In this era of data-driven decision-making, artificial intelligence (AI) has emerged as the cornerstone of modern marketing strategies. With the help of AI, marketers can process a huge amount of data, carry out individualized sales, and fulfill customer expectations. In modern marketing, AI (artificial intelligence) plays a significant role in enhancing customer experiences, optimizing marketing strategies, and streamlining various processes. However, harmonizing AI with human interaction is crucial for a successful marketing approach. In this chapter, the authors have reviewed the whole concept of using artificial intelligence in marketing. It provides comprehensive details of the benefits of implementing AI in marketing, how AI is reshaping marketing, and the need for AI in marketing which is illustrated with real-world examples from different businesses. The chapter highlights the significance of AI integration with human interaction in modern marketing, the challenges, and potential implications.
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In recent times, the landscape of marketing has undergone a profound revolution propelled by technological advancements and the widespread integration of digital platforms. Central to this transformation is the enduring query: Can machines engage in cognitive processes akin to humans? This fundamental question, first posed by Alan Turing in 1950, triggered exploration via the 'Imitation Game' or 'Turing Test', aimed at distinguishing between machine intelligence and human intellect. Since the inception of computers, the discussion surrounding the potential of artificial intelligence (AI) to match human cognitive capacities has remained pivotal in technological discourse. The crux of this evolution lies in striking a balance between AI-driven automation, which enhances efficiency, and human involvement, which contributes empathy, creativity, and intricate decision-making. The primary objective is to discern the strengths of each domain and seamlessly integrate them to craft more holistic and impactful marketing strategies.
In the foreseeable future, Artificial Intelligence (AI) is set to revolutionize decision-making for marketing managers by providing invaluable data and insights that would otherwise be unattainable. This versatility is exemplified by Amazon's intricate recommender systems, extensively utilized by consumers during product purchases, coupled with the convenience of Amazon's same-day delivery service. Additionally, Google's adeptness in aligning search results with relevant advertisements underscores AI's influence. As social media platforms continue to amass vast volumes of unstructured data, the significance of AI and Machine Learning (ML) in empowering marketers with real-time insights has amplified. ML, a subset of AI, empowers marketers to deliver personalized experiences to customers at opportune moments by leveraging large-scale data models to recognize patterns and forecast outcomes (Mitić, 2019). The advent of AI and ML has inaugurated a new epoch in marketing, significantly streamlining firms' strategic processes and markedly enhancing strategic decision-making methodologies (Miklosik et al., 2019).
Amidst the era of data-centric decision-making, Artificial Intelligence (AI) has emerged as the linchpin of contemporary marketing strategies, fundamentally reshaping how businesses engage with their audiences, tailor their messaging, and refine their campaigns (Kaplan, 2021). Recognizing and comprehending customer needs and expectations regarding products and services have become imperative for companies in recent times. AI empowers marketers to effectively navigate extensive data volumes, enabling personalized sales approaches and meeting customer expectations with precision. The rapid insights gained about customers and their requisites enable marketers to expedite campaign performance and swiftly augment Return on Investment (ROI).
Within modern marketing landscapes, AI assumes a pivotal role in augmenting customer experiences, optimizing marketing methodologies, and refining various operational processes. According to a recent report from Price Waterhouse Cooper (PwC), projections indicate that artificial intelligence (AI) is poised to contribute over USD 15 trillion to the worldwide economy by the year 2030, potentially bolstering local economies by up to 26% (IBM, 2023). Out of this total, approximately $6.6 trillion is anticipated to stem from heightened productivity, while an additional $9.1 trillion is expected to be attributed to the consequential impacts on consumption (Pwc, 2023).
An analysis by McKinsey in 2018, encompassing over 400 advanced use cases, highlighted marketing as the domain where AI is anticipated to deliver the greatest value. Similarly, a 2020 Deloitte global survey of early AI adopters identified three of the top five AI objectives as marketing-oriented: enhancing existing products and services, creating new offerings, and enriching customer relationships. Nonetheless, achieving a harmonious synergy between AI capabilities and human interaction is imperative for the success of marketing endeavors.