How Gen AI is revolutionizing marketing landscape: Roadmap for increasing efficiencies

In this two-part series, Adgully seeks to understand the pros and cons of utilizing Gen AI in marketing, how it is helping to create targeted and personalized ads, the cost factors involved in utilizing Gen AI in marketing, how it is enhancing marketing efforts and impact and the various ways in which Gen AI is helping marketers, as well as the Do’s and Don’ts of using Gen AI in marketing.

According to a McKinsey report, Gen AI could contribute up to $4.4 trillion in annual global productivity. In the marketing sector alone, the productivity gains could increase marketing spend efficiency by 5-15 per cent, translating to approximately $463 billion annually.

Also read:

Gen AI in marketing: Super-smart assistant or privacy headache - The Pros & Cons

However, Gen AI is not without its downsides. According to digital marketing experts in the US, one of the biggest risks of utilizing Gen AI in marketing are legal and ethical concerns as per a report by NP Digital, along with serving wrong information, mechanical or similar content with a lack of human creativity and SEO.

A Forbes report suggests relying too much on AI for generating content can lead to the loss of the brand’s voice and its authenticity factor. It can also lead to communicating messaging that is in non-alignment with the values of the brand, requiring accurate quality control measures.

The cost factor in Gen AI for marketing

Elaborating on the cost factors that are involved in utilizing Gen AI for marketing and how it leads to the enhancement and impact of marketing efforts, Swati Nathani, Co-Founder, Team Pumpkin, said, “Investing in Gen AI for marketing isn’t cheap, but consider it a long-term investment. Implementing and maintaining AI models requires serious investment in technology, data infrastructure, and talent. However, it can supercharge your campaigns, saving you time and money in the long run. It empowers businesses to be more agile, data-driven, and customer-centric. While the promise of increased ROI is fascinating, businesses must carefully weigh these costs against potential benefits and ensure a clear return on their AI investment.”

Manjul Wadhwa, Founder and CEO, Anagram Media, added here, “If you are thinking about using Gen AI to help with your marketing, it is important to figure out the costs involved. Just like any other tool, the expenses will largely depend on how you integrate it into your marketing strategy. If you want to utilize Gen AI through a direct client-side interface like a subscription to a service, these costs are usually quite nominal. It's like paying a small monthly fee to have access to a powerful tool that can handle numerous tasks. But, if you’re looking to customize on top of Gen AI, you’ll have to bear API costs. This way you can tailor the solutions for your business needs and train it to perform specialized tasks. The costs here can be a bit higher, but they're comparable to other platforms offering similar capabilities. I would like to point out the rise of open-source models such as Meta’s Llama 3.1 as an interesting development. These foundational models are trained on a large set of parameters, similar to the ones used by top-tier AI models like GPT-40.”

Wadhwa further said, “Using an open-source model can be more cost-effective because you can train it on your data in the cloud, maintaining a high level of customization while keeping costs under control. Indulging in the high costs of developing an AI model entirely in-house is generally only feasible if you are a large enterprise with specific needs and substantial budgets. For most businesses, leveraging cloud-based training or existing models is much more cost-effective.”

Valay Lakdawala, Co-Founder & Director - Client Relations, Neoniche, noted, “The cost factors involved in using Generative AI (Gen AI) for marketing include technology, talent, data management, compliance, and integration services. Investing in AI platforms and tools, such as software licenses and cloud services, forms the backbone of the required infrastructure, enabling data analysis, content generation, and campaign management. Additionally, hardware and cloud services are necessary to handle large datasets and complex computations. Hiring skilled personnel, including data scientists and AI specialists, is essential for developing and maintaining AI systems. Training marketing teams to effectively use AI tools and interpret insights also incurs costs. Ensuring high-quality data through acquisition, cleaning, and integration from various sources is another critical expense. Ongoing maintenance and upgrades of AI systems are required to incorporate the latest advancements and security measures. Regular updates improve AI algorithms' performance and accuracy. Regulatory compliance is a crucial consideration, involving costs for implementing measures to protect data privacy and adhere to industry regulations.”

He further added, “This ensures the ethical use of AI and maintains consumer trust. Integration services are necessary to seamlessly incorporate AI solutions into existing marketing workflows and systems, which can require additional investment. Gen AI significantly enhances marketing efforts by automating repetitive tasks and accelerating campaign development, allowing marketers to concentrate on strategic planning and creativity. It enables the creation of highly personalized marketing messages through AI-driven analysis, dynamically adjusting strategies based on real-time data. This technology provides advanced insights into customer behaviour and predictive analytics, facilitating proactive marketing. By improving targeting precision and continuously optimizing performance, Gen AI increases return on investment (ROI). Additionally, it reduces the time spent on mundane manual tasks and research, enabling marketers to focus on innovation and strategic initiatives, ultimately boosting overall marketing effectiveness.”

