As businesses look to the future, the integration of Generative AI (GenAI) into marketing strategies has sparked significant interest. According to a recent global study by SAS and Coleman Parkes Research, while an impressive 90% of organizations plan to invest in GenAI for marketing by 2025, a staggering 90% of Chief Marketing Officers (CMOs) admit they do not fully grasp its potential impact on business processes. This disconnect reveals a critical barrier that may impede the adoption of advanced GenAI applications, hindering organizations from achieving optimal efficiency and sustainable competitive advantages.
Currently, 75% of marketers have incorporated GenAI into their daily operations. Interestingly, marketing departments are leading the charge, outpacing other sectors like IT. However, many of these applications remain rudimentary. The majority of marketers use GenAI primarily for straightforward tasks such as copywriting, editing, and basic content generation. While these functions are undoubtedly beneficial, they represent only the tip of the iceberg regarding what GenAI can accomplish.
Take audience building, for example. Only 18% of marketers utilize GenAI for this purpose, and 16% employ it for customer journey mapping. Additionally, just 14% leverage the technology for pricing optimization, and 19% utilize it for targeted audience engagement. This underutilization suggests a significant potential for improvement and growth in employing GenAI for more complex marketing strategies.
The marketing sector has already reported substantial returns on investment from its current usage of GenAI. A notable 92% of marketers indicate improved personalization outcomes, while 89% experience heightened customer satisfaction and retention. Furthermore, 88% of respondents appreciate increased capabilities in processing large data sets, and 88% find greater accuracy in predictive analytics. These statistics emphasize that, despite a lack of sophisticated use, marketers who tap into the capabilities of GenAI already see promising results.
Jenn Chase, the CMO and Executive VP at SAS, highlights the paradox within the industry: “It isn’t surprising that marketers lead the way in GenAI adoption, as it lends itself to experimentation and creativity – both hallmarks of the marketing profession. However, it is disappointing that a lack of understanding at the CMO and senior management level is holding organizations back.”
To make the most of GenAI, education and training initiatives must be prioritized. By fostering a deeper understanding of GenAI among marketing leaders, organizations can leverage its potential, ultimately driving productivity, enhancing customer experience, and fostering business growth.
The outlook for GenAI adoption appears promising. Marketers anticipate expanding their use of this innovative technology within the next one to two years, citing key benefits such as 63% aiming for time and cost savings, 62% expecting improvements in risk management and compliance, and 60% looking to enable more efficient processing of large data sets. Among those who have fully adopted GenAI, the anticipation of immersive applications, including adaptive virtual reality, rises dramatically: one in five predicts such advancements, with that number increasing to three in ten among fully engaged users.
However, challenges remain. A significant hindrance to effective GenAI utilization is the lack of strategic direction from CMOs. Concerns around privacy and trust further complicate matters, with 61% of marketers identifying data security as their primary concern. Data privacy holds equal weight in their apprehensions. In fact, only one-third of organizations have established a comprehensive governance framework for data management, with fewer than one in ten extending this framework to GenAI implementation.
This gap indicates a pressing need for organizations to strengthen their governance and compliance frameworks. Jonathan Moran, head of martech solutions marketing at SAS, emphasizes, “A significant gap exists between the art of what is possible with GenAI for MarTech, and what is being accomplished today.” He points out that most organizations must invest in education, enablement, and data governance to foster trust between brands and consumers, which is crucial for successful marketing and customer experience initiatives.
In conclusion, while the potential of GenAI in marketing is profound, a concerted effort is necessary to overcome the barriers currently hindering its effective utilization. By prioritizing education and robust governance, marketers can unlock the full spectrum of GenAI’s capabilities, ensuring they not only keep pace with technological advancements but also pave the way for innovative marketing practices that resonate with today’s consumers.