AI Marketing

Current Trend Of Marketing

Vishva Kharva 23MBA01011

 Current Trend Report on
“AI Marketing”
Prepared By
Kharva Vishva Ketan
Enrollment Number: 23MBA01011
Batch Year: 2023-2025
Under The Guidance of
Dr.Abha Kalaiya
Academic Year:2024
Submitted To
School Of Management
GSFC University, Vadodara.

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 Introduction:
Artificial Intelligence (AI) will become an integral part of every commercial
entity across the globe in the long term. The new trends in AI-driven automation reflect substantial
changes in the AI landscape. It is evident in the form of reconfigured ideas, interests, and investments
in the field of AI adoption by the enterprise. This technology is sophisticated enough to recognise
faces and objects, which has enormous implications for various business applications. For security
purposes, facial recognition can distinguish individuals; On the other hand, object detection can be
used to distinguish and analyse images. AI treats human images like cookies, allowing for more
personalised services based on customers’ preferences. Some businesses are experimenting with facial
recognition to diagnose their customers’ moods and, as a result, make appropriate product
recommendations.
AI is primarily concerned with user retention and lead conversion in digital
marketing. It can guide a user in the direction that aligns with the business’s goals by using intuitive
AI chatbots, intelligent email marketing, interactive web design, and other digital marketing services.
Several factors determine the impact of AI on digital marketing. ML, a subset of AI, is concerned with
computer programmes that access data and use it to learn independently. It compiles data from various
places, including social media accounts, menus, online reviews, and websites. AI then uses the
information to produce and deliver content relevant to the audience. AI software enables in-depth
online analysis of restaurants and their customers. By implementing AI into marketing strategy,
businesses can use the available data better and reach out to potential customers with attractive
commercials at more convenient times.

 Artificial Intelligence:
AI is a computer science technology that teaches computers to comprehend
and emulate human communication and behaviour. Based on the data provided, AI has
created a new intelligent machine that thinks, responds, and performs jobs the same way
people do. AI can do highly technical and specialised activities such as robotics, speech and
picture recognition, natural language processing, problem-solving, etc. AI is a collection of
several technologies capable of executing tasks that need human intelligence. When applied
to standard commercial processes, these technologies can learn, act, and perform with human-
like intelligence. It simulates human intelligence in machines, saving us time and money in
business transactions. AI is concerned with creating intelligent machines that can think and
act like humans. It provides exceptional opportunities for a wide range of industries. Every
industry mentioned is either terrified or enthralled by the arrival of AI. AI creates intelligent
machines and devices that can think and react like humans. This technology has been dubbed
the “next step” in the industrial revolution. It is believed that AI and ML hold solutions to
most of today’s problems. Furthermore, AI may aid in the prediction of future problems. AI
can create new technologies, industries, and environments. In a nutshell, AI simulates human
intelligence processes by machines. This may include learning, reasoning, and, most
importantly, the ability to self-correct. AI can analyse, comprehend, and make decisions. It is
for existing user data and is used to make market predictions and predict user behaviour. It is
also known as data forecast, and organisations worldwide use it to fine-tune their sales and
marketing strategies to increase sales. Most AI applications in marketing nowadays employ
ML, from personalising product suggestions to assisting in discovering the most successful
promotion channels, estimating churn rate or customer lifetime value, and building superior
customer groups.

