Just as a caterpillar metamorphosis into a butterfly, the martech world is experiencing a transformation with the widespread adoption of generative artificial intelligence (Gen AI). Suddenly, generative AI is everywhere and businesses seem to be scrambling to keep up. According to a Capgemini report, organisations surveyed have allocated 62% of their martech budget to AI-focused initiatives. In the martech world, customer expectations seem to be evolving at an unprecedented pace, demanding hyper-personalisation while simultaneously prioritising privacy and security. Gen AI aspires to solve a lot of martech problems specifically with marketing automation, content creation, and customer engagement. As per a LinkedIn report, marketers plan to use AI for day-to-day tasks, such as summarising lengthy articles and videos (88%), creating first drafts of written content and presentations (82%), and helping them problem solve (83%). In India, 68% of marketers use the technology today, with nearly half (45%) experimenting with tools such as ChatGPT. With India’s accelerating digital transformation, new-age consumers are increasingly engaging online. As the volume and frequency of these interactions peak, there is a need for the martech ecosystem to reinvision its capacity to be able to listen to and interact with customers on any channel. “Marketers now need to effectively listen to and interact with customers across all channels, at any given time, and scale, across multiple use cases, while maintaining operational efficiency. This challenge presents a compelling opportunity for the adoption of generative AI technologies, poised to redefine the future of marketing and all customer-facing teams,” Arun Pattabhiraman, chief marketing officer, Sprinklr, said.
As per a report by Adobe, 85% of executives surveyed say improving customer experience (CX) is a top priority, but many lack the strategic frameworks and technological infrastructure to deliver. While there is optimism about Gen AI’s potential, a significant gap exists between aspirations and reality. 54% of people surveyed believe that organisations will not take the steps needed to build ethical AI tools and systems and businesses must do more to prepare for gen AI.
Change is the only constant!
From the Data Protection and Digital Privacy Act (DPDP) to Gen AI and the depreciation of third-party cookies by Google, a lot is happening to reshape the marketing landscape. Adapting and strategising amidst these developments is a significant task. According to industry experts, businesses recognise the need for improved data insights and tech stack integration to leverage Gen AI for superior customer experiences. But do they have the workforce to translate this need into action? “ While Gen AI has the potential to democratise access to information, the best marketing professionals will be the ones with skills to ask the right questions and drive productivity,” Girish Ramachandra, founder and CEO, Shopalyst, said.
Experts believe that the biggest hurdle for marketers to adopt Gen AI is not skills or knowledge, but mindset. Once they reconcile to an ‘and’ mindset instead of ‘or’, they will be able to adopt and explore the benefits of Gen AI in their martech applications to the fullest. “Integrating AI literacy into team objectives and collaborating closely with IT and data science departments can equip professionals with the necessary tools and mindset to navigate the evolving martech ecosystem successfully,” Kavita G Rao, chief marketing officer, Findability Sciences, said.
As Generative AI and martech stack further evolves over the next few years, a large degree of automation of customer interactions across all functions is expected. “Companies will increasingly start relying on marketing to own and optimise most of this automated customer journey. For instance, one can integrate Gen AI with their social media management platform today or launch an omni-channel bot to resolve customer service requests, to automate as much as 40% of the tasks. We will see rapid evolution of the martech stack where a lot of Gen AI capabilities will be available natively within the platform vs adding new tools in your workflows,” Pattabhiraman stated.
The world of hyper-personalisation
The hope and expectations from Gen AI are high, businesses hope to go miles with this technology. It is believed that Gen AI will impact how companies grow revenue, conduct everyday operations, engage customers and employees, build new business models, and more. With the current digital environment which is more consent and privacy-oriented, delivering hyper-personalised content and advertising without intriguing personal user data is a task to accomplish. According to a report by Adobe, 56% of people surveyed believed that their digital experiences would be more personalised with Gen AI.
“Generative AI can revolutionise martech by introducing unprecedented levels of personalisation and efficiency. It can generate tailored marketing copy, social media posts, and targeted ads, reducing the time and effort required from marketing teams. It can automate the creation of customised content across multiple platforms, ensuring that messages resonate with individual preferences and behaviours,” Rao emphasised.
