Managing the personalization paradox: Lessons from Spotify’s AI DJ

Abstract

This case study uses Spotify’s AI DJ to examine the “personalization paradox,” where product features designed to deepen user connection can instead cause alienation. An analysis of over 1,400 user comments identifies three core frictions: a perceived loss of user agency, mismanaged expectations for the human-like AI, and a scalability bottleneck that led to repetitive content. Students are placed in the role of a product manager tasked with developing a prioritized roadmap to address these issues, forcing them to grapple with the critical trade-offs between technological capability and user psychology.