Opinions expressed by Digital Journal contributors are their own.
The marketing world was forever changed on November 30, 2022, when OpenAI released its conversational chatbot. Within five days, the app had amassed over a million users. By January 2023, it received about 13 million unique visitors daily, making it the fastest-growing consumer application. This development triggered the generative artificial intelligence boom, a seismic shift significantly impacting industries.
Since then, marketers have watched the launch of advanced generative AI applications such as ChatGPT 4, GitHub Copilot, and Stable Diffusion with awe and trepidation. While the possibilities seem endless, so too do the potential pitfalls. Questions abound: Will AI replace human creativity? Will a marketer’s carefully honed skills become obsolete? Are we looking at the most powerful tool anyone has ever wielded?
The market outlook on generative AI
With machines generating human-like text, images, and even video at the click of a button, it’s clear we’re in a new era. Still, as a McKinsey & Co. report concludes, this development presents an unprecedented opportunity.
“GenAI could contribute up to $4.4 trillion in annual global productivity,” the report reads in part. “Marketing and sales is one of four functional groups that combined could reap an estimated 75 percent of that value.” The report states, “The productivity of marketing alone due to GenAI could increase between 5 and 15 percent of total marketing spend, worth about $463 billion annually.”
By all indications, the future belongs to companies that figure out ways to generate value with GenAI. The analysts concluded, “Change is coming, and companies that sit on the sidelines risk being left behind.”
Pros of generative AI in marketing
Generative AI brings three remarkable benefits in the marketing space: efficiency, scalability, and innovation.
First, AI-powered tools can generate content, design elements, and even entire marketing campaigns in a fraction of the time it would take human marketers. This boost in efficiency allows teams to focus on strategy and creative direction while AI handles repetitive tasks and content creation at scale.
Secondly, AI amplifies personalization in marketing. Unlike human marketers, AI can analyze vast amounts of data, making creating highly tailored content, product recommendations, and customer experiences easier. This level of personalization was previously unattainable, allowing marketers to connect with their audience on a deeper level.
Third, and perhaps most importantly, generative AI doesn’t just mimic human creativity. GenAI models can uncover patterns and insights from data humans might miss, leading to innovative marketing approaches and more effective campaigns.
Cons of generative AI in marketing
Not surprisingly, the rise of generative AI models hasn’t been without criticism. For instance, many fear AI could replace human marketers in specific roles as it becomes more sophisticated. While AI is unlikely to supplant human creativity and strategic thinking completely, it may lead to a shift in required skills and potentially fewer entry-level positions in the field.
There’s also a growing concern about overreliance on automation. With GenAI tools doing so much, losing touch with the human element is dangerous. For example, AI-powered content generators could lead to homogenized content and strategies, potentially diminishing the unique voice and creativity that sets brands apart.
Leveraging GenAI for better customer experiences
As with any tech development in history, GenAI can be a blessing or a curse. Samuel Edwards from Marketer, a full-service digital marketing agency, says it all depends on how you use it. “AI can be a boon to marketing agencies with the right implementation strategy,” Edwards opines. “In fact, for many agencies, ignoring the trends in AI marketing can come at a very high cost.”
Wharton professors Nicolaj Siggelkow and Christian Terwiesch concur. In a Harvard Business Review article, they note that “technology in and of itself does not create value. For value creation to happen, we have to think about [GenAI] as a solution to an unmet need, which requires a precise understanding about the pain points in customer experiences.”