Furthermore, experts believe that Gen AI can also enhance predictive analytics, enabling marketers to anticipate customer needs and optimise their strategies in real time. Additionally, it streamlines operations by automating routine tasks, freeing up marketers to focus on strategy and creative endeavours. Moreover, the ability of Gen AI to learn and adapt from data ensures that marketing campaigns become more effective and efficient over time, driving significant improvements in customer engagement and return-on-investment (RoI) .
The ripple effect!
The integration of Gen AI presents both advantages and challenges for publishers, advertisers, and marketers. On the positive side, it is believed that Gen AI enhances targeted content delivery, increasing relevance for users and improving engagement. It also facilitates data-driven insights, allowing for more informed decision-making. “Additionally, concerns about data privacy and ethical AI use require careful navigation. Overall, while Gen AI offers substantial benefits in efficiency and personalisation, stakeholders must navigate challenges to ensure responsible implementation and maximise the technology’s positive impact,” Roshan S Bisht, co-founder and CEO, Asort.com, said.
Industry experts believe that the challenge for most publishers in integrating Gen AI will be that there is a potential for AI-generated content to become repetitive, potentially diminishing reader engagement. Although, Gen AI can unlock valuable insights from vast amounts of data, empowering organisations to make data-driven decisions and achieve better outcomes. However, there are also concerns about data privacy, algorithmic bias, and the potential for unintended consequences. “It is essential for organisations to carefully consider these factors and implement robust governance frameworks to mitigate risks and ensure ethical and responsible use of Gen AI,” Ashish Shah, founder and chairman, Vertoz, said.
To be cautious, industry experts opine that there are certain categories where implementing Gen AI may not be suitable, particularly those involving sensitive or ethical considerations, such as healthcare or law enforcement. For areas where Gen AI can be applied, extracting the right kind of data involves ensuring diversity and representativeness to avoid biases.
Connecting the dots!
Not every transition goes smoothly if said transition period often seems blurry and uncertain for any individual or nature in general. But adapting and surviving during this period can be rewarding and so is true with the integration of Gen AI in martech. As per industry experts this sudden wave of Gen AI requires strategic planning while implementing the technology and before onboarding any new technology it is necessary to train the human resource. “The future appears to hold great potential for Gen AI and to be disruptive. Gen AI will primarily affect three areas of change: service delivery, personalisation, and content production. It is essential to develop staff by upskilling rather than merely supplementing,” Rishi Sharma, CMO, Bonito Designs, said.
Historically, differences in marketing budgets often created vastly different campaign outcomes. It is believed that generative AI is going to be a great leveller as marketing campaigns will be as good as their prompts. Businesses will be able to create videos using AI which historically required two-three months and large budgets . “I expect more original thinkers- who can master prompt engineering- will outshine all other marketers. To excel, marketers must hone their ingenuity and constantly experiment with new tools. CMOs can facilitate this by organising generative AI hackathons that can provide a platform for collaborative brainstorming within the marketing team,” Pattabhiraman said.
Who will win the race?
In this cluttered market, positioning oneself as a leader or building a brand will depend on the quality a business is providing to its customers. When two martech companies use generative AI, the effectiveness of the technology often boils down to how well each company utilises it. “Despite having access to the same resources, one company may gain the upper hand because it is about things like the expertise of a team, the quality of data, and the ability to fine-tune the algorithms for specific purposes. Additionally, a company culture, openness to innovation, and agility in responding to feedback can greatly influence their success with Gen AI,” Sharma added.
Experts believe that in the age of Gen AI, martech professionals will need to cultivate a diverse skill set that encompasses both traditional marketing expertise and proficiency in emerging technologies such as AI and ML. Additionally, they must possess strong analytical skills to interpret data insights and adapt quickly to evolving consumer behaviours. “Gen AI represents the future of martech, offering unprecedented opportunities for automation, personalisation, and efficiency in marketing operations. While traditional martech solutions focus on optimising processes and managing campaigns, Gen AI introduces a new paradigm that leverages advanced algorithms to anticipate customer needs, deliver hyper-personalised experiences, and drive strategic decision-making,” Shah added.