The Pros and Cons of Artificial Intelligence (AI) in Marketing

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Artificial intelligence (AI) is transforming the field of marketing in exciting new ways. As marketing becomes more data-driven, the ability of AI systems to quickly analyse huge datasets and derive actionable insights is incredibly valuable.

According to one survey, about 30% of companies are already using AI for marketing purposes, and another 40% plan to do so in the next two years.

However, integrating AI into marketing strategies does come with certain challenges and potential pitfalls.

Marketers must weigh the benefits of automation and enhanced data analytics against concerns like privacy, ethics, and overhead costs.

When implemented thoughtfully, AI can take marketing efforts to the next level. But the technology still has limitations, and striking the right balance is key.

In this article, we’ll explore some of the key pros and cons of using artificial intelligence in marketing, looking at real-world examples and data. With the rapid pace of advancement in AI, marketing applications are constantly evolving.

But understanding the core benefits and risks will help marketers determine the smartest ways to leverage this technology today and in the future.

The Pros of Using AI in Marketing

Here are some of the main advantages of integrating artificial intelligence into marketing strategies:

More Personalised Marketing

One of the greatest strengths of AI is its ability to gather and analyse huge volumes of data in order to understand customers on an individual level.

With machine learning algorithms, marketers can create highly-tailored messaging and provide recommendations unique to each customer.

Chatbots powered by AI can have personalised conversations with prospects and customers at scale. This level of personalisation helps build stronger relationships and boost engagement.

According to research from Segment, 76% of customers expect companies to understand their needs and expectations.

Leveraging AI is the best way for marketers to deliver the hyper-targeted experiences customers have come to expect.

Faster Content Creation

AI tools can automate content creation in several ways. Advanced AI platforms can generate entire articles, social media posts, product descriptions, and more in just seconds.

While human oversight is still required, this dramatically expedites the content creation process, allowing marketers to produce much more content in less time.

AI copywriting tools like Copy.ai and Jarvis allow marketers to generate blog posts and other content by simply entering a prompt or a few keywords.

The AI then outputs human-like content that can be edited and repurposed as needed. This streamlines the content creation process.

Improved Analytics and Insights

One of the biggest advantages of AI in marketing is its ability to quickly process huge volumes of data to identify patterns and trends.

Rather than relying solely on human analysis, machine learning algorithms can mine data to derive insights much more efficiently.

For example, the retail giant Target used AI and machine learning to analyse their customer purchase data. This allowed them to identify predictive patterns, like when a customer was pregnant, based on their buying habits.

AI was the only thing that made this kind of detailed behavioural analysis at scale possible.

AI can also help marketers A/B test and experiment faster. Algorithms can iterate through multiple content variations and landing page versions to optimise conversion rates.

AI testing platforms like Sentient Ascend have sped up the improvement of marketing assets.

According to a case study, the AI system optimised a company’s conversion rate by over 42% compared to their human marketers.

Automated Tasks and Processes

Repetitive marketing tasks like sending emails, managing social media postings, data entry, and media buying can be fully automated with artificial intelligence.

This frees up marketers to focus on more strategic initiatives, like developing messaging and planning campaigns.

An AI system can scan social conversations and interactions to determine optimal posting times. It can automatically populate campaign analytics dashboards.

It can also track leads and prompt sales reps to follow up at just the right time in the buyer’s journey. Automating rote tasks improves productivity and efficiency.

Cost Savings

According to a survey from Drift, 57% of marketing teams name cost reduction as a key goal. With its capabilities for automating tasks, generating content, and optimising campaigns, AI can help cut costs substantially.

It also eliminates waste by directing efforts only to high-value activities. AI tools provide so much data and insight that marketers can determine the optimal marketing mix and allocate budget accordingly.

They can eliminate guesswork and focus budgets only on the platforms, campaigns, and activities driving the highest ROI. This is critical for cost-efficient scaling.

Better customer segmentation and targeting

Machine learning models excel at finding hidden groups and micro-segments within broader customer datasets.

Brands can then build highly targeted campaigns customised to these different audience groups.

For example, an AI-powered email marketing platform called Phrasee uses natural language processing to analyse past email subject lines and determine which style of copy resonates with different customer demographics.

It can then generate optimised subject lines to send to each demographic segment, boosting open and click through rates.

The cons of using AI in marketing

While the benefits are immense, there are also some potential downsides to consider when incorporating AI into marketing:

High upfront costs

For many companies, one major downside of AI marketing is the high cost of initial implementation. The technology, infrastructure, and talent required to build and maintain complex AI systems represent a hefty investment.

