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AI in digital marketing: Future of AI in the marketing industry?


As they say, ‘necessity is the mother of invention’, and we have witnessed prompt and prodigious advances in the digital marketing industry. Likewise, the hype for artificial intelligence seems to get cosmic every year. But do you know the impact of AI on shaping the future of digital marketing? According to a survey conducted by Fortune Business Insights, the annual AI in business and marketing growth is expected to be 32.2% between the years 2020-2027.

Digital Marketing is the perfect platform for artificial intelligence, given its ability to generate enormous data and its establishment in working with them. AI consistently continues to upswing, and it will gain an inevitable role in the future of the advertising world. 

What is Artificial Intelligence (AI) marketing?

Have you ever used Google Assistant, Siri, or even Bixby in your life? Maybe you would have instructed Google to set your alarm for six the next morning or might have asked Siri about the latest news on NASA. And as your digital personal assistants, they will respond with relevant information by either going through your device or searching it on the internet. This is one of the simple examples of Artificial Intelligence.

In simple words, Artificial Intelligence or Machine intelligence is the process of building and managing a system to make decisions autonomously and carry out various functions on behalf of a human being. 

How does AI help marketing?

AI helps marketing in 3 ways by enhancing productivity, boosts efficiency and increase ROI

Artificial Intelligence has been covering an enormous part of our daily life activities. Similarly, businesses are taking steady yet significant steps in adapting AI in digital marketing. It has already modified the way brands communicate with customers and how campaigns are made and managed, from assisting businesses in developing effective strategies to influencing the customers’ life through chatbots. Here’s how Artificial intelligence is impacting the marketing industry.

  • Enhance productivity

You can implement the AI algorithm to automate numerous, monotonous activities. It will increase your productivity and save your precious time and money.

  • Boost efficiency

Offering AI-powered support tools to the staff will allow them to boost the quality and quantity of their work. Artificial Intelligence helps the staff handle repetitive tasks like identifying and separating leads from campaigns, answering the FAQs from customers, data input, and more.

  • Increase ROI

As many activities are automated with Artificial intelligence, it will lower the costs and increase profitability. The role of AI in the organization will facilitate a better decision-making process and aid in creating higher-converting content.

What will the impact of AI be on the marketing industry?

Recent analyses have even predicted that It will revolutionize the way digital marketing is being used in the future, thereby optimizing the creation of marketing campaigns, streamlining them, and preventing human errors.

The scope of advanced AI in marketing companies is massive due to its ability in various aspects, from producing targeting interactive intelligence advertising to automating time-consuming tasks. Even though artificial intelligence is a powerful tool in the digital marketing industry and has ultimately aided in the overall process, it still has to reach a long way in terms of convenience and efficiency.

How will AI shape the future of marketing?

The development of AI is still underway in the marketing field, and there will be a positive impact. Although it can handle any complex task, what is the future of AI? Increased applications of AI across marketing don’t reduce the employment chances of individuals. Instead, it will enhance the job description with smarter data that needs smarter employees. And it ultimately improves the customer experience and boosts the brand’s profitability and productivity.

Considering such benefits, various business verticals, from finance to technology and even retail, have begun to experience powerful artificial intelligence to predict and forecast future trends with the relevant data and identify potential threats. Despite their impressive features, AI technologies are still in the beginning stages. With this tremendous potential, AI is expected to contribute $15.7 trillion to the global economy by 2030, based on PwC’s Global Artificial Intelligence Study.

11 ways AI will change the future of marketing

As we live in an age where industries constantly evolve, artificial Intelligence is still an unclear tech word for many. The rise of AI in digital marketing is upon us. Smartwatches to self-driving cars can stimulate human experience to new heights. 

Future of AI in business & marketing

  • Content creation

The secret of successful marketing doesn’t rely only on finding and reaching appropriate customers but also reaching them with the right message at the right time. It can be accomplished by undergoing effective marketing research to understand the customer’s standpoint, including their needs, age, group, education, and more.  

This is where Artificial Intelligence becomes important in delivering content like landing pages and consumer blogs with pinpoint precision that will likely capture the customer’s attention and enhance customer journey. Moreover, brands can promote their content marketing strategies and better personalize marketing messages.

  • Predictive analytics

Predictive analytics can be applied to the data organized from social media or web matric to build a better product or service. With growing technological innovations, artificial intelligence can successfully predict the changes in digital marketing to improve the advertising campaign. 

AI can process millions of social media trends and posts and find similarities in the used texts, images, and even hashtags. Even though it still needs some human effort to interpret the finding, the application is subtly fascinating. This will allow the marketers to adapt whenever there is a change in market behaviors, improving the brand’s performance as more data emerges.

  • Better advertisements

According to the Garter Analysis, 50% of the analytical decisions will be made over simple verbal interaction within the next five years. Unlike the traditional marketing approaches, AI-induced marketing will enable businesses to adapt to the changes in marketing and classified approaches. 

AI in digital marketing holds a colossal role in the growth of start-ups, allowing them to explore various opportunities. AI aids them in working on different thought processes, innovating new solutions, and delivering better marketing advertisements.

  • Product recommendations

Product recommendations are one of the most common uses of AI in digital marketing. Even though it was initially used in music content sites, it has extended its presence in most industries, given its exemplary growth advantages. Here, the AI combines humans’ tech intelligence and creativity to engage with customers at a personalized level to make them feel compelled to engage with your brand.