 Need for Artificial Intelligence:

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 AI is a fascinating and cutting-edge technology that complements a company’s
current content strategy. This technology is a broad term that encompasses a wide range of
technologies such as natural language processing, ML, deep learning, computer vision, and
many others. ML significantly impacts the digital marketing scenario because of its ability to
analyse data and provide analytical tools. As a result, it assists marketing teams in conducting
needs-based analyses. Businesses that use AI tools save time by focusing on other aspects of
digital marketing. AI is a vast and ongoing technological evolution with far-reaching
consequences. As a result, it is advised to embrace AI in digital marketing to foster innovation
and improve productivity in the coming years. Marketers can use AI to gain deeper consumer
insights and better understand how to categorise and drive customers to the next step in their
journey, providing the best possible experience. Marketers can increase ROI without spending
on ineffective attempts by thoroughly examining consumer data and knowing what they truly
want. They can also avoid wasting time on mind-numbing advertising that irritates clients. AI
will personalise marketing in several ways. Many firms are already using AI to personalise
their websites, emails, social media posts, videos, and other materials to better respond to
customer demands. One of the primary goals of AI is to automate jobs that formerly needed
human intellect. This decrease in the number of labour resources required by an organisation
to execute a project, or the amount of time an individual must dedicate to routine chores,
allows for significant efficiency benefits.

Specific utilities of artificial intelligence in various marketing

segments:
The various primary marketing segments of AI initiatives are depicted in Fig. Pricing,
strategy and planning, product, promotion, and place management have been vital in targeting AI-
based systems in marketing scenarios. The importance and significance of other issues such as
targeting and positioning, situations, and thinking models towards the product design and end-
customer needs have been targeted as essential aspects of marketing for AI applications. Marketers
use AI to increase client demand. Customers have a positive user experience through integrated
applications that employ machine intelligence. It keeps track of purchases, including where and when
they are made. It can analyse the data and provide customised marketing messages to customers.
When a user visits a nearby retailer, these messages contain suggestions and special offers to improve
the customer’s average order value. Marketing gives the company a competitive advantage by using
an integrated approach to system automation. Decision-making and client micromanagement are
advantages of the AI marketing approach. Data is critical for improving the patterns of material
recommended to customers by ML algorithms. Programmatic media bidding is the automated
procedure for buying and selling internet advertising ads. These computer-based models inherit ML
traits, utilise audience data, and present relevant advertisements to target buyers.

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 Various AI-based transformations for marketing sectors:
Different AI-based transformations have made the marketing domain more
impactful and impressive. Fig. exemplifies the various AI used to accomplish the several intended
functions for resolving the marketing issues in today’s competitive and advanced level marketing
publicising. Furthermore, data collection, thorough market analysis, digitalisation through AI
strategies, thoughtful understanding of customers, research and need finalisation in the market
domain, etc., are additional inputs for carrying out the AI implementation for handling the market
level tactics.
Marketers can use AI technology to identify trends and forecast them for the
future. Based on these facts, they can then decide how to allocate their budgets and whom to target.
Brands can spend less on digital advertising and more time on high-value work. From the planning
stage to the conversion and customer loyalty phases, AI plays a critical role in the success of any
marketing campaign. As a result, companies that fully utilise AI will gain a competitive advantage.
Machines with capabilities replicating cognitive functions associated with the human mind, most
notably learning and problem-solving, have been developed. By analysing user data and assisting
marketers in making sense of user intent, AI is helping marketers decipher the ever-changing world of
content marketing. Marketers can use AI to generate content for simple stories such as stock updates
and sports reports.

AI may also be used to automate the hunt for software security. Software designers
could use AI to test for security flaws in their products, similar to how criminals look for
undiscovered exploits in operating systems. While selecting a tool, It is important to consider the level
of transparency required to understand why an AI platform made a particular decision. Based on the
algorithm, marketing teams may receive a clear report on why a certain decision was taken and which
data influenced the decision. In contrast, systems that use deep learning at a higher level may not be
able to provide definitive reasoning. AI algorithms learn from data to create a valuable new prediction
tool, and the AI output can be separated from the original training data. As a result, to fully manage

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the data and its value, any assets must likewise be controlled. The infrastructure that enables the
collection, storage and analysis of big data should be treated as an asset in the same way it is in any
other industry. Furthermore, specific industries, such as banking, have systemic ramifications and are
much more critical to safeguard owing to third-party links.

