You’d have to be living under a rock in order not to have heard about the extreme buzz around AI’s recent impact on marketing. Even though it’s been around for a while, and has always been a hot topic, there have been major updates in AI. Especially those that affect the marketing and advertising industry.
Today, we are going to discover the pros and cons of artificial intelligence in business.
The Basics of AI
Artificial intelligence creates smart machines that are programmed to learn and adjust to their surroundings and find patterns and correlations through the help of data analysis. AI then uses these predictive analytics to anticipate possible future behavior and consequences. AI is composed of two fundamental parts: deep learning and machine learning (making more efficient decisions).
There are many uses for AI in marketing and sales, but there are also many challenges to overcome. Let’s explore the pros and cons of artificial intelligence.
Pros of AI
You’ll be glad to hear that one of the things artificial intelligence is absolutely ideal for is completing tedious tasks. AI is the perfect solution for repetitive, administrative tasks that take up more time day-to-day than we would all like to admit. Boosting your marketing efforts with the latest AI marketing tools can deliver more effective results.
Automating processes gives marketing teams their precious time back. They can now spend more time on content creation, developing digital marketing campaigns and becoming more productive overall.
Reduction in Errors
Data analysis plays a key role in artificial intelligence, as it allows AI systems to uncover patterns and correlations from large amounts of data collection that would be difficult for humans to detect. This helps AI systems make more accurate predictions and better decisions.
Once you’ve integrated AI into your business operations, you’ll find that there are less chances for typos and errors. How? Well, AI can feed high quality data into your Customer Relationship Management (CRM) which eliminates typos. That means no lost customer data: email addresses, names, etc. This is very helpful for customer service teams as well as marketing teams.
Customer Behavior is Now More Predictable
At any given time, there is always a wealth of data at your fingertips to gain critical customer insights from, however no one has the time to filter through all this data. Customer data can also be very scattered and unorganized making it difficult to sift through the information.
Now thanks to AI, you can create marketing strategies by quickly analyzing client behavior and identifying patterns based on vast amounts of data. This will save you both time and money.
These strategies can lead to increased website traffic and even higher conversion rates when using artificial intelligence in marketing.
Improved Customer Response Time
You’ve most likely taken advantage of this benefit several times already. Chatbots are the prime example of the adoption of AI technology in marketing. They allow you to interact with your consumers or potential customers 24/7 whenever they are on your website.
Chatbots can quickly answer FAQs which can provide a great user experience. That being said… Customers do not like communicating with robots, but we will get into more of that below.
Automated Data Personalization Is Now Possible
AI can help you collect demographics, location, and even buying history that will allow you to personalize your digital marketing campaigns in real-time. With these predictive analytics, you can send the right message at the right time which will help you convert more leads into customers. This will improve customer engagement and the customer experience.
Cons of Artificial Intelligence In Marketing
Human Guidance is Still Necessary
AI requires programmers that are well versed in how it functions before it can be executed. Hiring new staff or consultants that specialize in this technology may be necessary in order to successfully incorporate AI into your business efficiently.
Another option would be to train your current employees to learn an entirely new skillset which usually comes with a raise. Either way, human intervention still plays a major part in implementing artificial intelligence into your operations.
Artificial intelligence now has the capacity to handle tasks such as writing content. These marketing tools, like ChatGPT, are helpful at creating drafts but they don’t hold a candle to human’s ability to convey a brand’s message. When it comes to the final draft or a niche topic, you’ll need a human’s discernment for readability, flow, and high quality writing.
Customers Don’t Like Chatting With Robots
As we mentioned above, Chatbots can be very helpful for simple questions 24 hours a day, but they can only hold a conversation for so long before a customer can start to get frustrated. This usually ends up having the adverse effect of what was intended.
AI has made it easier for business owners to scale their operations and processes, but there’s no replacing human resourcefulness when it comes to customer experience and communication in general.
Lastly, another one of the negatives of AI is concerns with data security. Despite its benefits, AI definitely comes with skepticism due to worries of identity theft and data breaches.
Integrating AI into business processes obviously comes with data privacy issues because when there’s enormous amounts of data being collected and analyzed, there’s a risk that it may be mishandled or misused, which is a major concern for customers. A data breach could ruin your brand’s reputation and even force you to pay fines.
Tips on How to Successfully Handle The Emergence of AI
It is safe to say that artificial intelligence has already had an impact on marketing, but AI still has a long way to go so it’s important to tread lightly.
Starting small will allow companies to understand the best ways to implement AI into existing marketing systems and processes while maximizing ROI and minimizing risk.
While we are on the topic of minimizing risk, it’s crucial to remember to keep data security a priority for every business. Following compliance standards, like General Data Protection Regulation (GPDR), and implementing security measures such as encryption and regular audits can protect customer data from unauthorized access and help keep everyone’s data safe.
Finally, incorporating AI simultaneously with human interaction is key. Utilizing the strengths of both artificial intelligence and human intelligence and ingenuity can give your business a competitive advantage. This way you can have the most successful AI marketing strategy and really boost your digital marketing efforts.