The Role of Artificial Intelligence in Modern Marketing
A Review of Current Technologies, Applications, and Challenges
DOI:
https://doi.org/10.58445/rars.1417Keywords:
AI, MarketingAbstract
This research paper examines the transformative role of artificial intelligence (AI) in marketing, emphasizing its capabilities in prediction, analysis, and generative AI. It reviews current AI technologies and their marketing applications through a comprehensive literature review and case studies from various industries. Research papers from Google Scholar were analyzed to illustrate AI’s effectiveness in marketing. AI enhances SEO by identifying optimal keywords, evaluating competitor strategies, and dynamically adjusting prices based on consumer behavior and market trends. Active targeting uses AI to predict consumer interests and personalize marketing efforts, as demonstrated by Kellogg’s and ASOS, leading to increased sales and customer engagement. Generative AI is revolutionizing marketing by creating engaging content, from slogans to videos. AI-generated advertisements are as effective or more creative than human-made ones. Companies like Heinz and Coca-Cola have successfully utilized AI for branding, while MTV's use of AI-powered video content has enhanced viewer engagement. AI-generated emails and chatbots also significantly improve customer interaction and retention. In the broader context, the research highlights challenges such as biases in AI systems, data privacy concerns, and integration issues. It also addresses the need for a shift in workforce skills towards AI management. The findings underscore AI's potential to revolutionize marketing strategies, making them more efficient and effective while emphasizing the necessity for transparency and ethical considerations to ensure sustainable growth.
References
Abbott, R., & Rothman, E. (2023). Disrupting creativity: Copyright law in the age of generative artificial intelligence. Fla. L. Rev., 75, 1141.
Abdikhakimov, I. (2023, June). Unraveling the Copyright Conundrum: Exploring AI-Generated Content and its Implications for Intellectual Property Rights. In International Conference on Legal Sciences (Vol. 1, No. 5, pp. 18-32).
AI pricing: how much does AI cost in 2024? | Future Processing. (2024, March 27). Www.future-Processing.com. https://www.future-processing.com/blog/ai-pricing-is-ai-expensive/#:~:text=AI%20project%20costs%20are%20influenced
Ahuja, V. K. (2020). Artificial Intelligence and Copyright: Issues and Challenges. ILI Law Review Winter, (2020).
Aldoseri, A., Al-Khalifa, K. N., & Hamouda, A. M. (2023). Re-thinking data strategy and integration for artificial intelligence: concepts, opportunities, and challenges. Applied Sciences, 13(12), 7082.
Almeida, P. G. R., dos Santos, C. D., & Farias, J. S. (2021). Artificial intelligence regulation: a framework for governance. Ethics and Information Technology, 23(3), 505-525.
Anica-Popa, I., Anica-Popa, L., Rădulescu, C., & Vrîncianu, M. (2021). The integration of artificial intelligence in retail: benefits, challenges and a dedicated conceptual framework. Amfiteatru Economic, 23(56), 120-136.
Bawm, Z. L., & Nath, R. P. D. (2014, December). A Conceptual Model for effective email marketing. In 2014 17th International Conference on Computer and Information Technology (ICCIT) (pp. 250-256). IEEE.
Bhattarai, A. (2023). Exploring Customer Engagement through Generative AI Innovative Strategies in Digital Marketing Campaigns. Quarterly Journal of Emerging Technologies and Innovations, 8(12), 1-9.
Bhima, B., Zahra, A. R. A., Nurtino, T., & Firli, M. Z. (2023). Enhancing organizational efficiency through the integration of artificial intelligence in management information systems. APTISI Transactions on Management, 7(3), 282-289.
Blouin, L. (2023, March 6). AI’s mysterious “black box” problem, explained | University of Michigan-Dearborn. Umdearborn.edu; The Regents of the University of Michigan. https://umdearborn.edu/news/ais-mysterious-black-box-problem-explained
Boughton, S. B. (2005). Search engine marketing. Perspectives in business, 2(1), 29-33.