Artificial intelligence applications for marketing:

AI is employed in marketing campaigns across various industries, including
finance, government, healthcare, entertainment, retail, and more. Each use case yields different
outcomes, such as improved campaign performance, enhanced customer experience, or increased
marketing operations efficiency. Through programmatic advertising, marketers are using AI to address
various challenges. Programmatic platforms use ML to bid on real-time ad space relevant to target
audiences. AI may also aid in the reduction of mistakes in marketing procedures. So long as
supervision and instruction exist, AI can execute specialised activities more efficiently than humans.
AI is considerably more likely to result in a higher return on investment since it can substantially
speed up the process of marketing campaigns, cut expenses, and improve efficiency. This technology
can perform tactical data analysis faster than humans and use ML to arrive at quick decisions based on
campaign and customer context. It frees up time for team members to focus on strategic projects,
which can subsequently be used to guide AI-powered marketing. Marketers can use real-time
analytics to make better media choices rather than wait until the end of a campaign to make AI
decisions. Table 1 discusses the significant applications of AI applications for marketing.
AI for marketing is the best technique for predicting clients and improving the
customer journey by integrating customer data. AI advancements provide businesses with more
significant ways to do this. This technology can assist in developing more successful marketing
strategies, enhance the customer journey, and transform how firms attract, nurture, and convert
prospects. Marketers use AI to separate clients into key groups by segmenting them based on
particular niches. Machine-generated content and automated personalisation for the client journey are
governed by AI content production. AI-powered content curation enables us to engage visitors better
and stay on top of their thoughts by offering relevant material and added value while showcasing
industry expertise. It may be used for various purposes, including tailoring messages and making
better consumer suggestions.
AI applications in marketing allow for customising a website’s or app’s services
and content, the first step in driving personalised marketing campaigns and creating meaningful
consumer engagement. AI chatbots use ML to improve and get smarter over time continually. These
are vast, adaptable, and intelligent and give users a more lifelike experience. Chatbots benefit
organisations since they are excellent data collection tools that dramatically cut personnel
requirements and lower obstacles. Businesses use dynamic pricing modules to arrive at optimal prices
for their products or services to stay competitive and swiftly boost profitability. AI-controlled
dynamic pricing modules enable them to accurately price their services, even for short periods. It is
one of the most profitable AI applications in marketing. In marketing, AI is extremely useful in
carrying out retargeting methods. AI continually monitors prospects’ behaviour and buying history
and discovers patterns using ML and deep learning algorithms.

Discussion:
AI applications in marketing allow for customising a website’s or app’s services
and content, the first step in driving personalised marketing campaigns and creating meaningful
consumer engagement. AI chatbots use ML to improve and get smarter over time continually. These
are vast, adaptable, and intelligent and give users a more lifelike experience. Chatbots benefit
organisations since they are excellent data collection tools that dramatically cut personnel
requirements and lower obstacles. Businesses use dynamic pricing modules to arrive at optimal prices

