Disadvantages of Using AI (Artificial intelligence) in Marketing

Author: Le Binh An Nguyen

Date: March 13, 2024

In recent years, with the explosion of artificial intelligence, the integration of artificial

intelligence (AI) into marketing strategies has gradually become more popular, no longer

strange to consumers in general and marketers in particular, promising increased efficiency and

personalization (Kumar & Suthar, 2024). Marketing AI covers a wide range of applications, from
customer segmentation and targeting to predictive analytics and chatbots. However, besides

the potential benefits, using AI in marketing also brings some significant disadvantages and

challenges. Here are a few disadvantages we will mention:

Loss of Human Touch: one of the

criticisms of AI in marketing is the

potential loss of human connection and

empathy. Although AI algorithms can

analyze large amounts of data to

understand consumer behavior, they

often lack a deep understanding of

emotions and the context of human communication (Davenport, T., Guha, A., Grewal, D. et al.

2020). This can lead to interactions and communications that are not personalized, ultimately

alienating customers more than attracting them.

Privacy Concerns: The widespread collection and analysis of user data using AI algorithms raises

significant privacy concerns (Xusen Cheng, Linlin Su, Xin Luo, Jose Benitez & Shun Cai 2022).

Because AI-powered marketing techniques rely on data mining and tracking user behavior on

digital platforms, there is a risk of violating individual privacy. Furthermore, misuse or

Privacy concern is always A Big concern for

users

mishandling of sensitive personal information can result in regulatory fines, legal liability, and

damage to brand reputation.

(by Business Insider)

Bias and discrimination: AI algorithms are prone to inherent biases in the data they are trained

on, leading to discriminatory results in marketing (Johnson & Nguyen, 2018). For example,

biased algorithms can accidentally perpetuate stereotypes or pros and cons that target certain
demographic groups while excluding others. And this will likely lead to discrimination against

marginalized communities and contribute to social inequality.

Too much reliance on technology: Relying too much on AI-based marketing solutions will

weaken the creativity and strategic thinking of human marketers. It will likely lead to uniformity

of marketing campaigns, hindering innovation and differentiation in the market. Furthermore,

technical glitches or glitches in the AI system can disrupt marketing activities and affect a

brand's reputation.

Cost issue: Developing and using AI marketing can be expensive (CMS Wire, 2024), small

businesses will have difficulty implementing AI marketing and this will be a barrier for them.

Furthermore, the ongoing costs of maintaining and updating AI systems will increase over time,

further increasing the financial burden on small businesses.

So, without the financial resources to keep up with evolving AI technologies, they will fall

behind their competitors in terms of innovation and marketing effectiveness.

A good example of the

disadvantages of AI in

marketing is Tay,

Microsoft's AI chatbot.

Launched in 2016, Tay was

introduced by Microsoft as

an AI-powered chatbot on

Twitter. Tay is designed to

interact with users, learn

from conversations, and

imitate the language patterns of a teenage girl. But just a few hours after launch, Microsoft had

to shut down Tay because Tay started posting offensive and inappropriate content on Twitter.

The chatbot's responses became increasingly agitated and offensive, reflecting the toxic and

abusive language to which certain users were exposed. Tay's interaction quickly spiraled out of

control, attracting widespread criticism and negative attention.

Overall while AI offers exciting opportunities for marketing to optimize their strategies and

enhance customer experience, it also poses significant risks and challenges. From privacy

concerns and algorithmic bias to the erosion of human connection and creativity, the
limitations of AI in marketing cannot be ignored. Marketers must strike a balance between

leveraging AI's capabilities and minimizing its drawbacks by addressing issues related to privacy,

bias, transparency, and cost.

References:

- Cheng, X., Su, L., Luo, X. (Robert), Benitez, J. & Cai, S. (2022) "The good, the bad, and the

ugly: impact of analytics and artificial intelligence-enabled personal information

collection on privacy and participation in ridesharing", European Journal of Information

Systems, 31(3), pp. 339-363.

- Kumar, D. and Suthar, N. (2024), "Ethical and legal challenges of AI in marketing: an

exploration of solutions", Journal of Information, Communication and Ethics in Society,

Vol. 22 No. 1, pp. 124-144.

- Johnson, R., & Nguyen, T. (2018) "Unintended Consequences of AI in Marketing:

Implications for Consumer Trust and Brand Loyalty." Journal of Consumer Behavior,

15(3), pp. 265-281.

- Davenport, T., Guha, A., Grewal, D. et al. (2020) "How artificial intelligence will change

the future of marketing", Journal of the Academy of Marketing Science, 48, pp. 24–42.
- CMSWire (2024) "10 AI Customer Experience Statistics You Should Know About",

https://www.cmswire.com/customer-experience/10-ai-customer-experience-statistics-

you-should-know-about.

- Wolf, M.J., Miller, K. and Grodzinsky, F.S., 2017. Why we should have seen that coming:

comments on Microsoft's Tay" experiment," and wider implications. Acm Sigcas

Computers and Society, 47(3), pp.54-64.

- Business Insider (2014) "Chart of the Day: Invasion of Privacy Is a Big Concern Among

Google Users”, https://www.businessinsider.com/chart-of-the-day-invasion-of-privacy-

is-a-big-concern-among-google-users-2014-7.