TITLE OF THE PAPER “AI Shaping today and the future”-

EMERGING DOMINANCE OF AI IN

MARKETING

NAME OF TEAM MEMBERS Khushi Rai

Prajani Soundra Rajan

YEAR OF STUDY 3 UG

INSTITUTE & ADDRESS Madras Christian College, Tambaram,

Chennai

EMAIL ID raik2003@gmail.com

prajanirajan2002@gmail.com
 AI SHAPING TODAY AND THE FUTURE
EMERGING DOMINANCE OF AI IN MARKETING

INTRODUCTION

Currently, Artificial Intelligence and Metaverse are the hottest buzzwords in tech because of its
potential to change the way things are being done in various industries to an extraordinary level.
Replacing the traditional forms, AI is focusing on making softwares think like human minds with
intelligence and advancement in their functions. Search engines learn from the data entered by
users to provide as many relevant results as possible. In the same way, AI is widely used to offer
internet users personalised recommendations based on their previous searches or acquisitions. AI
has proved its significance and power in marketing on many levels including product optimisation,
consumer psychology and logistics. The rapid development in AI and machine learning and their
impact on marketing are showing no signs of slowing down.

In India, digital marketing is expanding at a 25–30% yearly rate. And if figures are to be accepted,
by the end of 2018, India had 500 million internet users. The rapid digitalization, online portals,
social media channels, etc. have all contributed to the unstoppable rise of digital marketing.

In this paper, the emerging dominance of AI and AI powered Influencers along with their impact
on the job market is discussed.

IMPORTANCE OF AI IN MARKETING

Studies by consultancies suggest that AI has enormous potential to contribute to global economic
output. They have viewed AI as a revolutionary and transformative force. The theories prove that
AI will bring a substantial boost in productivity by reducing costs. Today's AI platforms enable
marketers and organisations to develop rich customer insights from a range of data sources which
can help deepen customer connection, develop authentic engagement and drive more conversions.
SOURCE: https://medium.datadriveninvestor.com/10-applications-of-artificial-intelligence-in-digital-marketing-
a562a37db2bd

WORKING OF AI INFLUENCERS

One of the most trending and blooming market spaces is the social media wherein influencers
market products to their followers or subscribers. The concept of influencer marketing is now
growing exponentially. Influencers act as brand endorsers and contribute to a brand’s success or
failure. Non-human alternatives to celebrity endorsers are AI powered influencers. Although AI
powered influencers firstly came into being from the year 2016, only in recent times have they
gained the popularity. The data collected by AI powered influencers helps brands and companies
determine the market pace and use the exact same data to lure consumers.

According to Wikipedia, a virtual influencer can be a virtual persona or model. It is a computer-

generated fictional character that can be used for marketing, “but most frequently for social media
marketing, in lieu of human influencers.” For instance, instagram handles such as Lil Miquela has
1.5 million followers and Lil Wavi, who has his presence on Youtube, has 11,000 followers are
100% programmed social media influencers. Miqulea uses her account to advocate for social
issues such as Black Lives Matter and she is managed by a US startup. Another AI powered
influencer is Rozy who was created by a Korean media company known as Sidus Studio X. It is
said that her age is fixed at 22 years old and apparently she has celebrated her 22nd birthday
consecutively in two years. Kyra is the first Indian Virtual Influencer.

AI influencers provide meticulous speed and accuracy in driving the effectiveness and success of
a marketing campaign. Over the past five years, interest in virtual influencers has exploded,
drawing massive social media followings and collaborations with leading companies like Audi,
Bose, Calvin Klein, Samsung, and Chinese e-commerce behemoth Alibaba's TMall platform.

INDIA’S FIRST VIRTUAL INFLUENCER - KYRA

SOURCE: https://indianexpress.com/article/trending/trending-in-india/meet-kyra-indias-first-virtual-influencer-
with-nearly-100k-followers-on-instagram-7956632/

ETHICAL ISSUES

However, the reliability of the content created by such AI powered influencers can always be
questioned for many reasons. AI influencers cannot age and cannot have human experience,
however when they promote lifestyle, fitness or make-up, they show unrealistic and unattainable
standards for the next generation to attain. The pressing issue here is that these AI influencers do
not have a life or human tendencies, yet they promote a lifestyle for sentient persons. In order to
analyse certain issues, there has to be clarification whether virtual influencers are considered to be
persons and whether they can be held legally liable. Although the endorsements are made by non
sentient accounts, the repercussions of misrepresentation of products are eventually faced by
human beings.

THE JOB MARKET

AI can facilitate automation, contributing to downward pressure on the demand for labour. It is
more of a complicated discussion. Some worry that widespread job losses could result from hyper-
automation as the application of artificial intelligence (AI) expands. According to reports and
statistics, AI can create a loss of 75 million jobs in the coming future but if there are proper
modifications done for the change in circumstances because of AI, then it can create an opportunity
of 133 million new jobs as well. Workers may need to re-skill or up-skill and adapt to new ways
of organising tasks. Organisations and companies can contribute to this by training their employees
to adapt to the changing market.

However, Experts say that AI would disrupt the workforce rather than eliminate it and that it will
never completely replace people because it lacks essential traits like common sense, creativity, and
the capacity for effective communication.

Hence, the outcome is fairly uncertain.

CONCLUSION

Artificial Intelligence, one of the emerging and developing technologies, attempts to simplify
almost everything that involves manual human action. The reduction of human error can be the
main reason why AI is something that we need. An alternative approach towards accomplishing
certain goals is always welcomed in this developing period. Artificial Intelligence works by
gathering previously noted information and applying a certain set of algorithms, thus most of the
errors can be reduced and the accuracy level can be higher compared to any method.

The job prospect of an influencer requires emotional bonding and social relatability. When virtual
reality gets normalised, the human connect that is considered the core for marketing would become
obsolete.

However, considering the rising need for automation and also considering the humanitarian and
ethical issues relating to it, it is fair to say that the repercussions of involving AI in marketing can
be justified by the success rates of the same. However, guidelines must also be set in order to
regulate the content. By this way, the challenges can be reduced.

Ultimately, the inbound marketing strategy must carefully integrate AI content technologies and
use it to serve the customers more effectively and convert leads into customers quicker with the
help of humans as well. The most important aspect in terms of marketing is to utilise the most out
of AI by integrating both human resource and machine learning in its best way possible.
BIBLIOGRAPHY:

● https://www.thequint.com/tech-and-auto/cgi-influencers-earn-crores-in-sponsorships-but-
this-ai-dream-has-a-dark-side#read-more

● 1 Veronica L. Thomas & Kendra Fowler (2021) Close Encounters of the AI Kind: Use of
AI Influencers As
Brand Endorsers, Journal of Advertising, 50:1, 11-25, DOI:
10.1080/00913367.2020.1810595

● https://www.euronews.com/next/2022/06/15/will-artificial-intelligence-lead-to-
widepsread-job-losses

● Impact_of_automation_on_jobs.pdf

● https://www.oecd-ilibrary.org/docserver/7c895724-
en.pdf?expires=1662289780&id=id&accname=guest&checksum=536B916D2C09764D1
D3C2A51F95C488B