Embracing AI in marketing: Present views and future directions

The marketing landscape is undergoing a seismic shift, thanks to rapid advancements in Artificial Intelligence (AI). As marketing professionals, it is crucial to stay ahead of these developments to leverage AI effectively and ethically.

In this article, we explore the current applications of AI in marketing, as well as some challenges and prospects.

The ubiquity of AI in marketing

AI in marketing can be categorized into two primary domains: embedded AI in marketing tools and generative AI. The former has been part of the marketing toolkit for many years, starting with Google’s search algorithms. Today, AI is embedded in almost every marketing platform – from Meta’s digital marketing and Microsoft Office tools to Google Ads and HubSpot. Creative platforms like Canva and Adobe Photoshop integrate AI to streamline design processes.

The transformative force in recent years has been generative AI. Unlike tool embedded AI, generative AI is conversational and can produce original content, making it a versatile tool across all stages of marketing, from strategy formulation to implementation (Chia 8 August 2024).

Generative AI in daily marketing tasks

Generative AI streamlines content marketing by handling tasks from generating interview questions and transcribing conversations to drafting articles and suggesting SEO-optimized titles. The use of Generative AI has increased so rapidly that according to Statista, only 17 % of American marketing professionals did not use generative AI tools in their work in 2023 (Dencheva 2023).

Microsoft conducted comprehensive Work Trend Index research in 2023 and discovered that 70 % of Copilot users claimed they were more productive, and 68 % that it improved the quality of their work. 85 % of users claimed that Copilot helps them get to a good first draft faster (Microsoft 2023). This is particularly valuable in content-heavy digital marketing, where many chores, such as content calendars and social media posts can now be done with generative AI.

Marketers are often puzzled by the great variety of different AI tools and need help with getting started. Thus, a solid mix of embedded AI tools within existing marketing platforms and standalone generative AI tools is recommended. For instance, mastering the following generative AI tools is a good starting point for all marketers.

• ChatGPT: Favored for its creative language capabilities, it’s a versatile tool for drafting content, brainstorming ideas, and refining marketing strategies.
• Microsoft Copilot: Ideal for knowledge-based tasks and data security, offering robust references and factual accuracy.
• Google’s Gemini: Rapidly improving and presents another viable option for marketers.
• MidJourney: A top choice for generating high-quality images.
• HeyGen and Runway: Useful for creating video content.

Case studies from Finland

One standout example of successful AI application is the Finnish marketing agency Sherpa’s campaign for Neste, a major fuel provider. Sherpa utilized generative AI to develop every aspect of their campaign – from strategic planning and app functionalities to marketing materials and even legal documentation. This comprehensive use of AI, though closely supervised by human experts, showcased the technology’s potential to revolutionize marketing workflows.

Another innovative campaign by Sherpa involved a Finnish children’s clothing company Reima that incorporated oyster shells into their jackets. Generative AI was instrumental in creating visually striking marketing materials, featuring children wearing jackets adorned with real oyster shells. What would have been a complex and costly visual project was made feasible and efficient with AI.

Also at Haaga-Helia, we have interesting projects ongoing related to generative AI, including Upbeat, where generative AI is used to provide entrepreneurship training to young immigrants in Finland and Estonia. Generative AI is used in all phases of development from custom-made AI tools, marketing research, curriculum and brand building, customer personas and marketing materials. We have found significant productivity gains from using generative AI, with estimated productivity gains over 50 % in most marketing related materials during the project.

Challenges and ethical considerations

Despite its advantages, AI in marketing is not without challenges. One significant issue is the reliability of AI-generated content. AI tools can ‘hallucinate’, producing incorrect or misleading information. This necessitates human oversight to ensure accuracy and credibility, especially in critical business decisions.

According to Hermann & Puntoni (2024), AI models learn from existing datasets that may contain historical biases. This can lead to the perpetuation of stereotypes or discriminatory practices in marketing content and strategies. Addressing these biases requires careful selection of training data and ongoing monitoring to ensure fairness and inclusivity in AI-generated outputs.

Another concern is the over-reliance on data, which reflects past behaviors and may stifle creativity. Balancing data-driven insights with human intuition and creativity is crucial to maintaining engaging and original marketing content.

Additionally, ethical considerations, such as data privacy and environmental impact, are important. AI operations consume significant resources, and companies must adopt sustainable practices. Moreover, the European Union’s stringent AI regulations underscore the need for transparency and human oversight in AI-driven processes (European Parliament 2024).

Future prospects of AI marketing

Looking ahead, AI’s role in marketing is becoming more autonomous. AI agents will handle more complex tasks, from social media management and customer journey mapping to dynamic content creation and personalized marketing strategies. Marketers will increasingly rely on AI for operational tasks, allowing them to focus on high-level creative and strategic work.

Furthermore, the evolution of AI will shift SEO towards AI optimization, where ensuring that AI tools can accurately interpret and present a company’s offerings will be crucial. Companies must regularly audit how AI represents their brand to maintain visibility and accuracy.

To harness AI effectively, marketers must constantly develop their skills. The first, and most important skill is prompt engineering which means crafting precise and effective prompts to get the desired output from AI tools. Second, understanding and being curious about AI ecosystems is vital as this helps marketers to adapt to new tools and features quickly. Third, all marketers should know how to use AI ethically. Implementing best practices for data privacy and ensuring ethical considerations are at the forefront of ethical usage of AI tools.

In summary, AI is undeniably transforming marketing, offering tools that enhance efficiency, creativity, and data-driven decision-making. However, its successful integration requires a balanced approach that combines technological proficiency with human oversight and ethical considerations.

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