Artificial Intelligence (AI) in Marketing

Vibhusha Verma1
Department of Commerce and Management, Banasthali Vidyapith, Jaipur, India.

E-mail: vibhusha01@gmail.com

Abstract-

AI is everywhere. Many years ago, in our imaginations people go far off and say that they had
designed such models like robots which even before computers could do anything more than our
minds. However science fiction has finally begun to become a reality as technology improved
and computing power grew more affordable. However, it differs significantly from what we had
anticipated. AI is basically the software innovations that enable a robot or computer to behave
and think like a person. Companies that collect our data now have access to the entirety on our
lives, and marketers are getting more and more skilled at utilizing this information to persuade us
to purchase their goods and services. But the revolution in digital marketing is about to shift into
a new phase which has been termed as the era of artificial intelligence

At starting, artificial intelligence (AI) was the stuff of science fiction only but slowly with the
more advancement, now it is controlling lifestyle of people like how consumers eat, sleep, work,
play, and even it has access on their likings and disliking too.

For marketing we'll use a much more practical definition provided by John McCarthy, who is
considered as the father of AI. His definition states that a system has AI, if it performs actions
that is performed by humans, would be considered intelligent. Now this is a more practical
definition that we can use for applications in marketing. How people live, work, and
communicate has already been transformed because of the digital revolution. AI is employed by
many modern marketers to support marketing teams or to carry out more tactical operations that
really don't require as much human subtlety. People feel that artificial intelligence can solve the
majority of problems, and there are many hurdles in every field. Artificial intelligence has been
termed as the "next industrial revolution." AI can also find solutions to issues that may arise in
the future. The potential for the development of new industries, technologies, and ecosystems
enormously are interdependent on the platform of AI.
This paper outlines the study to investigate various facets of artificial intelligence and
demonstrate why marketers should use it as a marketing tactic to promote their products and
services. Recognize the customer journey in order to serve your customers' demands.
Investigating the various ways that AI can affect consumer behavior and evaluating potential
risks and difficulties that may arise while implementing AI.

INTRODUCTION:

Artificial intelligence (AI) helps companies to offer all the necessities to consumers, such as
health monitoring with wearable devices, advice with recommender systems, peace of mind with
smart household products, and convenience with voice-activated virtual assistants. The main aim
of the paper is to explore how profoundly artificial intelligence is applied in promoting and
showcasing various fields in marketing.

OBJECTIVES OF THE STUDY:

This research's primary objective is to examine various aspects of artificial intelligence and
showcase the need for marketers to adopt it as a marketing strategy for the promotion of their
goods and services.

 Understand what is considered the customer journey and to cater to your customer needs
 Examining different ways that AI can influence customer behaviors
 Analyze the risks and challenges might associated to encounter when trying to implement AI
 Impact of AI in marketing.

RESEARCH METHODOLOGY-

The study explores the numerous facets of the artificial intelligence marketing concept. In this
descriptive study, instances are provided and cited with references to certain secondary sources
and some proposal experiences of the author's.

The study makes a few recommendations for actions that marketers may follow to enhance their
marketing strategies and plan accordingly.

LITERATURE REVIEW-
Sanjiv Mehta, CEO & MD of Hindustan Unilever ltd. (Corporate citizen, February 16-28,
2018, Page 20 to 25) - Although the fundamentals of marketing haven't changed, how we
communicate has altered marketing. It changes every day. The significant transformation has
occurred there. There is definitely an art to telling stories, but the important thing is how we tell
them and in what medium. Artificial intelligence and machine learning will bring about major
changes in both business and marketing.

Russel and Norvig (2016)- Artificial intelligence describes machines (computers) that simulate
cognitive and affective functions of human mind. The development of Artificial intelligence is
phenomenal and experts have worked tirelessly to advance AI concepts over the few decades.
The work led to some major innovations like big data analytics and machine
learning applications in myriad sectors and context.

Although using AI in marketing can be beneficial, experts claim there are still uncertainties
about the quality and utility of the data. According to the study, "more than half of all AI
spending in 2017 was accounted for by sales and marketing"(Brynjolfsson & Syverson, 2018).
Despite the rapid growth of marketing AI, just 25% of the organizations that invest in it feel their
business processes have improved, and only 45% of those 45% see a return on their investment
(Mimaroglu, 2017). Data quality is a crucial factor in determining the quality of AI used, and is
generally seen as AI's cornerstone (Enholm & Krogstie, 2021).

WHAT IS ARTIFICIAL INTELLIGENCE (AI) MARKETING?

By integrating consumer data with AI concepts like machine learning, artificial intelligence
marketing (AI Marketing) is a technique for predicting your customer's next move and
optimizing the customer journey. AI is implemented in marketing to offer constructive advice for
maintaining relationships. AI may create a profile of each client by combining various data
sources and systems, enabling decision-makers to understand what influences their customers'
decisions the most and direct them towards their preferred plan of action.