Large tech giants like Google or Amazon can absorb these costs, but smaller firms can find them prohibitive.

It’s important to weigh the ROI – many forms of AI are still unproven when it comes to measurable marketing gains. And even once the systems are built, they require ongoing management and tweaking by data scientists.

While AI marketing costs are going down over time, they remain expensive compared to human-driven marketing.

Potential issues with data quality and bias

“Garbage in, garbage out” also applies to AI – without high quality, unbiased data to learn from, the systems will simply mirror and amplify any defects.

For example, if an image recognition algorithm only learns from Caucasian faces, it will inevitably underperform with faces of colour.

Ensuring responsible and ethical AI requires extensive data curation, testing for bias, and governance.

But not all brands put in this work. According to an MIT study, machine learning algorithms demonstrate human-level cultural and gender bias.

Marketers must be vigilant to ensure that their AI systems reflect diversity and inclusion.

Lack of creativity and emotional connection

Some fear that AI-generated content lacks emotion, nuance, humour and the “it” factor needed to connect with human audiences.

While AI tools work well for general research and ideation, the most effective marketing still combines data with human creativity.

After launching several AI-generated Facebook campaigns, the clothing retailer H&M saw lower engagement rates compared to human-made ads.

The public still prefers content with that intangible human touch. For now, AI is optimised for amplifying data-driven messages, not crafting truly inspirational stories.

Job losses in certain areas of marketing

As AI handles a growing share of analytical, creative and administrative tasks, some jobs in the marketing field could decline.

Positions like marketing research analysts are at high risk of becoming automated in the future.

According to Forrester Research, cognitive technologies like AI could replace 16% of US jobs by 2025.

Marketers will need to proactively re-skill and find new ways to complement machine capabilities. Understanding AI is becoming essential, even for marketing managers.

Privacy and ethical concerns

The marketing potential of AI-driven data mining raises red flags for consumer privacy advocates. Brands now have the unprecedented ability to gather and exploit user data for personalised profiling.

Without proper disclosure and consent processes, this poses ethical risks. Recent laws like the General Data Privacy Regulation in the EU provide stricter control for consumers over how brands use AI to handle personal data.

As consumers become more aware of how AI tracks them across channels, transparency will be critical.

Over-Reliance on Technology

While remarkable, even the most advanced AI cannot yet fully replicate human creativity, judgement, and emotional intelligence.

AI tools should enhance marketing efforts but not entirely replace the human element.

Brand building requires an intuitive sense of positioning, messaging, and audience motivations.

Creative conceptualising and storytelling still necessitate human ingenuity.

Marketing leaders should be wary of over-indexing on technology at the expense of honing these soft skills.

The future of AI in marketing

While AI adoption is still in the early stages for many brands, it will likely become an indispensable element of marketing.

According to Salesforce research, 67% of marketers believe AI will be very or extremely important for the future of marketing.

Areas expected to see rapid AI adoption over the next several years include:

Predictive analytics – even more granular insights from customer data

Personalisation engines – tailoring messaging and experiences

Content generation – automated creation of articles, social posts, and more

Chatbots and virtual assistants – conversational interfaces and voice AI

Marketing automation – intelligent workflows and processes

Attribution modelling – understanding omni-channel customer journeys

At the same time, marketers are still experimenting with how best to integrate AI.

Gartner predicts that by 2025, 50% of enterprises will be leveraging AI augmentation and collaboration tools daily in their marketing operations.

But human marketers will remain essential – they provide the imagination, empathy and cultural intuition that AI lacks.

Successful brands will thoughtfully combine the strengths of humans and machines. AI will also unlock possibilities that we can’t yet envision.

Marketers who flexibly build future-proof skill sets while welcoming AI tools will be best positioned for success.

With responsible and strategic implementation, AI can take modern marketing to remarkable new heights.

Conclusion

AI marketing still requires careful navigation of risks versus rewards. But when used judiciously, AI can significantly enhance the scope and effectiveness of marketing efforts.

There are now proven benefits when it comes to data-driven insights, personalisation, testing, targeting, and optimising routine tasks.

Still, striking the ideal balance with human creativity is key, along with remaining responsible with consumer data.

If marketers understand both the profound potential and limitations of existing AI, they can craft smart strategies to leverage this technology successfully.

With responsible implementation and realistic expectations, artificial intelligence can take modern marketing to incredible new heights.

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