By Rohit Khatua
The term “artificial intelligence” often evokes science fiction tropes of robots on a global domination mission. The reality of AI, thankfully, is far more nuanced and beneficial. While a 2023 US survey found that nearly half of consumers lack a clear understanding of AI and machine learning, its influence is already pervasive. Even as the world is discovering the quiet subliminal entry of AI into our daily lives, many of us are actively using AI already. From automotive companies to healthcare operations, online education, security operations, banking operations, retail businesses, e-commerce, social media, entertainment media – you name it – there isn’t a shore untouched by the waves of AI.
The Rise of AI-Driven Marketing
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Over the past decade, marketers have truly embraced AI’s potential to unlock deeper consumer insights. AI helps us understand behavioural patterns and tailor marketing strategies accordingly. Those personalized discounts and nudges you see online? AI at work, meticulously hyper-targeting individual users based on vast datasets. 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 accuracy. This personalization is achieved through a technique called “algorithmic storytelling using data ballet.” By analysing massive amounts of behavioural data, AI personalizes and optimizes marketing narratives, ensuring content resonates with specific audiences.
AI: A Tool for Speed, Creativity, and Efficiency
Today, AI is being deployed not just to be sharp and precise, but also to drive creativity, scale, and speed of execution. Gone are the days when creative teams would spend days ideating, iterating, and then rolling out mass media campaigns that would hopefully shake things up with consumers. Today’s fast-paced digital landscape demands efficient, targeted marketing. Social media ads, as crucial as they are in the marketing landscape at this time, are only fleeting, often lasting mere seconds before being skipped. In this environment, AI acts as a creative catalyst, generating content at scale and speed.
A recent survey revealed that 80% of marketers leverage AI for personalized customer journeys across various channels. Interestingly, the same survey found that 71% believe AI can outperform humans at specific marketing tasks, while 42% believe high-level strategy and decision-making will remain in human hands [2]. This highlights the power of AI as a tool to augment human capabilities, not replace them. AI can free up 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 endeavours [3].
- A staggering 19% of the respondents of a recent report, allocated over 40% of their marketing budget to AI-driven campaigns, indicating a strong belief in its return on investment [3].
The Human Element: Collaboration is Key
While AI automates many tasks, some marketers fear it might replace them entirely. However, the future of marketing lies in collaboration, not competition, between humans and AI. While AI excels at content creation, its role is to be “creative, not honest,” as one generative AI expert phrased it. The onus lies with humans to integrate AI responsibly and ethically.
A significant challenge is the lack of education and knowledge surrounding AI. As many as 34% of organizations cite this as a barrier to adoption [3]. Marketers with strong analytical skills and the ability to translate data insights 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 to work effectively alongside AI tools. Marketers who can leverage AI’s capabilities to automate repetitive tasks and gain deeper customer understanding will be well-positioned to thrive in the evolving marketing landscape.
Challenges and Considerations
One of the other biggest challenges lies in ensuring data quality and mitigating bias. Just as when it comes to cooking, the creations depend on the quality of ingredients, AI algorithms rely on clean, accurate data to function effectively. Biased or inaccurate data can lead to skewed results and marketing strategies that miss the mark entirely. Marketers will need to be vigilant about data quality and constantly evaluate their datasets for potential biases.
Also, as AI delves into the vast ocean of customer data, privacy concerns will also naturally arise. Marketers must take extra pains to navigate a sea of data privacy regulations, ensuring they obtain explicit user consent for data collection and usage. Transparency and responsible data practices are the anchors that build trust with consumers in this data-driven landscape.
Conclusion
The economic impact of AI on businesses is undeniable. Estimates suggest AI could contribute an additional $2-4 trillion to the global GDP by 2030. This transformative power extends beyond mere numbers. While the impact of AI on various sectors may differ, its ability to unlock significant economic growth underscores the fact that AI is not just a fad in marketing; it’s a transformative force fundamentally reshaping the industry. By embracing AI as a partner, marketers can unlock a new era of customer-centric experiences, fuelled by data-driven insights and powered by human creativity. This powerful synergy will be the driving force behind marketing success in the years to come.
The author is CMO, Max India and Antara Senior Care
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