AI and brands—10 realities marketers can't ignore

It’s almost a cliché to say that marketing is undergoing a seismic shift, but it’s true. As we move toward an AI-dominated future, our strategies must evolve rapidly. The practices that served us well for decades are being upended by AI, machine learning and unprecedented levels of consumer data and connectivity. The upside of AI extends far beyond “better, faster, cheaper” content, as it also forces us to address consumer basics we should have tackled from day one of the internet age. Here are 10 realities reshaping how we connect with consumers and build brands in the age of AI. Ignore them at your peril: The rise of the answer economy Brands that answer queries at scale and with sincerity will win. The days of controlled messaging are giving way to a more dynamic, conversational approach. Consumers are hungry for information, and AI is making it easier than ever for them to get it. Your brand's ability to provide thoughtful, nuanced responses will be critical. This isn't just about FAQs; it's about creating a comprehensive knowledge base that can engage in meaningful dialogue with consumers. Brands that make consumers feel heard, even anticipating questions before they ask, will stand out in an increasingly automated landscape. Your brand truth is blended (like a smoothie) Unlike traditional search, Generative AI answer engines blend a brand's story into a singular "Prompted Moment of Truth" with the potential to significantly impact consumer decisions. Say goodbye to their era of 10 blue links per search. Brand builders must now prime and manage “smoothie” ingredients in a tightened shopper journey. Brand builders will need to zero in on authentic, credentialed and consistent brand elements to influence AI-driven consumer choices effectively. SEO-style gaming or manipulation won't work in this context. AI marketing blog How brands are using ChatGPT, DALL-E 2 and other tools Read more here Listening still reigns supreme Listening is not just about hearing what consumers say—it's about understanding the signals they send through their questions, behaviors and choices. Marketers need to become adept at reading these signals and responding in real time. A “click to buy” pop-up ad after a serious FAQ question is not listening. Deep listening feeds invaluable insights into R&D, ensuring that innovation is rapid and aligned with consumer needs and expectations. R&D is the new marketing The depth and precision of your product information matter more than ever, and AI bots are hungry to translate this into rewarding and revealing answers for users. In this context, R&D is now the most strategic marketing input. From product superiority to carbon science, R&D holds the key to narratives and answers that resonate with both consumers and AI algorithms. Breaking down silos between R&D and marketing ensures the full depth of your product knowledge is accessible and communicable. Integrating consumer signals from real-time listening into R&D makes innovation agile and responsive, aligning it closely with consumer needs and driving brand growth. Your “boring” brand website matters—finally! As AI aggregates information from across the web, your owned media becomes more crucial than ever. As I’ve learned across thousands of audits, owned media is the No. 1 “ingredient” — or “algorithmic anchor” — of AI answers across all engines from Perplexity and Grok/X to Gemini and ChatGPT. Your website isn't just for humans anymore—it's also educating the bots that will shape consumer perceptions of your brand. Invest in creating robust, informative content that serves both audiences. Bye-bye, greenwashing In a few weeks, the vast majority of Olympic sponsors will amplify their green narratives at an event deemed “the most sustainable and circular in history.” However, don't underestimate the power of AI to empower consumers and other stakeholders to scrutinize your environmental impact in seconds. From one-click carbon scoring to determining the lifetime value of plastic consumption, generative AI is unveiling a new level of transparency. This goes beyond greenwashing—brands will need genuine, measurable sustainability initiatives to succeed. Hello AI-powered retailers Retailers are setting up their own AI departments, extending beyond inventory management. Expect more sophisticated product vetting, claims testing and private label development. Retailers will know before you walk in the door if your service, consumer ratings, answers on your brand website, environmental footprint and standing with the Better Business Bureau measure up. Be prepared for more rigorous scrutiny of new products. Brands will need to up their game to stay competitive on store shelves. More power to the e-commerce consumer AI will completely reshape e-commerce, giving consumers even more power, convenience, and transparency. This is most evident in Amazon's investment in Anthropic. We can expect AI-powered personal shopping assistants, infinitely more revealing ratings & review data, hyper-personalized product recommendations, and seamless voice-activated shopping experiences. Brands must prepare for a future where AI mediates many consumer purchasing decisions. Check out the latest Ad Age events and award programs Think (and fear) small AI is a great equalizer. Don't underestimate the nimbleness of small brands. Many are “AI by design” and instinctively focused on serving consumers. Without the luxury of big ad budgets, they're often more innovative in their use of AI and more responsive to consumer needs. Similarly, your interns may wield outsized influence due to their native understanding of digital platforms and an insatiable curiosity for trying new things. Large brands will need to adopt a startup mentality to keep pace. Leadership is everything As we navigate this brave new world, leadership will be more important than ever. Marketing leaders will face complex judgment calls, balancing the pursuit of efficiency with ethical considerations. They must navigate the fine line between personalization and privacy invasion, leveraging data and respecting consumer autonomy and even between innovation and regulation. Bots won’t replace this. The final word is that AI is seamless. It doesn’t recognize boundaries. Yet, many brand organizations still operate in silos. Brand managers must learn to see the world as AI does and develop organizational structures and cultures that allow teams to think and work like AI. This is a new, fundamental responsibility for brand leaders. They must be comfortable with ambiguity, willing to experiment, and able to balance the efficiencies of AI with the irreplaceable value of human creativity and empathy. Ad Age Agency Report 2024 Revenue and analysis for agency companies Click here

AI and brands—10 realities marketers can't ignore

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