A recent study by Infosys, titled “CMO Radar 2024,” reveals a significant disparity between the adoption of artificial intelligence (AI) in marketing and the actual value it delivers to organizations. While 73% of businesses have integrated AI into their marketing strategies, only 52% report achieving substantial business value from these initiatives. This gap indicates that merely adopting AI technologies is not enough; businesses need to implement them effectively to unlock their potential.
The study, which surveyed 2,600 marketing leaders across multiple regions including Australia, Germany, the Nordics, the UK, and the US, highlights the challenges enterprises face in translating AI capabilities into actionable outcomes. This divergence between adoption rates and value realization suggests that many organizations are still navigating the complexities of AI deployment rather than maximizing its benefits.
Notably, the report classifies Chief Marketing Officers (CMOs) according to their fluency with AI, identifying three categories: Leaders, Learners, and Laggards. Leaders, who make up only 13% of the surveyed CMOs, are proficient in data-driven decision-making, adept at leveraging predictive AI, and capable of enhancing their teams’ creativity through data and expertise. In contrast, 60% of CMOs fall into the Learners category, indicating they are still developing their AI skills, while 27% identify as Laggards, suggesting a significant reluctance or inability to harness these technologies.
Amid this backdrop, AI-fluent CMOs are poised to assume greater influence within their organizations. The study reveals that 62% of these leaders believe their role in shaping corporate strategies will continue to grow as they utilize AI to enhance customer experiences and drive marketing efficiencies.
Furthermore, the research demonstrates that the range of AI applications in marketing is broad. A staggering 96% of marketing leaders reported using AI for various activities, including content creation, personalized communications, campaign management, and analytics. Remarkably, 30% of leaders have implemented AI across all seven primary marketing functions examined in the report.
Looking ahead, the CMO Radar 2024 predicts that AI will yield quantifiable benefits in the coming 18 months. Specifically, businesses can expect productivity gains of 15%, cost savings of 13%, and an 11% increase in speed to market. This forecast underscores the necessity for CMOs to align their AI strategies with overall business objectives to harness these potential gains.
To bridge the value realization gap, the study outlines several tactics that AI-fluent CMOs employ:
1. Integration of AI into Business Processes: By embedding AI within marketing and business operations, organizations can utilize real-time data insights and adapt strategies as needed. This approach fosters a more agile marketing environment, crucial for responding to ever-evolving consumer demands.
2. Alignment with Business Goals: Successful CMOs connect AI initiatives with broader corporate and marketing objectives. This alignment ensures that AI capabilities enhance the marketing value chain, driving innovation in how brands engage with their audiences.
3. Effective Risk Management: With 43% of firms relying on ad hoc risk mitigation strategies, developing a systematic approach to managing risks associated with AI is vital. A comprehensive risk management framework can safeguard investments in AI, ensuring that marketing leaders can confidently pursue ambitious projects.
4. Optimized MarTech Stacks: Utilizing sophisticated marketing technology stacks, particularly those that emphasize real-time customer data platforms (CDPs), is essential for unlocking AI’s full potential. These technologies can enhance personalization and streamline marketing efforts, providing deeper insights into customer behaviors.
Satish H C, EVP and Chief Delivery Officer at Infosys, emphasized that the rapid evolution of AI is reshaping how businesses think about customer experience and marketing productivity. He noted that the findings from the study reflect how forward-thinking marketing leaders are innovating and establishing a holistic approach to their campaigns.
CMOs face the dual challenge of driving immediate business growth while demonstrating the long-term value of their brand initiatives. Sumit Virmani, EVP and Global Chief Marketing Officer at Infosys, acknowledged AI’s potential, particularly generative AI, to transform marketing effectiveness. He pointed out that the insights from CMO Radar 2024 shed light on tactics that can help CMOs remain competitive in an AI-driven landscape.
In conclusion, the Infosys study highlights the critical need for organizations to move beyond simply implementing AI technologies. By focusing on strategy alignment, effective risk management, and integrating AI into core business processes, companies can begin to close the value realization gap. Successfully navigating this transition will empower marketing leaders to leverage AI not only as a tool for efficiency but also as a catalyst for substantial business growth.