Charles Gibson (2018); The Most Effective Digital Marketing Strategies & Approaches: A Review of Literature; Int J Sci Res Publ 8(2) (ISSN: 2250-3153). http://www.ijsrp.org/research-paper-0218.php?rp=P747171
Cooban, A. (2024, April 5). AI will shrink workforces within five years, say company execs | CNN Business. CNN. https://www.cnn.com/2024/04/05/business/ai-job-losses/index.html
Cui, Y. G., van Esch, P., & Phelan, S. (2024). How to build a competitive advantage for your brand using generative AI. Business Horizons.
Curry, R. (2023, December 16). Recent data shows AI job losses are rising, but the numbers don’t tell the full story. CNBC. https://www.cnbc.com/2023/12/16/ai-job-losses-are-rising-but-the-numbers-dont-tell-the-full-story.html
Davenport, T., Guha, A., Grewal, D., & Bressgott, T. (2020). How artificial intelligence will change the future of marketing. Journal of the Academy of Marketing Science, 48, 24-42.
Davenport, T. H., & Mittal, N. (2022, November 14). How Generative AI Is Changing Creative Work. Harvard Business Review; Harvard Business review. https://hbr.org/2022/11/how-generative-ai-is-changing-creative-work
De Bruyn, A., Viswanathan, V., Beh, Y. S., Brock, J. K. U., & Von Wangenheim, F. (2020). Artificial intelligence and marketing: Pitfalls and opportunities. Journal of Interactive Marketing, 51(1), 91-105.
Dencheva, V. (2023, January 6). Global AI in marketing revenue 2028. Statista; Statista. https://www.statista.com/statistics/1293758/ai-marketing-revenue-worldwide/#:~:text=In%202021%2C%20the%20market%20for
Dumitriu, D., & Popescu, M. A. M. (2020). Artificial intelligence solutions for digital marketing. Procedia Manufacturing, 46, 630-636.
ENACHE, M. C. (2021). Machine Learning for Dynamic Pricing in e-Commerce. Economics and Applied Informatics, (3), 114-119.
Fountaine, T., McCarthy, B., & Saleh, T. (2019, June 18). Building the AI-Powered Organization. Harvard Business Review. https://hbr.org/2019/07/building-the-ai-powered-organization
González García, C., Núñez-Valdez, E., García-Díaz, V., Pelayo G-Bustelo, C., & Cueva-Lovelle, J. M. (2019). A Review of Artificial Intelligence in the Internet of Things. International Journal of Interactive Multimedia and Artificial Intelligence, 5(4), 9. https://doi.org/10.9781/ijimai.2018.03.004
Green, D. C. (2003). Search Engine Marketing: Why it Benefits Us all. Business Information Review, 20(4), 195–202. https://doi.org/10.1177/0266382103204005
Harkness, L., Robinson, K., Stein, E., & Wu, W. (2023, December 5). How generative AI can boost consumer marketing | McKinsey. McKinsey & Company; McKinsey & Company. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/how-generative-ai-can-boost-consumer-marketing
Hoffman, C. von. (2023, June 14). AI and marketing: What the stats show. MarTech; Third Door Media. https://martech.org/ai-and-marketing-what-the-stats-show/
Huang, M. H., & Rust, R. T. (2021). A strategic framework for artificial intelligence in marketing. Journal of the Academy of Marketing Science, 49, 30-50.
Hudders, L., Van Reijmersdal, E. A., & Poels, K. (2019). Editorial: Digital advertising and consumer empowerment. Cyberpsychology: Journal of Psychosocial Research on Cyberspace, 13(2). https://doi.org/10.5817/cp2019-2-xx
Kaczorowska-Spychalska, D. (2019). How chatbots influence marketing. Management, 23(1), 251-270. https://doi.org/10.2478/manment-2019-0015
Kee, A. W. A., & Yazdanifard, R. (2015). The Review of Content Marketing as a New Trend in Marketing Practices. International Journal of Management, Accounting & Economics, 2(9).
