Ten Ways AI Is Transforming Marketing

Ten Ways AI Is Transforming Marketing

Until now, companies have used a combination of human insights and traditional analytics to engage with customers. But the emergence of artificial intelligence and more sophisticated data interpretation has ushered in a new era of interaction between companies and customers.

Instead of simply responding to expressed needs and wants, companies proactively anticipate them and thus achieve an unprecedented level of insight. It will revolutionize the way customers interact and reshape the industry.

Here are ten predictions about how different applications of AI, including creative AI, will transform marketing and examples of where these changes are already taking place.


1. Predictive analytics will predict customer desires
 
Forget about empty results. AI-powered predictive analytics will predict desires before they arise. AI can create different customer profiles that predict not only purchasing behavior but also emerging needs. It captures biometric signals such as eye movements or web page scrolling speed to decipher the user's unspoken preferences and emotional reactions.
 
Think streaming giant Netflix. It already uses advanced machine learning algorithms to predict audience preferences. Beyond what shows a user has watched, look for more granular clues, such as when they paused a show, which episodes they skipped, and how long they thought about a particular title.

Using this complex data, Netflix can not only predict what a viewer might watch, but also predict their new content preferences. It can then adapt its original programming.

2. AI-powered content will create the next generation of storytelling
 
The increasing role of artificial intelligence in content creation will focus on the answer. Intel Live can change content descriptions in real-time to adapt to user interactions. This content is created not only based on overt actions, but also on users' conscious preferences and unspoken feelings.

In this sense, OpenAI stands out as a pioneer. Its advanced language models are beginning to lay the foundation for content that dynamically adapts to user input, detects a user's underlying emotions, and responds accordingly.

For example, these models can dynamically create narratives, shape characters, or suggest plot twists when the narrative matches the user's unstated preferences. Such innovations promise a future in which content, whether literature, games or virtual experiences, can build a strong emotional connection between the producer and the end consumer.

3. Programmatic ads will be more accurate and predictive

The future of programmatic advertising promises not only accuracy, but also contextual relevance. Ads are tailored to the immediate situational context, beyond the obvious clicks and pageview analytics. Instead, AI interprets basic behaviors (such as time spent on an ad or subtle navigation patterns) to understand and align with your audience's deeper, unspoken interests.

Google Ads is at the forefront of this transformation. In addition to analyzing obvious signals like clicks, algorithms look at deeper patterns, such as the time a user spends on ads or digital browsing history. This paves the way for ads that match users' current and future interests


4. Hyper-personalization is implemented throughout the entire digital journey
 
With AI, personalization will create completely unique digital experiences that take into account the complexities and dilemmas each individual faces. In addition to analyzing click-through rates and purchase history, AI will try to understand the emotional landscape of users. It does this by relying on precise data such as interaction speed, mouse movements, or even biometric interactions, if available.

Spotify is a great example of this trend. Its algorithms can interpret data such as how long songs have been skipped and even which songs are being played from today. This allows the user to decide whether they are looking for energetic melodies for training or gentle sounds for relaxation.

Additionally, by linking listening habits to life events, such as adding lullabies that might signal a new baby in the family, Spotify can suggest relevant content beyond music. With a tailored digital journey, the Spotify experience can make you feel like a trusted friend who knows your tastes and life stages.
 
5. Look through the user's lens to move from words to reality
 
Advanced visual recognition is designed to deliver insightful and intuitive product recommendations. In addition to product and brand recognition, AI interprets basic visual cues from user-generated content. For example, the background of a photo, the color of clothing, and even the exact mood expressed in a photo can convey unexpressed preferences or feelings. All of this will flow into your marketing strategy.

Pinterest offers interesting insights into this trend: the platform's ability to interpret visual content uploaded by users has produced highly intuitive recommendations on products and styles. For example, a user who pines for serene landscapes might appreciate suggestions for mindfulness exercises or a relaxing interior design that suits his or her aesthetic inclinations.


6. Email marketing should start conversations, not campaigns
 
AI can transform email marketing from broadcast-like campaigns to conversations that feel like conversations. In addition to the open rate, the AI ​​will use sentiment analysis of user responses. Even if users don't actively engage with email (no clicks, no direct replies), their passive interactions can inform AI.

HubSpot is a great example of the transformative power of AI to turn simple campaigns into meaningful conversations. The company uses artificial intelligence to evaluate negative interactions such as email opening times or repeat visits. This allows decoding of interests (e.g. thoughts).


7. Chatbots will pave the way for meaningful engagement everywhere
 
Chatbot applications will go beyond mere 24/7 availability, as AI-powered chatbots will increasingly capture and understand the emotions behind user queries by recognizing unspoken emotions such as frustration or excitement. By responding with an empathetic touch, chatbots develop a deeper, more human connection without claiming to understand emotions.
 
For example, the Intercom system uses artificial intelligence to transform chatbot interactions from transactional exchanges to meaningful conversations. The company's advanced AI-based chatbots not only answer users' questions but also measure the emotional nuances behind them.

By referencing previous interactions, the chat software also provides users with a sense of continuity, similar to a conversation with a familiar contact. You can also address unspoken needs, such as providing a tutorial when a user is confused about a feature.

 
8. Language will lead to a new way of digital interaction
 
As AI becomes adept at speech recognition, it will also use emotional nuances in voice input. Companies can then create responses or offers that reflect the user's emotional state at that moment, whether it's skepticism, excitement, or skepticism.

Take Alexa from Amazon. Its evolving artificial intelligence is constantly improving its understanding of the user's emotional state through subtle differences in tone, pitch, and tempo. Regardless of whether Alexa detects a hint of hesitation or excitement in a user's voice, it responds accordingly.

For example, someone in a hurry might get a more accurate answer, while a relaxed user might get a more accurate answer. This represents the growing potential of voice-based AI to reshape digital interactions.
 
9. Price dynamics and market dynamics will converge
 
Dynamic pricing can become a living system that reflects market nuances in real time. AI doesn't just track sales and inventory. Using news, social media sentiment and other subtle indicators, it will understand the “mood” of the market and adjust prices accordingly.

Uber's dynamic pricing model offers a glimpse into the future. Instead of simply adjusting prices based on supply and demand, the company's AI system is designed to detect more subtle environmental signals.

If there is a spike in social media posts around a big event, AI can predict the spike in demand. It can identify user dilemmas when it comes to price increases and make improvements to maintain customer satisfaction, thus maintaining a balance between business profitability and customer service. Although this approach is controversial, it shows the potential of AI to adapt to the ever-changing pace of the market.
 
10. Sales forecasting combines instinct and intuition
 
As AI predicts market trends, the human touch will add reality to these predictions. The harmonious combination of AI insights and human intuition promises a future with balanced and robust sales strategies.
 

Salesforce demonstrates this combination of human instincts and AI-based insights in sales forecasting. Einstein's AI platform not only analyzes large amounts of sales data, but can also detect hidden clues such as shoppers' doubts.

While its AI systems provide predictive insights, final decisions often depend on human sales strategists using their insights and expertise. This way, Salesforce ensures that its sales strategies are data-driven and linked to real customer interests.

From looking beyond the obvious to listening to what goes unsaid, the next marketing challenge is to stop talking and start listening more: the whispers of the market and the silent desires of customers. As we prepare to enter this new world, we should be guided not by profit, but by transparency and moral responsibility. Privacy-conscious companies need to pay close attention. Transparent information management practices, regulatory compliance and trust will be key. Those who master it will not only navigate it, they will define the future and set the gold standard in the world of AI-driven sales and marketing.

A version of this article first appeared in the European Business Review .

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