Ambika Sharma, Founder & Chief Strategist, Pulp Strategy, added here, “When considering the cost factors of using Generative AI in marketing, several key elements come into play. No one AI tool is adequate for more than one aspect of Marketing, for us at Pulp Strategy this meant that we needed an innovation lab to create our patented ‘Human-centric AI Framework’ over 50 tools, which contribute to efficiency and creative edge. The initial technology investment, including AI software, can be substantial. Training employees to use these advanced tools and integrating AI into existing workflows also incurs costs. Despite these costs, the impact on marketing efforts is significant. Generative AI can substantially improve return on investment (ROI) It saves time by automating repetitive tasks, allowing marketing teams to focus more on strategic and creative aspects. AI also helps scalability, enabling marketers to reach larger audiences with personalized content without a proportional increase in resources.”

“The perceived financial barrier to adopting Generative AI is often overstated. While there’s an initial investment, many of the early experiments can be relatively low-cost. It's about being lean, starting small, learning, and then scaling. The real magic happens when you discover which AI tools perfectly align with your business goals. The payoff is immense. By automating routine tasks and gaining valuable insights from data, marketers can reallocate resources to more strategic and creative endeavours. This not only improves efficiency but also fuels innovation. Essentially, Generative AI is an investment in future-proofing your marketing efforts,” noted Neena Dasgupta, CEO & Founder, The Salt Inc.

According to Upasna Dash, Founder & CEO, Jajabor Brand Consultancy, “The cost factors involved in using Gen AI for marketing largely depend on the features and functionalities one wants to incorporate into the application. Basic apps with limited functionalities have lower development costs, while more feature-rich applications with advanced capabilities incur higher expenses. Key cost considerations include the choice of the technology stack, the size and expertise of the development team, the complexity of the content generated by the app (whether it is text, images, audio, or a combination), and the design aspects of UI & UX. Additionally, integration with external systems, testing, and quality assurance, as well as ongoing maintenance and updates, contribute to the overall cost.”

For Ritesh Saraf, Co-Founder & CEO, Promilo, “The main costs associated with using Gen AI in marketing include implementation, maintenance, and data acquisition. Implementation costs cover purchasing AI tools, integrating them with existing systems, and training staff. Maintenance involves ongoing expenses for software updates, system upkeep, and continuous AI model training to ensure accuracy and relevance. Additionally, acquiring high-quality data for AI to process can be costly, especially when dealing with large datasets or purchasing third-party data.”

He added, “Gen AI significantly enhances marketing efforts by automating routine tasks like content creation, campaign management, and customer segmentation. This automation not only increases efficiency but also reduces operational costs. By analyzing vast amounts of data, Gen AI provides deep insights into customer behaviour and market trends, enabling more informed decision-making. This data-driven approach allows marketers to create highly targeted and personalized campaigns, increasing engagement and conversion rates. As a result, Gen AI helps achieve a better return on investment (ROI) and improves overall marketing effectiveness. Moreover, its scalability allows businesses to expand their marketing efforts without a proportional increase in costs, making it a valuable tool for growth.”

According to Yasin Hamidani, Director, Media Care Brand Solutions, the cost factors include:

Initial Investment: High costs for AI infrastructure, software, and integration.

Data Management: Expenses for acquiring, storing, and managing large datasets.

Talent Acquisition: Hiring skilled data scientists and AI specialists.

Maintenance: Ongoing costs for software updates, hardware maintenance, and system optimization.

Training and Development: Continuous training for staff to effectively use AI tools.

Enhancing Marketing Efforts and Impact:

Personalization: Tailors ads to individual preferences, improving engagement and conversion rates.

Efficiency: Automates tasks like data analysis and customer segmentation, saving time and resources.

Insights: Provides actionable insights through data analysis, improving decision-making.

Scalability: Manages large-scale campaigns across multiple channels, ensuring consistent messaging.

Real-time Optimization: Adjusts campaigns in real-time based on performance data, enhancing effectiveness and ROI.

By streamlining processes and delivering more targeted campaigns, Gen AI significantly boosts marketing efficiency and effectiveness, leading to better customer experiences and higher returns on investment.

