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Report: About 50% of organizations earmark specific budgets for generative AI in marketing
A recent report showed that half of organizations surveyed have already set aside specific budgets for AI generative in marketing and 47% have secured teams for the implementation of generative AI in marketing.
The report found out that about 62% of marketers believe that generative AI will augment human creativity, enhancing unique human qualities such as intuition, emotion, and context understanding.
This came according to Capgemini Research Institute’s latest report ‘Generative AI and the evolving role of marketing: A CMO’s Playbook’, which surveyed 1,800 executives overseeing marketing strategies across diverse organizations worldwide with an annual revenue of over $1 billion. The organizations came from a range of sectors, including automotive, banking, consumer goods, insurance, retail, telecom, utilities, high-tech, manufacturing, life sciences, public sector and media. They are based in 14 countries across North America, Europe, and APAC.
In addition, 25 in-depth interviews were conducted with Chief Marketing Officers and marketing leaders with firsthand knowledge or awareness of their organizations generative AI initiatives. Charts comparing 2021 and 2023 data exclude respondents from B2B sectors, as they were not part of the 2021 survey. The covered sectors include automotive, banking, consumer goods, insurance, retail, telecom, and utilities.
Organizations already investing in generative AI for marketing dedicate 62% of their total marketing technology budget towards it, seeing this breakthrough technology as a catalyst for creativity and innovation in marketing.
The report found that 57% of marketers expect generative AI to act as a catalyst for unlocking new creative possibilities, particularly when collaborating between human and AI-driven innovation; 55% foresee this motivating teams to think beyond conventional boundaries. In the next two to three years, marketers already using generative AI expect it will be applied across data analysis (90%), search engine optimization (89%), customer services (89%), content creation (88%) and image and video generation (86%). As a result, marketing functions are actively establishing practices to use generative AI across marketing domains.
According to the research, organizations believe that this technology can help in building a unique brand image (67%), accurate analysis of customer and market trends (65%), reduction in marketing costs (66%), and increase efficiency in generating content and results (65%).
Gagandeep Gadri, Managing Director of frog, part of Capgemini Invent, said, “The future of marketing will undeniably be influenced by the widespread adoption of generative AI to deliver personalized content and communication; it’s value realization will need a fusion of strategic choices, human centered creativity and a good understanding of the art of the possible in a very fast-moving space. In many ways this feels like the Digital boom from 20 years ago, where the brands that succeeded were those that stayed true to their values but were brave and bold on how digital could deliver growth for their business. The same will apply for generative AI.”
As AI algorithms become increasingly sophisticated, marketers will continue to face complex ethical considerations around issues such as the responsible use of customer data, the transparency of AI-driven decision-making processes, and ensuring algorithms do not reinforce social inequalities.
The research indicates that only 30% of organizations have implemented clear guidelines for the use and oversight of AI systems and less than half consider attributes of trust, privacy, and responsibility when selecting AI systems for marketing activities. Less than half of organizations (42%) are implementing measures to protect themselves from challenges related to the use of generative AI in marketing, such as monitoring or searching for AI-derived versions of their work, including logos and artwork.
According to the report, the majority of organizations (71%) anticipate that certain marketing roles will be significantly or moderately impacted by generative AI including SEO specialists, digital marketing and creative directors, PR/communication specialists, copywriters, and customer insight specialists.
The majority (63%) of organizations recognize that the demand for generative AI skills in marketing significantly outstrips supply. To address this skills gap and harness the full potential of generative AI in marketing, organizations are implementing internal and external strategies. On average, 53% of companies are planning to provide generative AI training for their marketing teams in the next six months, with companies in the Netherlands, India, Australia, and the US most likely to implement this initiative. Sectors such as media, insurance, automotive, and life sciences also show higher-than-average commitment to generative AI training for their marketing teams.
The research showed that marketing has been transformed in recent years, with Chief Marketing Officers (CMOs) increasingly playing a central role in strategic decision-making processes. In business-to-consumer (B2C) sectors, 71% of C-suite respondents see marketing as a strategic partner in driving business growth and 72% of B2C organizations involve the CMO in critical decisions to drive business goals and objectives. CMOs have assumed greater direct responsibility for contribution to revenue growth (49%) and profit-related decisions (44%) over the past two years, increasing by 25 and 19 percentage points from 2021 respectively.
Almost 60% of organizations are integrating generative AI into their marketing efforts, out of which 37% are actively implementing it across various initiatives, while an additional 21% are in the experimental phase. In order to succeed, organizations are adopting diverse AI strategies tailored to their specific marketing needs and available resources. Nearly a quarter of organizations rely solely on external applications and platforms for generative AI in marketing, however, half of them are in the process of either developing or using in-house applications alongside external tools.
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