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Personalization Done Right

Karen Knorr

The Spotify app knows what you want to hear. It uses AI to process a vast array of your engagement data, including the songs, podcasts, and audiobooks you’ve listened to, when you listened to them, and what led you to them. Its library is tagged by genre, era, tempo, mood, and a long list of other characteristics. The tags allow Spotify to collate playlists based on your listening habits. The app is always learning, constantly running micro tests with user groups. Spotify attributes a large part of its success to its personalized recommendations—its user base and revenues have both increased by 1,000% in the past decade to more than 600 million users and $14 billion, respectively.

A version of this article appeared in the November–December 2024 issue of Harvard Business Review.

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