Joydeep Sen, Thinking Director, Speaking Mirror, noted, “The cost factors involved in utilizing generative AI for marketing primarily revolve around the initial investment in AI tools and platforms, ongoing maintenance, and the need for skilled personnel to manage and interpret AI outputs. While these costs can be significant, the return on investment often justifies the expenditure due to the enhanced efficiency and effectiveness of marketing strategies. Gen AI enables marketers to automate routine tasks, freeing up time and resources for more strategic initiatives. It also provides valuable insights through data analysis, allowing brands to make data-driven decisions that can lead to more impactful marketing campaigns. By enhancing the precision and personalization of marketing efforts, generative AI helps brands connect more deeply with their audience, resulting in increased brand loyalty and higher conversion rates. Generative AI is revolutionizing the marketing landscape by bridging the gap between data-driven insights and creative storytelling, empowering brands to engage with consumers on a deeply personalized level.”

Prashant Bhonsle, Founder of Kuhoo Edtech, pointed out, “AI has the potential to personalize education for students with varying learning needs by tailoring instructional approaches and resources to individual capabilities and preferences. AI systems can adapt the content in real-time, offering personalized learning paths that align with each student's unique skill set and learning pace. However, the implementation of AI technologies also presents challenges for educators, including the need for adequate training, access to reliable technology, and the ability to interpret AI-generated data effectively. Educators must navigate these hurdles to harness AI's full potential while ensuring that all students benefit from customized learning experiences.”

Do’s and Don’ts while utilizing Gen AI in marketing

Speaking about the numerous ways in which Gen AI is helping marketers as well as the Do’s and Don’ts while utilizing Gen AI in marketing, Swati Nathani said, “Gen AI is revolutionizing the marketing landscape, offering a powerful toolkit to enhance efficiency, creativity, and personalization, encouraging marketers to focus on higher-level strategic initiatives. However, successful AI integration requires a strategic approach. Setting clear objectives, continuous performance evaluation, and alignment with brand identity is essential. While AI undoubtedly amplifies marketing efforts, it should complement, not replace, human creativity and empathy.”

Valay Lakdawala noted, “It automates content creation, making it easier to produce blog posts, social media updates, and video scripts quickly and consistently. AI-powered chatbots and virtual assistants improve customer service by offering 24/7 support and collecting valuable feedback. In market research, AI analyzes trends, competitor actions, and customer sentiment to give marketers actionable insights. It also enhances sales forecasting by predicting future trends from past data, helping marketers plan more effectively. Additionally, Gen AI speeds up the creative design process by generating design elements and assets.”

According to him, the Do’s and Don’ts of utilizing Gen AI in marketing are:

Do’s:

Ensure Data Quality: Use high-quality data to train AI models for better results.
Maintain Human Oversight: Regularly check AI outputs to make sure they align with your brand and are accurate.
Prioritize Privacy: Implement strong data protection measures to keep customer information safe and comply with regulations.
Test and Iterate: Continuously test AI-driven campaigns and make improvements based on insights.
Educate Your Team: Train your marketing team to effectively use AI tools and understand AI-generated insights.

Don’ts:

Over-rely on AI: Don't depend too much on AI; human creativity and intuition are still important.
Neglect Ethical Considerations: Be mindful of ethical issues, such as avoiding biased algorithms and ensuring transparency.
Ignore Customer Feedback: Use customer feedback to refine AI-driven strategies and improve the customer experience.

Ambika Sharma commented, “Generative AI is aiding marketers in numerous ways, from scale in content generation to customer segmentation and predictive analytics. For example, it helps create personalized email campaigns, social content, and ad copy tailored to individual preferences, enhancing customer engagement. By analyzing customer data, AI helps identify distinct segments, allowing for more targeted messaging. Predictive analytics powered by AI forecast trends and consumer behavior, optimizing marketing strategies. Additionally, AI-driven chatbots and virtual assistants improve customer service by providing instant, personalized responses. Our Humanoid Yukti, by Pulp Strategy, is the only example of this advantage in large-scale customer interactions. However, to maximize the benefits of Gen AI, marketers must follow certain best practices. Ensuring data privacy and compliance with regulations is crucial. While leveraging AI, maintaining a balance between human creativity and oversight is essential to ensure content authenticity and emotional resonance. Continuous learning and refinement of AI models based on performance data and evolving consumer preferences are necessary. Ethical considerations must also be addressed, avoiding manipulative practices and ensuring transparency. Proper training for marketing teams is vital to effectively use AI tools and understand their limitations.”