Customer`s journey towards catering their needs-

I believe that the most effective way to consider AI applications is to consider customers'
requirements, and what better way to consider customer needs than to explore the journey?
Consider the normal customer journey. It begins with the recognition of a need. You begin to
consider whether you might like to get a new sweater, for example. What businesses are offering
to its customers can assist in purchasing a decent sweater? Then you move onto the different
alternatives very carefully offered by the companies thoroughly analyzing each potential choice.
Perhaps make decision after that. Each person's customer journey might be quite different. This
is about customer journey and segmentation. The idea that every customers is not the same. Now
again, you can think of this as a limitation sometimes, you can think of it as a challenge. But I
want you to think of this as an opportunity again. Because this is where AI and all the
possibilities that it has in terms of being able to customize, being able to understand which
customer is going around their journey and where they are in that journey, that's where the
opportunity lies.

Examining different ways that AI can influence customer behaviors-

In order to know your customers needs and wants you need to know about them deeply. To
provide the best customer experience, you need to know as much information about your
customers. This is possible only because of AI.

Marketers may rely upon artificial intelligence, which is beneficial for both brands and
its customers. AI is an asset considering the benefits it offers and will continue to offer provided
we use it wisely. The key advantage is how well it has helped marketers understand and analyze
customer purchasing behavior.

 Artificial Intelligence and Machine Learning

 Strategic Decision Making
 Boosting sales, which increase overall profit.
 Improved and Relevant Search Results.
 Extracting relevant information from Customers feedback.

Analyze the risks and challenges might associated to encounter when trying to implement
AI-
I think it's important to understand what the risks that are appearing as well are. One example of
the risk understands where the data is from. As new technology comes in, as new competitors
come in, all of that journey changes.

 Security of data and storage

 Technological complexity
 Limited Knowledge
 Forecasting of demand
 Fraudulent activities
 Low intensity of AI research
 Dynamic pricing and demand forecasting

Thinking carefully about how you're using your data, you're using your models, and how often is
that data getting updated in terms of how the journey is changing is critical. Of course there's no
data for free.

Impact of AI in marketing.

Recent research suggests 80% of marketing leaders believe AI will impact marketing in the next
three years, writes DEBBIE PEARSON. AI Marketing creating a great impact everywhere which
can be subdivided into-?

 On consumers
 On businesses
 On brands
 On promotion

AI and its Marketing Strategies-

A strategy is formed by a pattern of decisions (Mintzberg, 1978), nowadays, marketing and sales
are conducted digitally, and most people shop online. The majority of customer assistance is
handled by chat bots. We use all of them, from Siri to augmented reality programmers. These
advanced systems have existed since the 1970s. Well, intelligent robots and artificial intelligence
that have replaced them in practically every industry in recent years,

Artificial intelligence (AI) technologies are being used in marketing to make automated
judgments based on data collection, data analysis, and further observations of audience or
economic trends that may have an impact on marketing activities. Businesses from a
various sectors and industries have also implemented artificial intelligence-based technology
successfully in their own businesses. That could take the shape of voice recognition software,
automatic factory equipment monitoring and maintenance, or live chat. Key performance
indicators (KPIs) are used to define a company's strategy.

The best outcomes to test, how to measure them, and how to priorities, they can all be decided
with the use of artificial intelligence. Strategies explain how and why companies intend to
prosper in the market it has targeted. Strategic KPIs for public firms often respect and take into
account investor concerns; for private equity, they might be adjusted to maximize a sale price or
ease an IPO. These goals are translated into computation through machine learning-enhanced
data-driven systems.

Without an enterprise data strategy, there can be no corporate plan for nor with AI. It is a
necessary component for dynamic optimization and machine learning. The examples of Uber,
McDonald's, and Go Daddy show that optimizing strategic KPIs like ETAs, happy families, and
CLV depends on the quantity, velocity, variety, and quality of the data.

CONCLUSION-
AI provide marketers the ability to personalize the relationship moments, acquisition,
retention, growth, and advocacy to individual consumers preferences. In this way, AI has the
potential to also increase value for consumers. The Fourth Industrial Revolution, in which
intelligence will rule supreme, will favor businesses that deliver excellent customer experiences.
In order to better understand its end-user experience and visibility across all functional areas, the
organization has been conceptualized to have integrated to understand better its end customer
experience and visibility across all functional areas. This paper outlines a framework to understand
how AI will impact the future of marketing, specifically to outline how AI may influence marketing
strategies and customer behaviors. Although AI has already had some impact on marketing, it will have
much more in the future, so there is still much to learn. Academics, businesses, and policy experts
should take this research agenda into mind. This research agenda is intended to inspire and direct future
AI research.

REFERENCES -

https://www.analyticsinsight.net/knowing-john-mccarthy-the-father-of-artificial-intelligence/
https://zoo.cs.yale.edu/classes/cs470/materials/aima2010.pdf
https://www.jamescannella.com/resources/artificial-intelligence-in-marketing-thesis
https://en.m.wikipedia.org/wiki/Machine_learning

https://www.singlegrain.com/digital-marketing-strategy/how-artificial-intelligence-is-
revolutionizing-the-digital-marketing-sphere/

https://www.inc.com/james-paine/how-ai-canbe-used-to-increase-sales.html

https://www.quora.com/in/how-is-artificial-intelligence-programmed

https://futurism.com/1-evergreen-making-sense-of-terms-deep-learning-machine-learning-and-ai/

https://www.emarsys.com/en/resources/blog/artificial-intelligence-marketing-solutions/

https://www.thinkwithgoogle.com/marketing-resources/ai-personalized-marketing/

https://www.forbes.com/sites/louiscolumbus/2018/02/25/10-ways-machine-learning-is-
revolutionizing-marketing/