Khoa, B. T. (2021). The impact of chatbots on the relationship between integrated marketing communication and online purchasing behavior in the frontier market. Jurnal The Messenger, 13(1), 19-32.
Kietzmann, J., Paschen, J., & Treen, E. (2018). Artificial intelligence in advertising: How marketers can leverage artificial intelligence along the consumer journey. Journal of Advertising Research, 58(3), 263-267.
Kshetri, N., Dwivedi, Y. K., Davenport, T. H., & Panteli, N. (2023). Generative artificial intelligence in marketing: Applications, opportunities, challenges, and research agenda. International Journal of Information Management, 102716
Kumar, M., & Kapoor, A. (2023). Generative AI and Personalized Video Advertisements. Available at SSRN 4614118.
Marr, B. (2019, November 11). 13 Mind-Blowing Things Artificial Intelligence Can Already Do Today. Forbes; Forbes. https://www.forbes.com/sites/bernardmarr/2019/11/11/13-mind-blowing-things-artificial-intelligence-can-already-do-today/
Maynard, M. (2023, June 23). Council Post: Will AI Lead To The End Of Marketing Jobs? Forbes. https://www.forbes.com/sites/forbesagencycouncil/2023/06/23/will-ai-lead-to-the-end-of-marketing-jobs/
McCoy, K. (2023, August 7). AI’s black box problem has clients cautious but curious, agency execs say. Digiday. https://digiday.com/marketing/ais-black-box-problem-has-clients-cautious-but-curious-agency-execs-say/
Menon, S. (2023, December 1). Council Post: Why AI Is Popular Now—And Two Ways To Use It Better. Forbes; Forbes. https://www.forbes.com/sites/forbestechcouncil/2023/12/01/why-ai-is-popular-now-and-two-ways-to-use-it-better/
Mijwel, M. M. (2015). History of Artificial Intelligence Yapay Zekânın T arihi. Computer Science,(April 2015), 3-4.
Norris, P. (2024, April 13). 10 Impressive Examples of AI in Marketing - Social Media Strategies Summit Blog. Blog Social Media. https://blog.socialmediastrategiessummit.com/10-examples-of-ai-in-marketing/
Ntoutsi, E., Fafalios, P., Gadiraju, U., Iosifidis, V., Nejdl, W., Vidal, M. E., ... & Staab, S. (2020). Bias in data‐driven artificial intelligence systems—An introductory survey. Wiley Interdisciplinary Reviews: Data Mining and Knowledge Discovery, 10(3), e1356.
Olavsrud, T. (2022, April 15). 9 famous analytics and AI disasters. CIO. https://www.cio.com/article/190888/5-famous-analytics-and-ai-disasters.html
Onyango, K. E. N. N. E. D. Y. (2016). Influence of digital marketing strategies on performance of cutflowers exporting firms in Kenya.
Orland, K. (2024, January 12). Lazy use of AI leads to Amazon products called “I cannot fulfill that request.” Ars Technica. https://arstechnica.com/ai/2024/01/lazy-use-of-ai-leads-to-amazon-products-called-i-cannot-fulfill-that-request/
Page, M.J., McKenzie, J.E., Bossuyt, P.M. et al. The PRISMA 2020 statement: an updated guideline for reporting systematic reviews. Syst Rev 10, 89 (2021). https://doi.org/10.1186/s13643-021-01626-4
Pankka, C. (2023). The Extinction of Marketers? The Effectiveness of ChatGPT Slogans in Comparison to Human Equivalents (Doctoral dissertation, Master’s Thesis at Hanken School of Economics, Helsinki, Finland).
PraveenKumar, S., & Gunaseelan, D. (2016). Misleading advertisements and issues. Journal Impact Factor, 7(2), 475-483.
Preet Kaur, F. (2024, April 28). AI in Marketing: 10 Creative Examples and Use Cases. Mailmodo. https://www.mailmodo.com/guides/ai-in-marketing-examples/
Puro, P. (2013). Content marketing and the significance of corporate branding.
