. As we navigate through this journey, it's essential to understand that what we cover here is merely the tip of the iceberg. The realms of information extraction, profile building, and ad matching are vast, with much deeper nuances and complexities lying beneath their surfaces. Moreover, it's insightful to draw parallels with the current methodologies employed by search engines like Google, which have mastered the art of personalization through user search history and behavior analysis.

Introduction to the Art of Personalization in Conversational AI πŸ’‘

The essence of delivering personalized ads through conversational AI lies in creating a seamless integration of product recommendations and advertisements that resonate with the user's specific needs and interests, as revealed through conversation. This approach not only enhances the user experience by providing value-aligned suggestions but also opens new avenues for businesses to connect with their audience in a meaningful way. To bring this vision to life, we embark on a three-step process: extracting user interests from conversational text, matching these interests with relevant ads, and elegantly weaving these ads into the conversation.

Step 1: Extracting Keywords with spaCy

Our first step into this realm involves employing spaCy, a powerful and accessible NLP library, to analyze conversational text and identify keywords that reflect the user's interests.

Installation and Setup

Begin by installing spaCy and downloading the English language model:

pip install spacy
python -m spacy download en_core_web_sm

Keyword Extraction Process

With spaCy ready, we proceed to extract keywords from the conversation:

import spacy

# Load the spaCy English language model
nlp = spacy.load("en_core_web_sm")

def extract_keywords(text):
    # Process the conversational text
    doc = nlp(text)
    # Extract keywords, avoiding stop words and punctuation
    keywords = [token.text for token in doc if not token.is_stop and not token.is_punct]
    return keywords

# Sample conversational text
text = "I'm really interested in sustainable living and eco-friendly products."
keywords = extract_keywords(text)
print(keywords) # ['sustainable', 'living', 'eco-friendly']

# Another sample conversational text
text_ai = "Artificial intelligence is revolutionizing industries with machine learning and deep learning technologies."
keywords_ai = extract_keywords(text_ai)
print(keywords_ai) # ['Artificial', 'intelligence', 'industries', 'machine', 'learning', 'deep', 'learning', 'technologies']

This function serves as our initial foray into understanding the user's interests/topic of the conversation through the lens of conversational AI.

Step 2: Matching Ads with OpenAI Embeddings πŸ”—

Having identified the user's interests, we turn to OpenAI's embeddings to find ads that align with these interests, a process that tries to mirror the complexity and nuance of matching queries with relevant results in search engines.

Integrating OpenAI Embeddings

Ensure the OpenAI Python package is installed:

pip install openai

Then, match keywords to ads using OpenAI's embeddings:

def recommendations_from_strings(
   strings: List[str],
   index_of_source_string: int,
) -> List[int]:
   """Return nearest neighbors of a given string."""

   # get embeddings for all strings
   embeddings = [embedding_from_string(string, model=model) for string in strings]

   # get the embedding of the source string
   query_embedding = embeddings[index_of_source_string]

   # get distances between the source embedding and other embeddings (function from
   distances = distances_from_embeddings(query_embedding, embeddings, distance_metric="cosine")

   # get indices of nearest neighbors (function from
   indices_of_nearest_neighbors = indices_of_nearest_neighbors_from_distances(distances)
   return indices_of_nearest_neighbors

Step 3: Generating Conversationally Integrated Ads

The culmination of our journey is the artful integration of the selected ad into the conversation, ensuring it feels like a natural extension of the dialogue rather than an intrusive interruption. We will let the model handle this.

Crafting the Integration πŸ”¨

This is what a basic prompt would look like:

<system prompt>
weave the relevant ad information in the next message. ensure it feels like a natural extension of the dialogue rather than an intrusive interruption
</system prompt>

... conversation history of older messages ...

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This step underscores the importance of maintaining the conversation's flow, enhancing the user experience with timely and relevant product suggestions.

What the result looks like

Now, when everything is combined, we get a response message that looks like:

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Beyond the Basics: The Depth of Personalization

While this guide offers a foundational understanding of integrating personalized ads into conversational AI, the potential for deeper exploration and innovation remains vast. Advanced techniques in information extraction and profile building can lead to more nuanced understanding of user needs, while sophisticated ad matching algorithms can further refine the relevance of suggestions.

Reflecting on the Current State of Personalization

It's instructive to consider how these conversational AI strategies compare with the personalization techniques employed by search engines. Platforms like Google analyze a user's search queries and browsing behavior to tailor search results and advertisements. This level of personalization, while effective, is based on accumulated data over time. Conversational AI introduces a dynamic, real-time element to personalization, leveraging the immediate context of the conversation to offer suggestions that feel more spontaneous and directly relevant.


The integration of personalized ads within conversational AI models opens a new chapter in digital marketing, offering a more engaging, context-aware, and user-centric approach to advertising. As we stand on the brink of this exciting frontier, it's clear that the journey ahead is filled with opportunities for innovation, requiring a blend of technical skill, creative thinking, and a deep understanding of user experience.

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