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Study: Gen AI takes 62% of total marketing technology budgets

Study: Gen AI takes 62% of total marketing technology budgets

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Artificial Intelligence (AI) has massively changed the way we work this year with 47% of organisations allocating teams for the implementation of generative AI (Gen AI) in marketing campaigns. In fact, organisations are already investing in generative AI for marketing and have dedicated 62% of their total marketing technology budget towards it.

Sectors such as media, insurance, automotive, and life sciences also show higher-than-average commitment to generative AI training for their marketing teams.

Don't miss: Is Gen AI the solution to SG firms making marketing dollar cuts?

These were the results of Capgemini Research Institute’s latest report titled ‘Gen AI and the evolving role of marketing: A CMO's Playbook’, which also showed that 57% of marketers expect Gen AI to unlock a myriad of creative opportunities. These include motivating teams to think beyond conventional boundaries with 55% of respondents saying that they do so. 

Interestingly, 62% of marketers also believe that Gen AI will augment human creativity and enhance human qualities such as intuition, emotion, and context understanding. The report includes surveys from 1,800 marketing executives across sectors such as automotive, banking, consumer goods and media.

Of marketers already using Gen AI, 90% expect the technology to be applied to data analytics in the next few years while 89% see its increased application across search engine optimisation and customer services.

How can Gen AI help marketers?

Organisations have stated that they believe Gen AI can help to build a unique brand image and reduce marketing costs with 67% and 66% saying so respectively. Additionally, 65% believe that Gen AI is used for the accurate analysis of customer and market trends while also increasing the efficiency of generating content and results.

However, every rose has its thorn and for Gen AI, it’s the ethical issues that come with using it in campaigns. These concerns include the responsible use of customer data, the transparency of AI-driven decision-making processes, and ensuring algorithms do not reinforce social inequalities, according to the report.

Currently, only 30% of organisations have implemented clear guidelines for the use and oversight of AI systems with less than 50% considering the attributes of trust, privacy, and responsibility when selecting AI systems for marketing activities.

More alarmingly, only 42% of organisations are implementing measures to protect themselves from challenges related to the use of Gen AI in marketing such as monitoring or searching for AI-derived versions of their work, including logos and artwork.

Gen AI is also expected to impact marketing roles as 71% of organisations anticipate roles such as SEO specialists, digital marketing and creative directors along with PR specialists to be significantly or moderately impacted.

As 63% of organisations recognise that the demand for Gen AI in marketing outstrips supply, they are turning to internal and external strategies to address this gap. On average, 53% of companies are planning to provide generative AI training for their marketing teams in the next six months.

Related articles: 
How Pizza Hut transformed itself in 2023 using AI
Interview: IBM marketing lead Dawn Liu on how to ethically work alongside gen AI
73% of consumers trust content by generative AI: Here's why they shouldn't

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