Sharma’s Do’s and Don’ts include:

Use AI for High-Stakes Decisions Without Review: Don't use AI for critical decisions without human oversight, especially in regulated areas.
Rush Implementation: Take your time integrating AI into your marketing strategy to understand its capabilities and limitations.

In summary, Gen AI offers powerful tools to improve marketing efforts, but it's important to use it wisely, balancing automation with human oversight for the best results.

Neena Dasgupta shared, “Generative AI is a versatile technology, aiding marketers in content creation, customer service, personalization, and predictive analytics. It can generate engaging copy, provide instant customer support, and deliver tailored experiences. To maximize AI's potential, marketers must prioritize brand alignment, data quality, human oversight, and ethical considerations. For a scalable impact, marketers must ensure AI output aligns with the brand's voice and values. While AI can automate many tasks, it's the human element that will ultimately differentiate brands. Rather than rushing implementation, investing time in training your AI to fully understand your brand’s archetype, visual tone, and semantic map might be the wise road to take here.”

“Gen AI is revolutionizing the marketing landscape by assisting marketers in a multitude of ways, including content creation, content personalization, content ideation, automating customer service and support, market research and data analysis, and even business and lead generation,” said Upasna Dash.

Highlighting the Do’s and Don’ts while using Gen AI in marketing, Dash pointed out the following:

Do’s:

Prioritise data privacy and security: Ensure that all data used and collected by AI tools is handled responsibly, with robust measures in place to protect user information and comply with relevant regulations.
Focus on personalization: Use AI to tailor content and campaigns to individual preferences and behaviors, enhancing user experience and engagement.
Continuously monitor and refine AI algorithms: Regularly review the performance of AI tools, making adjustments as needed to improve accuracy and effectiveness.
Investment in quality data: Ensure that the data fed into AI systems is accurate, relevant, and comprehensive to maximize the quality of insights and outcomes.
Maintaining human oversight: Keep a human element in AI-driven marketing efforts to provide context, address nuanced issues, and ensure ethical considerations are met.

Don’ts:

Overlooking ethical implications: Avoid using AI in ways that could be seen as intrusive or manipulative. Be transparent about AI use and respect user consent and autonomy.
Relying solely on AI: While AI can automate and enhance many marketing tasks, human creativity, judgment, and empathy are still crucial for building genuine connections with audiences.
Neglecting testing and quality assurance: Thoroughly test AI tools and their outputs to identify and rectify any errors or biases before deploying them in live campaigns.
Underestimating the costs: Be mindful of the financial and resource investments required to implement and maintain AI systems effectively, from initial setup to ongoing updates.
Ignoring feedback: Continuously gather and analyze feedback from users and stakeholders to understand the impact of AI-driven marketing efforts and make necessary adjustments.

According to Ritesh Saraf, Gen AI assists marketers by automating content creation and generating personalized emails, social media posts, and ad copies that resonate with target audiences. It enhances customer segmentation, allowing for precise targeting of specific demographics with tailored messages. Additionally, Gen AI provides predictive analytics, forecasting trends, and customer behaviors, which aids in strategic planning and optimizing campaign outcomes. It also facilitates real-time customer interaction through chatbots and virtual assistants, improving customer service and engagement.

While commenting on the Do’s and Don’ts in using Gen AI for marketing, he stated the following:

Do’s:

Prioritise Data Privacy: Ensure compliance with data protection laws and standards to build and maintain consumer trust.
Start small: Implement AI in manageable projects to understand its capabilities and potential ROI before scaling up.
Combine AI with Human Oversight: Use human expertise to interpret AI outputs and make strategic decisions, ensuring a balanced approach.

Don’ts:

Avoid Over-Reliance: Do not rely solely on AI; maintain human involvement to oversee and guide AI-driven processes.
Ignore Ethical Considerations: Be mindful of ethical concerns, such as avoiding bias in AI algorithms and ensuring transparent data usage.
Neglect Quality Control: Regularly update and test AI models to maintain their accuracy and relevance.
Personalization: Gen AI creates personalized marketing messages by analyzing consumer data to tailor content to individual preferences, increasing engagement and conversion rates.

