How Generative AI is Changing the Face of Marketing
December 29, 2023
Advances in AI have revolutionized the marketing world–and this is only the beginning
All the buzz around generative AI lately has cemented the tech as the foreshock of a revolution in marketing. But AI–machine learning and automation included–has been subtly revolutionizing the marketing industry for years now.
Predictive analytics, marketing automation, and algorithms have been improving targeting, segmentation, and more since at least the early 2010s–but only last year, with the advent of ChatGPT, has AI really entered the public eye–and kicked the marketing industry into high gear to discover new applications and uses for the technology.
A recent report from PwC predicts that the use of AI in business will add $15.7 trillion to the global economy by 2030. And a lot of that will be driven by generative AI–the type of artificial intelligence that resembles human creativity.
AI in the industry
While machine learning has been around for a while in marketing, generative AI tools are different, both in their application and in what they offer for the marketing industry.
Machine learning has assisted in targeted advertising, segmentation, and data analysis. Generative AI, on the other hand, stands to help with improved personalization and lead to faster content creation (which leads to increased productivity).
One of the current leading applications of AI tech in marketing is programmatic advertising. In fact, 90% of CTV ads are served programmatically. That’s the result of automation and machine learning–and it’s now a significant part of the digital advertising landscape.
While generative AI hasn’t been around nearly as long, it, too, has the potential to revolutionize the advertising industry in the same way programmatic advertising has–it’ll just take some exploring to get there.
What’s special about generative AI?
The generative AI sector is projected to grow about 36% each year until 2030–ballooning in investment as well as return.
Generative AI–unlike machine learning or other types of automation–is unique because it can generate text, graphics, audio, and even videos that resemble human creativity, yet at a much faster rate than a human.
With over half of marketers already using genAI in their work, marketers have already discovered some basic benefits to using genAI platforms like ChatGPT–including creating content and writing copy, which over 76% of marketers surveyed by Salesforce use the technology for. Marketers estimate that using genAI could save them about five hours of work every week–that adds up to about one month a year, which represents an incredible increase in productivity just from using the tool as it exists now.
However, genAI has the potential to transform the marketing industry entirely. Over half of marketing professionals are calling generative AI a “game-changer” when it comes to their work. Not only can genAI potentially personalize marketing at scale, but it can refine and optimize SEO strategy and build marketing campaigns from the ground up. These are just a few use cases that will likely become among the many future innovations in genAI.
Through the implementation of chatbots, AI-powered search engines, and more, generative AI is changing marketing beyond just serving as a tool. AI is revolutionizing marketing creativity–and how we think about campaigns–as we know it. However, it may be a long road to get to that point.
Security and privacy concerns
GenAI in the marketing field has an uphill battle ahead of it. As companies worry about data leakage and the exposure of sensitive data, they’re beginning to employ bans on the technology. According to a BlackBerry survey from August 2023, 75% of companies are considering or have already implemented a ban on ChatGPT and other similar apps in the workplace. 61% of those companies intend for those bans to be permanent.
JP Morgan Chase and the US Space Force are two such organizations. While the US Space Force’s ban is only temporary, it marks a hesitation among institutions to engage with the new technology, especially at such an early stage, in which users are encountering fabricated data from platforms like ChatGPT, raising anxieties about the tech.
However, the hesitations are still overshadowed by the immense potential genAI holds. The Space Force’s ban is temporary because, as deputy chief of space operations for technology and logistics Lisa Costa admits, genAI “will undoubtedly revolutionize our workforce and enhance Guardian’s ability to operate at speed.”
What’s on the horizon
In 2021, the market for AI in marketing was estimated at around 15.84 billion dollars. The value is projected to increase to over 107.5 billion by 2028.
GenAI itself will contribute over a trillion dollars to the US economy by 2032. It’s a ballooning market.
Currently, it’s disrupting the marketing game–whether companies ban it, employees use it, or businesses try to implement it, it has upended much of how creativity and productivity in the workplace are viewed.
Not only can genAI act like an assistant that streamlines the processes of copy creation, multivariate testing, and brainstorming, as well as perform busy work and free up humans to focus on more strategic and complex aspects of a campaign–but it can completely transform how marketing campaigns function.
With a novel technology that is still inspiring marketers and opening doors with its potential, there is loads of experimentation and trial-and-error yet to encounter with the technology. GenAI marks just the beginning of a new era in marketing creativity.