A featured contribution from Leadership Perspectives, a curated forum for retail leaders, nominated by our subscribers and vetted by the Retail Business Review Editorial Board.

Good Sam

Sean MacCarthy, VP of Analytics

Handshake Your Way to AI Excellence

Sean MacCarthy

Sean MacCarthy

Sean MacCarthy is an analytics leader who helps businesses turn data into clear, practical decisions. He builds teams that deliver insights, automation tools and real results, saving time and boosting performance. Known for bridging strategy and execution, MacCarthy drives measurable impact across finance, operations and marketing.

If you want to succeed with AI and Data Science, adopting a simple yet effective architectural principle can significantly reduce complexity and improve efficiency: every system interaction must involve an exchange (handshake) of unique event IDs. Ideally, each interacting system should record both its own unique event ID and the corresponding unique ID provided by the other system. At a minimum, downstream systems must consistently record and inherit the upstream system’s unique transaction ID and relate it to their own unique transaction ID. This simple step removes the need for fuzzy matching between system events, greatly enhancing data accuracy and saving years’ worth of labor hours of intensive data cleansing efforts.

One of the greatest challenges in data science today is accurately aligning customer actions and interactions across diverse systems such as transactional, telephony, digital, inventory, logistics, marketing, CRM and CDP platforms. Without clear and explicit handshaking of unique transaction IDs, data scientists must rely on time-consuming, error-prone fuzzy matching processes, where even millisecond time stamp differences can cause massive drift and error over high frequencies or quantities.

Implementing a robust handshake process that exchanges unique IDs across system interactions is critical for real-time, personalized applications at an enterprise scale. Such an architectural approach ensures high-quality, aligned datasets, enabling precise and context-rich analytics and AI-driven solutions efficiently.

The benefits of this architecture extend across all types of data storage and retrieval systems, including traditional relational databases, as well as more advanced, AIfriendly solutions like vector and graph databases. This approach guarantees that all relevant events related to customers, employees or processes can be readily interconnected, substantially accelerating the training and deployment of accurate machine learning models.

Clear handshaking and exchange of unique IDs significantly simplify data governance, stewardship, lineage tracing and auditing processes.

Additionally, clear handshaking and exchange of unique IDs significantly simplify data governance, stewardship, lineage tracing and auditing processes. Transactions between systems become inherently traceable, enabling greater transparency and accountability.

Practical applications that illustrate the power of this approach include:

Call Center Optimization: Call center processes are typically the culmination of multiple systems—telephony, CRM, digital channels and transactional platforms— each offering distinct insights into agent and customer interactions. By employing explicit event ID handshakes, organizations can easily consolidate these insights, significantly enhancing churn prediction models, performance management and agent support via Agentic AI selling aids or support and resolution tools.

Real-Time Personalization and Advanced Marketing Models: Explicitly exchanging unique session, device and customer IDs across digital channels facilitates precise tracking and analysis of customer behaviors. This improves the accuracy of marketing attribution models (such as Multi-Touch Attribution [MTA] and Marketing Mix Modeling [MMM]), enhances real-time dynamic content personalization and ultimately drives higher conversion rates and customer satisfaction.

In essence, embedding this straightforward architectural principle from the outset ensures the IT systems are ready to leverage the full potential of AI and Data Science. It dramatically simplifies complexity, improves accuracy and delivers powerful analytical capabilities efficiently, ultimately positioning your enterprise for future success.

The articles from these contributors are based on their personal expertise and viewpoints, and do not necessarily reflect the opinions of their employers or affiliated organizations.