Saraf also mentioned some other factors:

Content Creation: AI tools generate content such as blog posts, social media updates, and ad copy, saving time and ensuring consistency.
Customer Insights: AI analyzes large datasets to provide actionable insights on customer behavior, helping marketers make informed decisions.
Predictive Analytics: AI predicts future consumer behavior and trends, allowing for proactive strategy adjustments.
Automating Tasks: Gen AI automates routine tasks like email marketing, social media posting, and customer segmentation, improving efficiency.
Ad Optimization: AI continuously tests and optimizes ad campaigns in real-time for better performance and ROI.

Yasin Hamidani listed the following Do’s and Don’ts while utilizing Gen AI in marketing:

Do’s:

Ensure Data Quality: Use accurate and comprehensive data to train AI models for reliable outcomes.
Prioritize Privacy: Adhere to data privacy regulations and be transparent with consumers about data usage.
Focus on Ethics: Address biases in AI algorithms to ensure fair and ethical marketing practices.
Combine AI with Human Insight: Use AI tools to complement human creativity and strategic thinking, not replace them.

Joydeep Sen emphasized the following Do’s and Don’ts while utilizing Gen AI in marketing:

Don’ts:

Over-Rely on Automation: Avoid excessive automation that can lead to impersonal and robotic customer interactions.
Ignore Data Security: Ensure robust security measures to protect consumer data from breaches and misuse.
Neglect Transparency: Don't obscure AI usage from consumers; maintain transparency to build trust.
Disregard Feedback: Continuously monitor and adjust AI strategies based on consumer feedback and evolving market trends.

By following these guidelines, marketers can effectively leverage Gen AI to enhance their strategies while maintaining ethical and consumer-centric practices.

Prashant Bhonsle added here, “AI will play a critical role in shaping future curricula by providing insights into emerging skill sets that will be vital in an AI-driven world. Educators must remain proactive in integrating AI-related competencies into their teaching frameworks, ensuring that students are equipped with the necessary knowledge and skills to thrive in a technology-centric environment. This includes fostering critical thinking, problem-solving, and adaptability – skills that AI cannot replicate. To prepare students for the future, educators should continuously evolve their curricula, incorporating interdisciplinary approaches that blend technology with traditional subjects, all while promoting ethical considerations surrounding AI.”

“Gen AI is revolutionizing the marketing landscape. Its ability to analyze vast datasets, generate creative content, and predict consumer behaviour offers unprecedented opportunities for marketers. By understanding consumer preferences and patterns, Gen AI can craft highly targeted and personalized ads, boosting engagement and conversion rates. However, challenges like data privacy and the potential for misinformation must be carefully addressed. While the cost of implementing Gen AI can be significant, the long-term benefits in terms of increased efficiency and ROI often outweigh the initial investment. It can automate repetitive tasks, freeing up marketers to focus on strategic initiatives. Moreover, Gen AI can enhance data analysis, providing deeper insights into consumer behaviour and market trends,” said Sanjay Rodrigues, Founder & CEO, Phenomenal AI.

Rodrigues further said, “Marketers can leverage Gen AI for content creation, customer segmentation, campaign optimization, and predictive analytics. However, it's crucial to use Gen AI as a tool to augment human creativity, not replace it. Maintaining a human touch in content and ensuring the ethical use of data are paramount. By collaborating with PR professionals who understand the nuances of the marketing industry, marketers can effectively harness the power of Gen AI to drive business growth and build strong brand identities. Generative AI has revolutionized how we approach targeted and personalized ads. By analyzing detailed customer data, it allows us to craft messages that resonate deeply with specific audience segments. I've seen firsthand how this improves engagement and conversion rates. For example, BCG points out how banks use Gen AI for personalized investment advice, and retailers leverage it to create bespoke recommendations, enhancing the overall shopping experience.

Shivam Arora, Associate Director - Marketing, Compunnel commented: "Generative AI has revolutionized how we approach targeted and personalized ads. By analyzing detailed customer data, it allows us to craft messages that resonate deeply with specific audience segments. I've seen firsthand how this improves engagement and conversion rates. For example, BCG points out how banks use Gen AI for personalized investment advice, and retailers leverage it to create bespoke recommendations, enhancing the overall shopping experience."

He further noted: "When it comes to cost, I've learned that using Gen AI in marketing involves initial setup expenses, ongoing maintenance, and potential training for staff. These costs can seem daunting at first. However, the benefits far outweigh the initial investment. We have noticed a significant enhancement in efficiency and a reduction in manual effort, which leads to an improved ROI. AI-driven tools streamline various aspects of marketing, from content creation to customer segmentation, resulting in more effective campaigns and better allocation of marketing resources. In my experience, the transformation Gen AI brings to marketing is well worth the investment."