Blog #3

Blog Post 3: Artificial Intelligence in Marketing

Is AI Taking Over Marketing?

The field of artificial intelligence (AI) is radically transforming the marketing process: product recommendations are tailored to each customer, chatbots that respond instantly to the questions of a client, and much more (Krishnan et al., 2022). A thing that was regarded as a futuristic idea now becomes a part of the essence of interaction between a business and a consumer.

Data-driven marketing and customer relationship management (CRM) is also directly connected with AI in marketing (Rahman, 2024). This enables companies to analyse large amounts of data and provide highly personalised experiences. This reflects the movement towards customer-centric marketing, where value is added by understanding and responding to the individual preferences of customers instead of treating all customers the same.

One of the best examples in real life is Amazon, whereby it uses AI algorithms to suggest products based on browsing and purchase history (Gunasekar et al., 2023). These personalisedsuggestions lead to great sales as they inspire other purchases. In the same way, Netflix employs AI to suggest the content that is personally adapted to every customer to keep people interested and attract higher customer retention.

In theory, AI makes marketing more efficient and effective. It enables businesses to convey the correct message to the correct individual at the correct time to enhance customer experience and business performance (Chaisatitkul et al., 2024). It also eliminates the need for manual decision-making, and marketers can instead rely on data instead of guesswork.

Nevertheless, this growing use of AI creates a number of critical issues. One major problem with this is the disappearance of human interaction. While chatbots can be used to quickly provide a response, they often lack empathy and understanding, which can have a negative impact on customer satisfaction - especially when dealing with complex issues (Ranieri et al., 2024).

Another important issue is the privacy of data. AI involves extensive personal data, which is mostly extracted with customer consent. Companies such as Meta (Facebook) have gotten a lot of criticism over how they handle data which simply draws attention to the ethical issues with AI-driven marketing.

There is also the risk of being too dependent on technology. If businesses rely largely on AI, they can lose creativity and human insight that are important for effective and innovative marketing strategies.

References

Chaisatitkul, A., Luangngamkhum, K., Noulpum, K. and Kerdvibulvech, C., 2024. The power of AI in marketing: enhancing efficiency and improving customer perception through AI-generated storyboards. International Journal of Information Technology, 16(1), pp.137-144.

Gunasekar, S., Ray, S., Dixit, S.K. and PA, M.R., 2023. AI-enables product purchase on Amazon: what are the consumers saying?. foresight, 25(2), pp.185-193.

Krishnan, C., Gupta, A., Gupta, A. and Singh, G., 2022. Impact of artificial intelligence-based chatbots on customer engagement and business growth. In Deep learning for social media data analytics (pp. 195-210). Cham: Springer International Publishing.

Ranieri, A., Di Bernardo, I. and Mele, C., 2024. Serving customers through chatbots: positive and negative effects on customer experience. Journal of Service Theory and Practice, 34(2), pp.191-215.

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