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for their products or services to stay competitive and swiftly boost profitability. AI-controlled
dynamic pricing modules enable them to accurately price their services, even for short periods. It is
one of the most profitable AI applications in marketing. In marketing, AI is extremely useful in
carrying out retargeting methods. AI continually monitors prospects’ behaviour and buying history
and discovers patterns using ML and deep learning algorithms.
AI has become a perfect ‘enabler’ for marketing and sales professionals. It
processes and utilises the vast volumes of available data. It automates the creation of analytical
models, uncovers hidden insights, and uses cognitive reasoning to adjust programme actions. ML lets
marketers complete the big picture by bringing in all the data to create a mission-critical consumer
image in real time. It employs automated cognitive processes to solve complex data-rich challenges
and algorithms to initiate data-driven actions. ML assists in the discovery of patterns, trends, and
insights and then automatically acts on those discoveries to create micro-targeted campaigns.
Furthermore, it aids in the acceleration of the entire sales funnel by predicting which prospects will
convert, thereby optimising sales efforts.
AI in business can gather and analyse large amounts of data, drive consumer
insights, and enable quick and efficient decision-making. AI combined with big data, IoT, and the
human brain has the potential to expand the boundaries of marketing. AI allows businesses to collect
data, conduct more in-depth analyses, and take action based on practical information usage. AI may
be the best investment in a professional career as a marketer. Deep learning is central to marketing AI.
It refers to Significant applications of Artificial Intelligence (AI) for Marketing.
(1) Digital Marketing:
AI has a massive influence on digital marketing. Marketers may use AI to
understand consumer behaviour, actions, and indicators. As a result, they can target the
correct approach to the right individual in a timely and effective manner. Marketers can use
AI in marketing to quickly process large amounts of data from social media, emails, and the
Web. It may be used in conjunction with marketing automation to enable the translation of
data into choices, meaningful interactions, and a beneficial influence on company outcomes.
AI marketing aids in the collection of data, the gathering of consumer insights, the prediction
of customers’ next moves, and the making of automated marketing decisions.

(2) Reduction Of Human Mistakes:

AI has reduced human mistakes, particularly in the most critical area. This
technology can also develop and optimise content in various email formats that are nice and
relevant to the recipients. Without a doubt, AI exists to prevent human interaction, hence
eliminating the possibility of human error. Due to frequent data security issues, many firms
are concerned about their workers’ inability to protect client data and other essential corporate
data. AI can assist in addressing various issues by learning, adapting, and responding to the
cybersecurity requirements of an organisation. Many of the slash-and-burn resources
commonly used to design and implement a marketing strategy can be eliminated with AI.

(3) Connect Business Process:

AI uses the power of information systems to connect end-to-end business
processes and give a faultless experience. Marketers who harness AI’s potential are
exceptional performers in terms of marketing outputs in enterprises. AI applications in
marketing enable marketers to create and implement creative marketing strategies that are
more customised and humancentred. These techniques often thrill customers and make them
ardent brand supporters. Interaction designs may be more appealing with technology like AI,
allowing consumer micro-moments control. The rising benefits of AI enable organisations and
redefining marketing for a more elevated experience.

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(4) Analyse Massive Amount of Market data:
AI can analyse massive amounts of market data and predict what
action a user is likely to take next. It comprehends billions of search queries and assists in
determining how close a user is to make a purchase. AI also assists in the understanding of
shortcomings and taking appropriate action. The impact of AI and ML extends far beyond the
provision of simple tools. It fundamentally alters how to conduct our business operations. It
impacts businesses in such a way that it nearly triples their efficiency.

(5) Deliver Valuable Information:

AI technologies make things easier by examining every new piece of data and
delivering more relevant information to clients depending on their preferences. It must be
regarded as a tool for guiding marketing campaigns toward higher-level objectives. AI will
undoubtedly assist marketers in combining sophisticated technology and human ingenuity to
read, comprehend, and interact with modern customers on an individual level through hyper-
personalised, relevant, and timely messaging. Algorithms successfully assess a site visitor’s
activity to adjust and immediately bring up individualised ad material. Data is constantly
collected and utilised to drive future ad content modifications. By leveraging personal and
behavioural data, AI will empower sellers to focus more on outcomes and assist their clients.
Psychographics will provide more comprehensive insights into the goals, desires, and
purchasing patterns influencing customers’ decisions to choose a product or service using AI.

(6) Speeds up data processing:

AI speeds up data processing compared to human interaction, ensures accuracy
and security, and allows the team to focus on strategic goals to create effective AI-powered
campaigns. AI can gather and track real-time tactical data, allowing marketers to make
decisions in the present rather than waiting for campaigns to conclude. Based on the data-
driven reports, they may decide what to do next, making wiser and more objective judgments.
AI can assist in completing repetitive and tedious jobs. It cuts the time and takes personnel to
do such jobs while decreasing mistakes to zero. Hiring expenditures can be significantly
reduced while utilising available talent to do more vital duties.

