The AI Advantage for Smarter Marketing – A Primer

AI-powered marketing: Unlocking the Power of AI to Analyze, Predict, and Personalize

Analyst perspective

The introduction of ChatGPT in the late part of 2022, brought a lot of attention to marketers as ChatGPT made it easy for people to understand the capability of AI in a very tangible way. You asked the Large Language Model (LLM) a question and like magic you got answers. This is not easy for marketing leaders who are now under pressure to introduce AI into marketing and sales.

Some common misconceptions are that AI is a magic bullet that is easy to implement and has all the answers. Another misconception is that Generative AI is all that is AI. A third misconception is that this is all new.

A framework for marketing leaders to approach AI, focusing on its analytical, predictive, and generative applications. Recognize that AI implementation is a strategic decision that requires careful planning, execution, and evaluation to ensure its successful integration into the organization's operations.

Many companies like VMware have created cross-functional teams to explore, test, and prioritize the introduction of AI. Stay close to these three goals to increase revenue, retain customers, and keep employees happy.

Shashi Bellamkonda Principal Research Director High-Tech Marketing Info-Tech Research Group

“Marketers don’t need to enter 2024 worried that their jobs will be replaced by AI. I believe such fears are largely unfounded. The emotional connection that comes from storytelling and brand building is still a vital aspect of successful marketing strategies, and that requires a human touch. Instead, marketers should enter 2024 deeply considering how AI can help them push forward and achieve their objectives.

The new technologies will vastly enhance and even transform the way marketing can and should be done. If we don’t adopt new technologies, there is a real risk of obsolescence."

(Raja Rajamannar, Chief Marketing & Communications Officer and President, Healthcare Business, Mastercard. Author of Wall Street Journal bestseller “Quantum Marketing”)

Embrace AI or be left behind in the field of AI-powered marketing

AI democratized for marketers: Lower costs, broader availability, and easier access

Overview of AI

• AI's journey began in the 1950s, captivating sci-fi enthusiasts and researchers alike.
• The boundaries between fiction and reality have blurred as AI is becoming commonplace in our lives. From the intelligent assistants in our pockets to the algorithms that curate our news feeds.
• Years of groundbreaking research in deep learning, fueled by vast datasets, have propelled AI to unimaginable heights
• AI is no longer an exclusive club for tech giants. It has become accessible and affordable, empowering businesses of all sizes to tap into its transformative potential.
• Welcome to the age of AI, where the future is now a reality unfolding for marketers. Are you ready?

Note: Image inserted by Copilot

The hype: AI is everywhere

88% of marketers believe their organization must increase its use of automation and AI to meet customer expectations and stay competitive (Mailchimp 2023).

54.5% say AI will most likely greatly enhance their marketing efforts (Influencer Marketing Hub 2023).

For 49%, the main reason for not using AI yet is because of a lack of understanding and a high cost of implementation (Influencer Marketing Hub 2023).

22% of organizations use AI as conversational or virtual assistants, and 26% for Marketing and Sales (IBM Global AI Adoption Index 2022).

40% of businesses say that customer experience is their top motivator for using artificial intelligence (SEMrush Survey 2021).

95% of marketers who use generative AI for email rate it “effective” (CMS Wire 2023).

AI has been here for a long time

Affordable and accessible AI now allows businesses of all sizes to benefit, not just large corporations.

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  Waze: AI-Driven Traffic Insights

  Waze provides AI-powered features like real-time traffic updates, accident and road closure alerts, and predictive traffic and ETA.
• 

  Netflix: AI-Enhanced Content Experience

  Netflix provides personalized recommendations, enhanced search, and smart content creation powered by AI.
• 

  Uber: AI-Optimized Ride Matching

  Uber has been using AI to predict locations where calls are coming from, match riders and drivers, and provide route tracking.
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  Amazon: AI-Driven Personalized Shopping

  Amazon has been using AI to enhance customer experience with customized product recommendations, reviews, features, etc.

CAPITALIZING ON AI

AI Is Here: Get on Board or Be Left Behind

Welcome to the Era of AI:
Businesses vie for limited resources. Adopting new and better technology allows companies to shift away from an overcrowded market, where competition is fierce, and move into a new frontier of opportunity, where efficiency is increased and the opportunities for cost savings or revenue generation are abundant.

Don’t Delay:
The AI revolution is already happening. The AI inflection point started in 2023, and exponential growth will continue. You cannot afford to delay. AI isn't just an option to consider later; it is a strategic imperative we face today. Those who falter will be squeezed out of the ever-competitive market. Worse still, those who choose their path blindly risk investing in the wrong AI.

Prioritize High Value, High Readiness:
Don't delay. Drive revenues, save costs, and increase operational efficiency with the correct AI initiative.

2023 was the AI Inflection Point

“AI has been around for 40 years, but we have now reached the inflection point. AI is no longer an IT problem but a marketing opportunity.” (David Piazza, SVP Info-Tech Research Group, Marketing Advisory)

Grasping AI Fundamentals for Efficient Utilization

How AI works

Components of an AI system

Visualizing the building blocks of AI: An image-based guide to key components

The AI system's essential components include data collection, processing, learning through techniques such as ML, NLP, Generative AI, and Deep Learning. After the learning phase, a trained model is created and applied to production data. Finally, the AI system generates an output. This systematic approach highlights the importance of each stage in the process and helps marketers understand how AI-driven solutions work.