How AI-focused CMOs are struggling to advance uses of the technology

Chief marketing officers may be seeing initial benefits brought by generative AI, but scaling these boons to other parts of their businesses remains a difficulty, according to a survey conducted by Boston Consulting Group in April and published today. Early success is mostly a result of using AI applications for what the survey’s authors deem “low-hanging fruit.” For example, half of the 200-plus CMOs who participated in the survey have this year scaled their deployment of generative AI for content creation, in particular draft copy and images that are then refined by humans before being used in social media ads. Over 30% this year have also scaled their AI-powered efforts toward identifying social media trends thanks to the technology’s ability to provide immediate, specific feedback. Check out the latest Ad Age events and award programs Overall, roughly 80% of respondents said that generative AI is already improving automation, speed and productivity. Over half of respondents project at least 5% topline growth in their generative AI-related business applications, and three out of five plan to invest at least $10 million annually in AI initiatives over the next three years. Also: Agencies and brands struggle to define value in partnerships Although the percentage of CMOs that have rejected AI has increased, from 12% last year to 18% this year, the percentage expressing worry over the technology has dropped from 46% to 35% over the same period. This year’s numbers also reflect slightly higher optimism, confidence and curiosity in generative AI. However, “current shortcomings in the core operating models” are impeding brands’ ability to progress around AI, the survey’s authors wrote. CMOs appear unsure as to how they can expand upon efforts that may generate key returns for their businesses. Take personalization, which, according to the survey’s authors, provides “the greatest upside from the adoption of GenAI.” Nearly 70% of CMOs piloted AI-powered personalization last year, more than any other application; but this year, the percentage of those scaling these efforts is just over 20%. The result is that many brands have fallen stuck expanding the easy applications that do not necessarily generate returns. While generative AI can quickly produce content for channels like social media, quantity does not imply quality, and consumers want quality. And an increased volume of content will only make standing out harder for brands, per the survey’s authors. CMOs know that mostly using generative AI for content creation is less than ideal. Over 70% of respondents said they were concerned about the technology’s impact on creativity and brand voice. This latter domain has particularly rankled CMOs, who are telling their teams to focus on creativity and emotional connection as they search for tools that are better at emulating their voice. The solution, according to the survey’s authors, is that brands need to supplement generative AI with predictive AI in order to determine future needs and wants of their consumers. (Predictive AI, as its name suggests, is concerned with predicting future outcomes, whereas generative AI is concerned with producing media.) This process requires a “nonstop flow of data” into machine-learning models, acquired through constant testing and learning. The method de rigueur, which consists of running campaigns and periodic promotions, simply is not enough, the authors wrote. More news: How ad copy testing strategies are evolving Personalization is not the only high-yield application that could be awaiting brands should they shift their focus. Customer insight generation, segmentation and predictive analysis are also recommended by the survey’s authors, despite being reflected as only middle-tier priorities by respondents, based on budget investment. In short, “to get the most from GenAI,” CMOs should shift their applications from automation to innovation, the survey authors said. 40 under 40 entries are open The final deadline for nominations is Aug. 2 Enter here

How AI-focused CMOs are struggling to advance uses of the technology

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