Quarles, S. (2023, June 26). BofA Survey Shows 59% Of US Internet Users Are Already On ChatGPT - Business News. Business News; Business News. https://biz.crast.net/bofa-survey-shows-59-of-us-internet-users-are-already-on-chatgpt/
Reis, L., Maier, C., & Weitzel, T. (2022, June). Chatbots in Marketing: An In-Deep Case Study Capturing Future Perspectives of AI in Advertising. In Proceedings of the 2022 Computers and People Research Conference (pp. 1-8)
Rust, R. T. (2020). The future of marketing. International Journal of Research in Marketing, 37(1), 15-26.
Samantaray, A., & Pradhan, B. B. (2020). Importance of e-mail marketing. PalArch's Journal of Archaeology of Egypt/Egyptology, 17(6), 5219-5227.
Schijns, Jos M. C. (2008). Customer Magazines: An Effective Weapon in the Direct Marketing Armory, Journal of International Business and Economics, 8, 3, 70-78
Schwartz, O. (2019, November 25). In 2016, Microsoft’s Racist Chatbot Revealed the Dangers of Online Conversation. IEEE Spectrum. https://spectrum.ieee.org/in-2016-microsofts-racist-chatbot-revealed-the-dangers-of-online-conversation
Shankar, V., Grewal, D., Sunder, S., Fossen, B., Peters, K., & Agarwal, A. (2022). Digital marketing communication in global marketplaces: A review of extant research, future directions, and potential approaches. International Journal of research in Marketing, 39(2), 541-565.
Smuha, N. A. (2021). From a ‘race to AI’to a ‘race to AI regulation’: regulatory competition for artificial intelligence. Law, Innovation and Technology, 13(1), 57-84.
Soni, V. (2023). Adopting generative ai in digital marketing campaigns: An empirical study of drivers and barriers. Sage Science Review of Applied Machine Learning, 6(8), 1-15.
Spice, B. (2015, July 6). Fewer Women Than Men Are Shown Online Ads Related to High-Paying Jobs | Carnegie Mellon University Computer Science Department. Csd.cmu.edu. https://csd.cmu.edu/news/fewer-women-than-men-are-shown-online-ads-related-to-highpaying-jobs
Su, E. (2023, July 7). The Biggest Issues with Artificial Intelligence in Marketing Content. Single Grain. https://www.singlegrain.com/blog/ms/issues-with-artificial-intelligence/
Suvanto, E. (2023). Applications of Generative AI in Business.
Terrance, A. R., Shrivastava, S., & Kumari, A. (2017). Importance of Search Engine Marketing in the Digital World. ICITKM, 14, 155-158.
Tschider, C. A. (2020). Beyond the" Black Box". Denv. L. Rev., 98, 683.
Varsha, P. S. (2023). How can we manage biases in artificial intelligence systems–A systematic literature review. International Journal of Information Management Data Insights, 3(1), 100165.
Vinerean, Simona (2017). Content marketing strategy : definition, objectives and tactics. In: Expert journal of marketing 5 (2), S. 92 - 98.
Von Eschenbach, W. J. (2021). Transparency and the black box problem: Why we do not trust AI. Philosophy & Technology, 34(4), 1607-1622.
Yildirim, E. (2022). Text-to-image generation AI in architecture. Art and architecture: theory, practice and experience, 97.
Zhou, P., Wang, L., Liu, Z., Hao, Y., Hui, P., Tarkoma, S., & Kangasharju, J. (2024). A survey on generative ai and llm for video generation, understanding, and streaming. arXiv preprint arXiv:2404.16038.
Zohuri, B., & Rahmani, F. M. (2020). Artificial intelligence versus human intelligence: A new technological race. Acta Scientific Pharmaceutical Sciences (ISSN: 2581-5423), 4(5).
Downloads
Posted
Categories
License
Copyright (c) 2024 Shardul Marathe
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.