By Rohit Khatua
The term “artificial intelligence» often evokes science fiction tropes of robots on a mission of world domination. Fortunately, the reality of AI is much more nuanced and beneficial. Even though a 2023 US survey found that nearly half of consumers lack a clear understanding of AI and machine learning, their influence is already pervasive. Even as the world discovers AI’s unobtrusive subliminal entry into our daily lives, many of us are already actively using AI. From automakers to healthcare operations, online education, security operations, banking, retail, e-commerce, social media, entertainment media – you ‘call it – there is no shore untouched by the waves of AI.
The rise of AI Marketing
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Over the past decade, marketers have truly harnessed the potential of AI to gain deeper insights into consumers. AI helps us understand behavior patterns and adapt marketing strategies accordingly. Those personalized discounts and nudges you see online? AI at work, meticulously hyper-targeting individual users based on vast data sets. This extends to visual content as well. The product recommendations and ads you see on your phone may be entirely different from what everyone else in your family sees – a testament to AI’s ability to personalize the user experience with pinpoint precision. This personalization is achieved through a technique called “algorithmic storytelling using data ballet”. By analyzing massive amounts of behavioral data, AI personalizes and optimizes marketing stories, ensuring content resonates with specific audiences.
AI: a tool for speed, creativity and efficiency
Today, AI is deployed not only to be accurate and precise, but also to drive creativity, scalability, and speed of execution. Gone are the days when creative teams spent days imagining, iterating, and then rolling out mass media campaigns that would hopefully make a difference with consumers. Today’s rapidly evolving digital landscape demands effective and targeted marketing. Social media ads, as crucial as they are in today’s marketing landscape, are fleeting, often lasting only a few seconds before being ignored. In this environment, AI acts as a creative catalyst, generating content at scale and quickly.
A recent survey found that 80% of marketers leverage AI to personalize customer journeys across channels. Interestingly, the same survey reveals that 71% believe AI can outperform humans in specific marketing tasks, while 42% believe strategy and high-level decision-making will remain in the hands of humans (2). This highlights the power of AI as a tool to augment human capabilities, not replace them. AI can free marketers’ time from repetitive tasks like data analysis and content creation, allowing them to focus on strategic initiatives and the irreplaceable human touch of creativity and intuition.
The impact of AI on marketing in numbers
- 61% of marketers have already used AI in their marketing activities.
- 44% have used AI for content production, demonstrating its role in creative marketing efforts (3).
- A staggering 19% of respondents in a recent report allocated more than 40% of their marketing budget to AI-powered campaigns, indicating strong confidence in its ROI (3).
The human element: collaboration is key
Although AI automates many tasks, some marketers fear it will replace them completely. However, the future of marketing lies in collaboration, not competition, between humans and AI. Although AI excels at creating content, its role is to be “creative, not honest,” as one generative AI expert put it. It is up to humans to integrate AI responsibly and ethically.
A significant challenge is the lack of education and knowledge around AI. Up to 34% of organizations cite this as a barrier to adoption (3). Marketers with strong analytical skills and the ability to translate gathered information into actionable strategies will be more in demand than ever. AI excels at crunching numbers and identifying patterns, but it lacks the human touch of creativity, empathy, and strategic thinking. The key lies in developing the skills needed to work effectively alongside AI tools. Marketers who can leverage AI capabilities to automate repetitive tasks and better understand customers will be well-positioned to thrive in an evolving marketing landscape.
Challenges and Considerations
One of the other biggest challenges is ensuring data quality and mitigating bias. Just like in cooking, creations depend on the quality of ingredients, AI algorithms rely on clear and precise data to operate efficiently. Biased or inaccurate data can lead to skewed results and marketing strategies that completely miss the mark. Marketers will need to be vigilant about data quality and constantly evaluate their data sets for potential bias.
Additionally, as AI explores the vast ocean of customer data, privacy concerns will naturally arise. Marketers must work harder to navigate a sea of data privacy regulations, ensuring they obtain explicit user consent for data collection and use. Transparency and responsible data practices are the pillars that build consumer trust in this data-driven landscape.
Conclusion
The economic impact of AI on businesses is undeniable. Estimates suggest that AI could contribute an additional $2-4 trillion to global GDP by 2030. This transformative power extends beyond mere numbers. Although the impact of AI on different sectors may differ, its ability to generate significant economic growth highlights the fact that AI is not just a marketing fad; it is a transformative force that fundamentally reshapes the industry. By adopting AI as a partner, marketers can usher in a new era of customer-centric experiences powered by data-driven insights and fueled by human creativity. This powerful synergy will drive marketing success in the years to come.
The author is CMO, Max India and Antara Senior Care
