Artificial intelligence in marketing is all the rage these days. In fact, AI is even being used to analyze the content of digital ads and measure the success of traditional methods.
It’s no wonder that marketers are turning to this technology: in recent years, it has proven capable of improving efficiency and accuracy across a wide array of areas including website optimization, audience segmentation, digital advertising strategy development and execution, and more.
However, as its popularity grows, so too do concerns about the ethics of AI. There’s a notable shortage of information about AI in marketing and related fields and a lack of clear guidelines for how it can be used by businesses.
Benefits Of Artificial Intelligence In Marketing
AI marketing strategy is a form of marketing that uses predictive analytics and marketing tools to create a marketing strategy. It is a relatively new form of marketing, but it is growing in popularity due to its ability to create more personalized and targeted marketing campaigns.
Artificial intelligence (AI) in marketing was predicted to have a 15.84 billion USD market in 2021. By 2028, the value, according to the estimate, will surpass 107.5 billion.
Digital marketing is the use of electronic devices to create, promote, and deliver marketing messages. It includes the use of email, websites, social media, and other digital channels to reach potential and current customers.
Many businesses use AI tools to automate customer journey processes and dynamic pricing. Natural language processing is used to analyze customer sentiment and feedback.
1. AI Is More Accurate Than Humans
One of the first reasons for marketers to employ AI technology is precisely because it is more accurate than humans. Machine learning and big data analysis are highly complex areas of study and understanding, but since they rely heavily on computers and numbers, they’re much easier to train and work with than humans.
Smart machines can be trained to detect patterns, recognize anomalies, find correlations and make predictions in ways that are impossible for people.
2. AI Can Create New Products
In total, the artificial intelligence business was estimated to be worth 327 billion dollars worldwide in 2021.
Artificial intelligence can serve as a sort of virtual “Wizard of Oz” figure who can create new products based on observed trends in customer behavior. Such products are often based on existing ones, but modified in some way to suit the needs of a changing customer base.
3. AI Can Recognize Patterns
Artificial intelligence has the ability to find and analyze patterns in large data sets that might otherwise be missed by marketers and business owners. AI is able to see trends or relationships in huge datasets that no human being could ever hope to process.
It can also recognize anomalies that might signal problems down the road for a business, such as unhappy customers who aren’t responding well to a certain message or product feature.
4. AI Can Transform A Business
AI-based marketing solutions are designed to help businesses increase efficiency and effectiveness. AI is capable of finding and analyzing patterns in large data sets, finding outliers and spotting trends that would otherwise go unnoticed. Once it has identified these changes, it’s able to implement better systems to efficiently serve customers.
5. AI Can Improve Business Processes
In a recent poll, about 50% of participants from the United States, Canada, the United Kingdom, and India highlighted ad targeting when asked about the key applications of AI for marketers.
Businesses have been struggling with automated processes for years now, but the advent of big data analytics has helped the whole process become more efficient. For example, AI-powered bots can handle routine tasks such as filling out online forms or filing invoices so that human resources can focus on other tasks that are more important and meaningful.
6. AI Can Automate Repetitive Tasks
AI-powered software can schedule and execute repetitive tasks that would otherwise be handled by humans. For example, AI could replace the need for a business’s receptionist to handle routine questions from customers or even manage simple conference calls.
While some of these functions may require a certain amount of human input, artificial intelligence is often able to perform them with less overhead and time spent on repetitive tasks.
7. AI Can Alert Humans To Dangerous Situations
Artificial intelligence is an especially effective tool for identifying potential dangers in a business’s operation, whether it’s fraud or other types of potential harm.
AI is capable of constantly scanning customer data and identifying potential problems, so that human employees can react in real time to prevent them from turning into explosive situations.
8. AI Can Reduce Business Liability
As a common example, AI could work alongside human employees to review actions before they are conducted. AI can be programmed to communicate with robots and other devices on the businesses’ networks and alert humans when it notices an event that could cause harm, such as a dangerous transaction or interaction with customers or suppliers.
This could help keep businesses from being held liable for certain events even if they have inadequate safety procedures in place.
9. AI Can Optimize Advertising
A considerable competitive edge over their rivals has been made possible by artificial intelligence, according to 26% of all respondents and 45% of seasoned AI adopters.
Artificial intelligence’s ability to find patterns and correlate data is a major advantage in the world of advertising. AI can help businesses more effectively target customers by honing in on behavioral characteristics that are shown to convert. It can also help formulate more personalized ads based on observed customer preferences.
10. AI Can Build Tools
Many entrepreneurs have only begun to scratch the surface when it comes to artificial intelligence technologies, but they’re already capable of producing useful tools for marketers and others who work with big data.