(7) Make Customer Centred Choices:

The insights that AI gathers for organisations are valuable resources to
understand their consumers better and make customer-centred choices. AI offers external
market knowledge by evaluating enormous internet content on social media platforms, blogs,
etc. Marketers can quickly develop consumer personas using billions of data points from AI
systems. They include on-site interactions, regional specials, purchasing habits, previous
interactions/communications, referral sources, and other factors.

(8) Examine data about customer:

ML may examine millions of data points about a customer to decide the
optimum times and days of the week to contact them, the suggested frequency, the material
that piques their interest the most, and which email topics and headers produce the most hits.
It is possible to customise a website experience using sophisticated algorithms. AI can present
offers and information that are more relevant for each user type after evaluating thousands of
data points on a single user. Predictive models may be used in a variety of fields, including
marketing. These models can forecast the likelihood of a specific prospect becoming a client.
They can also indicate other factors, such as the stated price required to convert a customer or
which clients are more likely to make multiple purchases.

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(9) Digital Advertising:
AI is frequently employed in digital advertising to ensure maximum success;
it is used across platforms such as Facebook, Google, and Instagram to deliver the best
possible expert. Appropriate advertisements are offered by analysing user information such as
gender, age, interests, and other factors. Marketers may use AI technology to detect
microtrends and even anticipate trends. They will then be able to make strategic judgments.
Consequently, companies can decrease digital advertising waste and ensure that their
investment yields the most significant returns possible. AI influences the future of digital
marketing because it leverages the power of IoT and connected devices.

(10) Deliver the Right Message in time:

AI solutions give marketers a better understanding of their customers and
prospective customers, allowing them to deliver the right message to the right person at the
right time. Creating a truly comprehensive profile is collecting data during each consumer
interaction. Marketers can use AI solutions to refine marketing campaigns and build highly
personalised content by taking these profiles a step further. AI can tap into the abundance of
consumer data hidden in keyword searches, social profiles, and other online data for more
innovative and effective digital ads.

AI digital marketing and data analysis strategies are far more efficient and
accurate than human capabilities. It enables personalising the audience’s user experience,
engaging them, and increasing eCommerce sales. AI collects, analyses, and forecasts user
behaviour. With this information, brands can target advertisements based on user’s
preferences. AI is a highly beneficial tool in content marketing and, quite possibly, the
epicentre of content development’s future. There is still much work before AI can function
autonomously without human intervention. AI and humans can work together to significantly
reduce costs, increase efficiency, and boost organisational productivity. Incorporating AI into
traditionally organised analytics can open up a new universe of possibilities. Understanding,
explaining, and predicting consumer behaviour are examples of recent implementations.

AI technologies analyse large data sets by employing advanced computer

techniques and cutting-edge computing power to extract insights from accumulated data. AI
can help with email marketing campaigns by speeding up, improving, and simplifying the
process. Previously, digital marketing strategists were sceptical of the role of AI in digital
marketing. However, as technology advances and marketing becomes intuitive, AI’s
usefulness quickly becomes the focus of attention and an intricate part of what it means to be
a digital marketer. Several successful brands have already begun to adopt and use AI tools as
part of their digital marketing strategy. Certain brands use AI to guide customers to relevant
products and services in their digital marketing. ML has progressed to the point where it can
quickly understand a customer’s behaviour. As a result, the apparatus’s quick, predictive
behaviour assists marketers in making informed decisions and solving future problems with
the collected data.

