Over the past year especially, AI has moved from being a futuristic concept to a core tool used in modern marketing strategies – allowing companies to connect with their target audiences on a more intimate level and vastly expanding the array of tools at the disposal of marketers.
AI is undoubtedly emerging as the star of the show on the global marketing stage.
Today, more businesses are prioritising the use of AI technology to enhance their marketing efforts than ever before. This is according to research by Exploding Topics, that shows that 77% of companies are either using or exploring the use of AI in their businesses.
‘AI First’ is a rising trend that is set to shape the future of marketing. In fact, this technological revolution isn’t just changing how we market – it’s fundamentally transforming what marketing means.
The term ‘AI First’ refers to an approach where businesses prioritise the use of AI technology to enhance their marketing efforts, and this includes leveraging AI for customer insights, personalised content, and data-driven decision-making, among others.
With AI as a cornerstone of marketing strategies, companies are unlocking new opportunities to engage customers, track performance, and drive sales like never before.
A powerful new marketing toolbox
From AI-powered analytics to chatbots and immersive experiences, marketers now have an ever-evolving array of powerful tools at their disposal, to help them optimise their strategies and enhance customer experiences.
AI is no longer just a supplementary technology but a foundational element driving innovation in marketing.
AI-driven personalisation
Personalisation has long been a buzzword in marketing, and now AI has taken it to new heights. At the core of this transformation is AI-driven technology that allows marketers to tailor content and product and service offers to individual customer preferences.
By analysing vast amounts of consumer data in real time, AI can help create hyper-personalised experiences, from dynamic website content to individually tailored email campaigns.
This level of consumer care is proven to drive increased engagement and higher conversion rates as substantiated by a recent McKinsey survey that revealed that businesses with strong personalisation strategies can reduce customer acquisition costs by as much as 50%, boost revenue by 5% to 15%, and increase marketing ROI by 10% to 30%.
AI-powered chatbots: Leading the trend
The integration of AI-powered chatbots into marketing strategies, while not new, is another powerful manifestation of the ‘AI First’ approach in marketing.
It is notable how these tools have rapidly become a vital element of customer service, in particular. Chatbots can handle a wide range of assignments, from responding to client queries to recommending products based on user preferences.
In terms of marketing, chatbots enable brands to create individualised experiences that can drive sales. For example, they can suggest products based on past purchases, alert users to new offers, and even send reminders for abandoned carts.
By automating communication, chatbots not only improve customer satisfaction but also free up valuable resources for marketers, creating more capacity to focus on strategic initiatives.
Their 24/7 availability and quick response times offer a level of convenience that is invaluable in today’s fast-paced digital world, and the fact that their value can be calculated in hard currency makes them a viable proposition for CMOs when presenting to the C-Suite.
A recent report by Juniper Research, predicted retail spend over chatbots reached $12bn globally in 2023, and will grow to $72 billion by 2028.
Improved analytics: Tracking with precision
One of the most exciting aspects of an ‘AI First’ marketing strategy is the incorporation of AI-driven analytics tools that enable marketers to leverage AI for deeper data insights.
While traditional marketing relied heavily on demographic and behavioral data, often gathered from a few touchpoints, AI can integrate data across numerous channels – social media, websites, email campaigns, and more – to offer a much more comprehensive view of consumer behaviour.
By using machine learning algorithms to identify patterns in this data, companies can gain insights into customer preferences, purchase behaviours, and pain points. This, in turn, allows for more accurate predictions of future sales that help businesses optimise their marketing strategies.
AI and the rise of influencer marketing
Influencer marketing is another area where the ‘AI First’ approach is driving major change through AI technology, primarily through tools that can analyse engagement data to identify influencers who are best aligned with a brand’s audience.
One of the most important recent advancements has led to the ability to harness data and insights of individual influencers. These insights are helping to inform and streamline decision-making – essentially empowering brands to identify the most relevant content creators for their audiences.
A case in point is Upfluence, a leading influencer marketing software service, which recently announced its integration with cutting-edge AI language model ChatGPT.
Taking this step, Upfluence introduces advanced messaging features that could revolutionise influencer recruitment, by making these interactions more efficient and personalised, thereby improving overall success rates.
I am inclined to agree with industry leaders that advancements in AI and data analytics will continue to provide deeper insights into influencer impact, taking the influencer marketing evolution to an entirely new paradigm.
Global Industry Leaders Weigh In
Industry leaders agree that the ‘AI First’ trend is not just a passing fad but a fundamental shift in how marketing will operate in the future. According to Satya Nadella, CEO of Microsoft, AI will change the way we do marketing forever.
He emphasises that AI will empower companies to move beyond basic targeting to a deeper understanding of customers’ needs and behaviors.
Similarly, Sundar Pichai, CEO of Google, predicts that the future of marketing will be ‘hyper-personalised’ thanks to AI. His comment that “AI is probably the most important thing humanity has ever worked on,” resonates with millions across the globe.
The MMA is one of the global industry voices leading the charge when it comes to the ‘AI First’ trend and is actively working to provide marketers with the knowledge and tools needed to stay ahead of the AI developments curve.
As a leading industry body we keep our finger on the pulse of marketing trends that are rapidly reshaping the marketing landscape – and the ‘AI First’ trend is by far the most significant.
A word of caution though: Marketers would do well to take into consideration the decline in consumer trust in AI, within their ‘AI First’ approach.
The human element still needs to come through strongly and this has a profound impact on consumer loyalty. Significantly, a study by PwC found that one of the primary consumer trust imperatives is based on the expectation that brands will integrate AI tools into business operations while maintaining a strong human element.
Vincent Maher, head of the recently established MMA AI Leadership Consortium’s (ALC) South Africa chapter wholeheartedly agrees and raises one of the most pertinent issues arising from the ‘AI First’ Trend – the ‘human first’ dynamic.
“It’s just as clear as ever that the more intelligent AI becomes, the more important human creativity and empathy become,” he asserts, making the (reassuring) point that the future of marketing isn’t AI replacing humans, it’s AI amplifying the human touch.
And that’s a whole different ball game.
Conclusion
As this technology continues to evolve, and marketers increasingly take the ‘AI First’ approach, it promises to unlock even more powerful tools that will define the next era of marketing.
We are ready.
Sarah Utermark is country director of MMA South Africa. She was previously director of brand and partnerships at Opera. She graduated from the University of Gloucestershire with a Bachelor of Science in sports science and marketing management.
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