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Research Paper - Sara Haque 01-322222-029
Research Paper - Sara Haque 01-322222-029
Research Paper - Sara Haque 01-322222-029
Sara Haque
MBA – 2W
01-322222-029
Integrating AI in Digital Marketing: An investigation of
effectiveness in customer engagement and retention through
AI-Based marketing strategies.
Introduction:
In the digital era, Companies constantly endeavor to attract customers and increase the
retention rate through various digital marketing strategies. With the emergence of AI in the
digital marketing industry, Artificial intelligence has the potential to notably adapt the practices
in which customer engagement and conversions are conducted (Ransbotham, 2017) . Artificial
Intelligence (AI) has the competency to systematically process a large amount of data and can
efficiently achieve goals through learning (Kaplan & Haenlein, 2019) . AI has become a
fundamental component of business growth, and its use in marketing offers strategic potential.
(Martínez-López & Casillas, 2013) suggested several research areas from the perspective of
business marketing, which are essential to advancing the overall agenda. These areas include
development, innovation, and fostering creativity. On the other hand, Customer engagement
encompasses the various methods, techniques, and tools utilized to establish and uphold
The current business environment has become increasingly competitive, with large amounts
of data and scarce resources, leading companies to seek ways to make faster decisions. Artificial
intelligence (AI) has become a popular solution, as it promises to improve business intelligence
and performance (Selen et al., 2014). AI is transforming the way companies approach
marketing, as it offers a range of powerful tools and techniques for analyzing customer data and
campaigns, create more engaging content, and improve customer engagement and retention
(Zheng et al., 2021) One area where AI has demonstrated its effectiveness is in marketing,
particularly in social media marketing, which can help to increase revenues and reduce operating
costs. AI-based digital marketing allows businesses to target the right customers at the right time
(Ransbotham, 2017) Existing research has focused on how AI supports marketing execution,
including the automation of data collection, analysis, and the use of tools such as business
intelligence, chatbots, and sentiment analysis (Pitt et al., 2018). In terms of strategy, AI can assist
in making rational decisions and executing the best possible actions in a given situation (Russell
et al., 2016). Marketers aim to keep their products and services at the center of the consumer's
mind throughout the customer experience, with social media being a powerful platform for
customer engagement (Hollebeek et al., 2014). Social media can also be used to monitor
consumer reviews and behavior, which can help to create customized promotional campaigns
and increase conversion rates (Al-Natour et al., 2020). Understanding consumer behavior is
crucial for businesses to satisfy the needs and requirements of their customers. One of the key
benefits of using AI in digital marketing is its ability to automate repetitive tasks and processes,
freeing up marketers to focus on more strategic initiatives. For example, AI can help to identify
patterns and trends in customer behavior, enabling marketers to deliver more relevant and
personalized content (Sethi et al., 2019).There is a lack of comprehensive studies that have
investigated the benefits and challenges of AI in the context of organizational strategy for digital
marketing. While existing research has provided insights into the use of AI in marketing
execution, including data collection, analysis, and the use of tools such as chatbots and sentiment
analysis, there is a paucity of research on how AI can be used strategically to achieve business
objectives. Specifically, there is a need to explore the motivations for adopting AI, the
implications and advantages of AI in digital marketing, and the practical recommendations for
technologies has the potential to transform the customer engagement and marketing strategies of
businesses. However, it is still uncertain whether businesses should rely solely on AI to make
decisions or rather use AI as a tool to support their decision-making processes. Therefore, here
RQ.1 What are the potential benefits and challenges of using AI in digital marketing, and how
The potential benefits of using AI in digital marketing include increased efficiency and
accuracy, enhanced customer targeting and personalization, improved customer engagement and
retention, and greater insights into consumer behavior (Kaplan & Haenlein, 2019)(Ransbotham,
2017). Moreover, there are also several challenges, such as, potential ethical concerns related to
privacy and bias, and the difficulty in balancing the use of AI with human expertise (Sethi et al.,
2019). Further more, by addressing these challenges and leveraging the benefits of AI,
businesses can achieve overall objectives such as increased revenues, improved customer
collection and management of high-quality data, ensure transparency and accountability in the
use of AI, and continually monitor and adapt their strategies based on performance metrics(Pitt
et al., 2018). Additionally, organizations should consider the potential impact on employees and
customers and invest in training and education to ensure that stakeholders understand and
support the use of AI (Russell et al., 2016). Ultimately, the success of AI-based marketing
strategies will depend on the organization's ability to balance the use of AI with human expertise
RQ.3 What is the role of AI in making rational decisions and executing the best possible
AI can assist in making rational decisions and executing the best possible actions in a given
situation by analyzing large amounts of data and identifying patterns and trends that may be
difficult or impossible for humans to detect (Russell et al., 2016). By automating repetitive tasks
and providing insights into customer behavior, AI can also free up human resources to focus on
more strategic initiatives(Sethi et al., 2019). By leveraging the power of AI, organizations can
develop more effective marketing strategies that are aligned with overall organizational goals
The motivations for businesses to adopt AI-based marketing strategies include the potential
for increased efficiency, improved customer engagement and retention, and greater insights into
consumer behavior (Martínez-López & Casillas, 2013; Ransbotham, 2017). These motivations
align with business objectives such as increased revenues, reduced costs, and improved customer
satisfaction (Zheng et al., 2021) . Additionally, businesses may be motivated to adopt AI-based
2020)
RQ.5 To what extent should businesses rely on AI to make marketing decisions, and how can
Businesses should not rely solely on AI to make marketing decisions and should balance the
use of AI with human expertise and intuition (Ransbotham et al., 2017). While AI can assist in
data analysis and decision-making processes, human intuition and creativity are still necessary
for developing and executing successful marketing strategies (Zheng et al., 2021). Businesses
should also ensure that the use of AI aligns with ethical principles and transparent decision-
Based on the above, the research paper aims to identify the potential benefits and challenges
of using AI in digital marketing and explore how it can contribute to achieving overall business
objectives. Additionally, the research intends to provide practical insights and recommendations
for organizations seeking to implement AI-based marketing strategies and to contribute to the
existing literature. furthermore, this research aims to investigate the motivations for adopting AI
strategically and the implications and advantages of using AI in the marketing strategy to