Modern marketing depends on a deep understanding of customer demands and

preferences and the ability to act quickly and effectively on that knowledge. Because of its
ability to make real-time, data-driven decisions, AI has gained traction among marketing
stakeholders. However, marketers must be cautious when deciding how to best integrate AI
into their campaigns and procedures. The research and application of AI tools are still in their
infancy. As a result, a few concerns should be considered when incorporating AI into
marketing. AI does not know which activities to perform to fulfil marketing goals. They will

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 require time and instruction to learn about the company’s goals, customers’ preferences,
historical patterns, and the overall setting and acquire expertise.

Marketing teams must guarantee that businesses utilise customer data

responsibly and follow the rules. When it comes to AI, this is a challenge. Unless the
technologies are expressly developed to follow particular legal requirements, they may go
beyond what is permissible when exploiting customer data for personalisation. AI in
marketing is growing, but significant obstacles accompany it. AI is designed to sift through
massive volumes of data and conduct a variety of computations. ML and deep learning as AI
components need sturdy hardware and a large computing capacity to run calculations fast. AI
is no longer a revolutionary concept among technology enthusiasts, researchers, and students.
However, just a few individuals know AI’s potential and benefits.

When it comes to AI, there are also significant competence disparities. Instead
of being narrowed, these skill disparities are increasing. Data science courses concentrating
on AI development have grown more common despite a minor increase in interest in AI.
However, more brilliant individuals will be necessary to allow every firm to enter AI. For
many people, AI is still a novel technology. It will be difficult for them to develop faith in AI.
People are hesitant to trust if they do not understand how AI algorithms generate judgments.
Suppose AI systems are not trained on high-quality, timely, representative data. In that case,
the tool will make poor decisions not aligned with user preferences, reducing the instrument’s
utility. Consumers and regulatory authorities are pushing down on how businesses utilise their
data.
Conclusion:
AI refers to techniques that allow machines to perform cognitive functions that
require human intelligence. These include learning, reasoning, and interacting with the machine’s
surroundings. ML and deep learning are two of the most well-known AI techniques. AI can create a
more personalised brand experience, making cultivating user engagement and loyalty easier.
Marketers use language-based AI as sales tools, payment processors, and engagement managers to
improve the user experience. Instead of figuring out the purchase process independently, customers
can now rely on chatbots to do it for them. Languagebased AI is rapidly improving, “learning” from
previous experiences and automatically optimising to create an even better experience the next time. It
can assist marketers by identifying relevant content that users want to read. Personalising content
through observation, data collection, and analysis is now possible with the help of AI. This technology
in digital marketing assists marketers with email campaigns, allowing them to maximise results.
Email marketing is one of the digital marketing services that help reach the target audience at the right
time and ensure relevant conversion strategies. Analysing data is the most critical advantage of AI in
marketing. This technology will analyse massive amounts of data and provide marketers with real-
world and actionable insights.

Future Scope:
Marketers may use AI to evaluate consumer behaviours and patterns, anticipate future results,
and adjust advertising appropriately. It uses data, statistical algorithms, and cutting-edge AI
technology to forecast future trends. As AI systems examine more data, they learn how to
enhance their results and deliver the best answers over time. AI-powered ML algorithms can
analyse massive amounts of historical consumer data to identify which advertisements are
appropriate for clients and at what stage of the purchasing process. AI will give marketers the
optimisation benefits of deploying content at the perfect moment by utilising trends and data.
ML is a process that uses observations or data, such as direct experience, or instruction, to
recognise patterns in data that allow you to make better decisions in the future. ML aims to

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enable computers to learn automatically “on their own,” without human intervention or
assistance so that systems can adjust their actions accordingly.
In the future, marketers can use AI to create personalised experiences for
their customers and develop marketing analytics techniques to target potential customers. .
Every interaction a prospect or consumer has with a product or solution is recorded and used
to improve the product or service in the future. There will be a better time for marketers to
start experimenting with AI strategies to help them create highly personalised experiences for
their customers. With AI poised to continue growing across all industries and segments,
marketers should dedicate time and resources to experiment with strategies and ensure their
marketing organisation is set up for continued success, both now and in the future.

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