The challenges of using AI in personalized marketing include concerns over data privacy and the potential for bias in algorithms. Companies must navigate regulations like GDPR, ensuring consumer data is handled respectfully and transparently. Additionally, achieving true personalization can be complex, as consumers may have varying preferences that are difficult for AI to accurately interpret. There is also the risk of oversaturation, where consumers feel overwhelmed by targeted ads. Balancing automated insights with human creativity remains a significant hurdle for marketers aiming to engage audiences effectively.