AI is disrupting marketing forever. Here's how

Artificial intelligence is changing the way companies operate around the world.

So it is no secret that it has a monstrous impact on marketing as well, but many people do not realize how profoundly and permanently it is changing the game and how everything is changing at the speed of light.

In thisimportant post we will discuss the ways in which AI is transforming marketing as we know it. It will be an in-depth analysis based on our direct research work in this area. Deep Marketing is in fact among the very few truly cutting-edge agencies in Italy in the AI field given the expertise and passion of our founder, Francesco Galvani, who has been working on neural networks since 2002.

And no, there will be no shortage of critical analysis of risks and how to avoid them.

What is artificial intelligence and how does it work in marketing?

Let's start with the fundamentals.

Artificial intelligence, or Artificial Intelligence, is a type of software designed to simulate human intelligence. The term "Intelligence" actually has an origin referring to the discovery of patterns within data-think of the acronym CIA, Central Intelligence Agency-but over time this semantics has gradually shifted to a synonym for human intelligence.

An artificial intelligence platform can then be used for a variety of tasks to replace or support humans, including, of course, those in marketing. With regard to this area, AI can be exploited mainly for:

• Creating targeted ads;
• Customize existing content;
• Monitor customer behavior;
• Operate machine translations;
• Generate content, such as text and images;

By using AI, companies can better understand their customers and what they are looking for. As a result, they can create marketing campaigns that are more effective and more likely to result in conversions. In addition, AI can help companies save time and money by automating tasks that would otherwise be done manually.

As its continues to grow in marketing, it is likely that more and more companies will begin to reap the benefits it has to offer. Definitely you should be among them. Therefore, read on.

How can AI be used to personalize the customer experience and improve marketing results?

In today's ultra-competitive markets, companies must find new ways to stand out from the background noise. One way to do this is to personalize the customer experience. AI in this regard can first help them truly understand their potential customers and what they want. ù

Some specific examples along these lines:

Customized product recommendations

One way AI can personalize the consumer experience is by providing personalized product recommendations. This can be done by analyzing a customer's purchase history, browsing behavior, and other data to determine which products they might be interested in. AI can also take into account a customer's location, weather and current events to provide even more personalized recommendations.

Dynamic pricing

Another way artificial intelligence can personalize the consumer experience is dynamic pricing. This is a pricing creation strategy that involves using algorithms to adjust the price to the customer in real time based on demand, competition and other factors. By using dynamic pricing, companies can ensure that customers always get the best possible price for their products or services.

In essence, the modern, efficient version of the law of supply and demand.

Advertising and personalized content

Artificial intelligence can also be used to deliver custom ads and content to consumers. This can be done by analyzing a customer's browsing history and demographic information to determine which ads and content they would be most interested in. AI-based personalization can help companies improve conversion rates and increase customer engagement.

In this, it is very similar to dynamic pricing and product suggestion, but with an added difficulty due to semantic understanding of text and content.

Chatbot

Chatbots are another area where artificial intelligence can personalize the consumer experience. Chatbots are computer programs that simulate human conversation and can be used to provide customer support, answer questions and give advice. Many chatbots use natural language processing (NLP) to understand human speech, which allows them to provide more accurate and useful answers than with other systems, which are typically simple decision trees.

Predictive Analysis

Predictive analytics is a type of AI that can be used to predict future events or trends based on past data. This information can be used to suggest products and services to customers well before they feel the need. It can also support budgeting, marketing mix and shrewd investment in digital campaigns. Predictive analytics can also be used to prevent problems beforethey occur, such as fraudulent e-commerce activity or customer-critical systems failures.

Are we talking about services related to OpenAI and automated content creation?

OpenAI is a nonprofit research company that promotes "friendly" artificial intelligence. One way it does this is by offering services and tools that help companies automate content creation. For example, GPT3 of OpenAI can be used to generate articles, blog posts and even product descriptions. It can be a great tool for companies to save time and money in content creation.