For example, AI-powered chatbots may be used by customer service managers who are overloaded with questions from customers, or a content marketing team might use them to increase engagement through social media interactions.
Risks Of Artificial Intelligence In Marketing
As artificial intelligence increasingly becomes a staple in marketing tools, it’s important to know how to utilize this data-driven technology to your company’s advantage. After all, AI can help with everything from data collection to providing valuable insights that can shape marketing strategies.
When it comes to customer experience, AI can be a powerful tool for creating personalized experiences at scale. And when used correctly, AI can help you glean valuable insights about your customers and your business.
1. AI Can Be Biased
While artificial intelligence has the ability to help businesses increase efficiency and customer satisfaction, it also poses a threat to their profitability. AI is based on “training” data that is fed into algorithms as training sets, and these training sets may be biased.
For instance, if a company only looks for patterns in data from white men between the ages of 35 and 55, then the AI is not reflecting its entire customer base.
2. AI Can Make Bad Predictions
Artificial intelligence has been known to create models that are inaccurate or just plain inaccurate at predicting certain events. There are a number of reasons for this, but one of the biggest problems is that AI models can be very complex.
When they are accurate, it’s easy to assume that they’re accurate across the board. However, they can take into account so many factors that it’s impossible to know whether or not an AI model could fail in certain situations.
3. AI Can Create Fake News
According to Deloitte research, 64% of AI adopters think that AI technologies help businesses gain an advantage over rivals, and 73% of AI adopters say that AI is “very” or “critically” vital to their organisation today.
Artificial intelligence doesn’t just have the ability to spot fake news – it can create it. Fake news is created by feeding biased data into algorithms and using those results to form opinions and conclusions about events and people in ways that aren’t always accurate or truthful.
4. AI Can Create Biased Content
Marketers can use artificial intelligence to help them create more effective message content, but because of the potential for bias, it’s also possible for it to cause harm.
For example, if a company creates an AI-driven chatbot that helps engage with customers on social media, it could end up creating posts and advertising that are offensive or simply not relevant to the customer.
This kind of artificial intelligence is often based on the interactions by humans and may not always understand nuanced language or different cultures.
5. AI Can Make Mistakes During Training
One of the most common problems with AI is that it makes mistakes during training cycles, even when those mistakes are corrected later in development. Many of these problems are the result of programming errors or inconsistencies in the process.
For example, an automated email campaign may seem to be sending successfully, but AI may use certain trigger words that are a source of confusion. This can cause the emails to bounce back, and the AI will never have a chance to learn from its mistake.
6. AI Can Be Unpredictable
Because it’s so powerful, artificial intelligence can make incorrect decisions that are not only difficult to identify but potentially damaging for a business’s reputation.
For example, if an advertiser uses an artificial intelligence-based tool for customer outreach, there could be something about its service that causes individuals who receive its messages to avoid buying products or services altogether.
7. AI Can Lack Empathy
Artificial intelligence is not human, so it doesn’t have human senses such as touch, smell and sight. This can make it difficult for AI to understand the feelings of its customers – or even the feelings of the people who are responsible for creating it.
For example, an artificial intelligence system that is supposed to measure customer satisfaction may not account for nuances such as service recovery or cross-selling that could help boost customer satisfaction scores.
8. AI Can Lead To Bias Against Certain Groups
Currently, just 19% of businesses use AI and machine learning for B2C personalisation. The IBM-commissioned Forrester study also revealed that 55% of businesses feel that their capacity to deploy customization strategies is constrained by technological limitations.
Just as artificial intelligence has the ability to create bias in content and advertising strategies, it also has the potential to discriminate against certain groups of individuals. For example, if an AI system is programmed to collect data from men and women’s interactions on social media, then it may learn about the history of certain individuals and their interactions with others.
9. AI Can Introduce Risks To Privacy
Artificial intelligence is one of the most powerful technologies available to marketers, but it also can have a negative impact on how customers and employees perceive privacy.
For instance, companies that use high-end artificial intelligence systems can train them to look for factors that indicate whether a given customer is likely to default on loans or credit card payments. If an AI system has access to an individual’s credit score or other financial information, then this could be exposed in such a scenario.
Artificial intelligence in marketing is not just a fad that will fade away. The advancements that have been made in this area will continue to change how businesses engage with their target audiences and how consumers interact with products and brands.
It’s important for marketers to understand the full potential of artificial intelligence, but it’s also important to understand how it could backfire if it isn’t used wisely. Artificial intelligence has the ability to improve digital customer experiences, yet marketers should be aware of its limitations.
Every marketer should be familiar with the most common risks associated with artificial intelligence, because knowing these risks can help prevent costly mistakes or outcomes that are not consistent with the brand’s image or reputation.