Tons of services interface with OpenAI to provide a platform to assist marketing departments in creating content for social, blogs and ads.

But do they work well?

Well, they are certainly compelling enough to partially replace junior editors and copywriters, but not enough to make you believe that a human wrote those materials. Their goal is not to create content indistinguishable from human content, but rather to create lots of text and images quickly and cheaply. So don't expect too much yet, but the technology is improving rapidly.

It is still necessary to employ a professional content manager to review, enrich and reedit these pieces of content, instruct the systems and give them a "human feel." Artificial intelligence services are therefore good-but not sufficient-tools to help you be more efficient. The real problem is that we are moving toward a future in which there will be more and more automation for most low and mid-level professions, while there will be more and more productivity tools for experienced managers and editors. A scenario of creative destruction like we have seen before in the history of capitalism.

The key will be to keep up with the times and learn how to use these new tools to our advantage. So that we are not crushed by innovation.

FRANCESCO GALVANI, CEO OF DEEP MARKETING

We at Deep Marketing have an entire research and development department dedicated only to these tools, to give excellent service to our clients and to be always close to the frontier of innovation.

How is OpenAI's GPT3 built?

The architecture of GPT3 is a transformer-based neural network with as many as 175 billion parameters.

GPT3 uses a technique called attention, in which different parts of the textual input are weighted differently in terms of their importance for predicting the output. This allows it to focus on relevant information and ignore irrelevant noise.

As for training, GPT3 was first pre-trained on a large amount of text from the Internet, using linguistic modeling tasks to predict the next word in a sequence. It was then fine-tuned on curated datasets for specific tasks, such as translation or answering questions.

Overall, GPT-3's huge number of parameters and use of attention mechanisms enable it to achieve impressive results in a variety of natural language processing tasks, with minimal tuning required for each task.

Some philosophers have commented on OpenAI and its risks. Here are their opinions: https://dailynous.com/2020/07/30/philosophers-gpt-3/

Are there potential risks associated with using AI in marketing campaigns?

Although AI can help target ads more effectively and personalize the customer experience and make managers more efficient, there are obviously potential risks associated with its use.

A legitimate business and ethical fear is that AI-powered marketing campaigns may inadvertently discriminate against certain groups of people. For example, if a campaign is aimed at young adults, it might exclude older individuals who might instead be interested in the product. But things can be far worse: in fact, we have evidence that much AI has embraced racial stereotypes found on the Web and against, for example, people of color. Quite simply, AI absorbs what it finds.

Another concern is that AI-based marketing may become so effective that it begins to replace human interaction, as seen above. This could lead to customers feeling treated as data points rather than as individuals.

Finally, there is the potential for platforms to become so ubiquitous and intrusive that they appear to be a form of surveillance. As AI is integrated into marketing campaigns, it will be important to monitor these potential risks and take steps to address them.

Even now it is not uncommon to talk about a product and shortly thereafter see it appear in the Facebook feed...

How will artificial intelligence continue to shape the future and what should companies do to prepare?

Few technological advances have generated as much hype and fear as artificial intelligence.

As we have seen, as it continues to evolve, companies are increasingly turning to it to automate repetitive tasks, personalize customer experiences, and gain insights into customer behavior. However, many marketers still lack a clear understanding of how AI can be used to achieve real business results.

As AI continues to shape the future of marketing, like it or not, companies must take a strategic approach to adopting this technology. By clearly defining their goals and investing in the right tools and talent, companies can position themselves to take advantage of the many opportunities offered by AI.

So back to the usual point: talent and professionalism. So as not to be crushed by an inevitable wave.

In Brief

Artificial intelligence is not a passing trend, but a technology that is rapidly maturing and evolving. That it is here to stay and disrupt the world.

It has the potential to radically change the way marketing is done, but it also carries risks. As with all new technologies, it is important to use AI in communication and customer interactions with awareness and caution.

At Deep Marketing, we are at the forefront of this field and can help you harness its power for your business while mitigating risk. Contact us today to learn more about how AI can help you grow.

And to realize your potential.