Nevertheless, the AI in digital marketing knows about users’ preferences and pushes the product in front of their eyes that will exactly fit the preferences. This will not only help you craft better target content but also greatly cut down the bounce rate and increase the chances of conversions.

  • Better customer service

Many people are on social media, which pushes businesses to take place online with social media marketing. In digital marketing, one of the important aspects of attaining success is understanding the customers’ behavior and needs precisely. Artificial intelligence plays a significant role in helping marketers take customer service to the next level by leveraging more data insights. It also allows entrepreneurs to offer a more personalized experience to their customers.

AI can quickly identify and adapt to the information pattern of the customers, including their past shopping history, preferences, credit scores, and more. With actionable sales intelligence, AI stimulates customer engagement in a real and impactful way. When you have communication with such prospective buyers, the entire sales process and customer service will be as smooth as possible.

  • Augmented and Virtual Reality marketing

Augmented and Virtual Reality or AR/VR modes of marketing have been in use for a while, but still, they are somewhat considered to be a novelty among consumers. However, in the future, these innovative technologies will not only rule the entertainment world but also be used in the practical application of the marketing world. Nowadays, we can see more companies embracing AR and VR, realizing how impactful they can be in terms of their marketing strategy. 

For example, certain furniture shops allow their customers to fix their choice of furniture in their own homes in the virtual world before buying it in the real world. Similarly, several fashion brands and opticals adapted to AR/VR by creating apps for customers, enabling them to try different options in the comfort of their homes.

  • Voice search using NLP

The world is moving to mobile, and AI-powered virtual assistants are growing proportionally. According to a recent survey, around 60% of customers prefer to use voice search to find information about a business, while half implement voice-based search to identify the local business to fulfill their needs.

Since people want to switch over to a hands-free method of data input and are comfortable using voice commands, AI technology has been designed to understand human speech using machine learning algorithms. For instance, Google’s algorithms are proven to recognize human speech with an accuracy rate of 95%, similar to the same intellectual level as another human being.

  • Automated decision making

There are many challenges when it comes to making decisions in marketing. To make the best one, you need to discover and understand the customers’ specific needs, desires, and behavior. It is also crucial to alter the desire or needs of the consumers, which will guide you to make the best marketing decisions in both the short and long term.

With Artificial Modelling and simulation techniques in digital marketing, it will be possible in the future to enable reliable insights into your customer personas. This will ultimately help predict an individual’s behavior and support decisions through up-to-date and real-time data gathering, analysis of the latest trends, and forecasting.

  • Email optimization

AI helps businesses to personalize their email marketing efforts with better content, maximizing their marketing success that is designed to based on user preferences. It will allow the brand to deliver relevant emails to customers’ inboxes triggered by their actions and behavior. 

They can use various tools to analyze and optimize the campaigns to reach the right customer at the right time with the relevant messages. It can also allow you to design an email with subject lines, product recommendations, designs, and images to get the best results.

  • Bidding on programmatic media buys

Online advertising has evolved from a simple transition to a complicated one due to today’s huge ad network. The combination of Artificial Intelligence custom bidding and programmatic buying will unlock the true potential in digital marketing. 

Unlike non-AI algorithms, AI can readily learn and adapt to the actions based on the new marketing patterns, which are highly suitable for the real-time environment of programmatic advertising. When they are combined, it will be easy to drive efficiency through data analysis, campaign, and AI-based custom bidding algorithms.

  • Dynamic pricing model

The dynamic Pricing Model benefits customers as well as businesses when the demand for a product or service is down. AI’s role in pricing strategy involves the determination of a product price based on the demand and supply. 

A chatbot in an app or website will monitor the predictive analysis through cookies, history, searches, and other activities to deliver you real-time pricing. For instance, when it comes to marketing unoccupied hotel rooms, dynamic pricing can offer competitive pricing compared to other brands to attract customers.

Challenges in adopting AI for marketing

AI is becoming more accessible to the advertising industry today, enabling it to grow the brand and meet the expectations of target audiences. However, it is also irrefutable that AI has to face some challenges to keep the brands in the high ranks. Some of them are listed below,

  • Access to high-quality data

AI may not have the capacity to know to take the actions automatically to achieve overall marketing goals. It will take time and high-quality data to learn the goals, customer preferences, and trends. If the AI marketing tools are trained with high-quality, timely, and accurate data, they tend to make less optimal decisions and decrease the value of the technique.

  • Balancing accuracy

Just because they are advanced technology, the predictions from AI don’t need to be as accurate as possible. It means that a wrong prediction can be extremely expensive in some cases. Likewise, precise forecasts can create more value in some conditions than in others. But this issue is often overlooked, leading to expensive mistakes which can be avoided by selecting the right approach.

  • Detecting problems for business

As mentioned above, AI could be a distinctive marketing tool, but it cannot identify and provide solutions for every problem. If you are integrating AI into your business without any insights and objectives, it will lead to failure. Hence, be sure to add the technology with clear objectives to achieve success with relevant metrics.

  • Complexity

Time and complexity have a prominent role in marketing using AI technology. Brands need a lot of time to build and sustain machine learning solutions. If the data is scattered, you need to combine it by successfully extracting, clearing, and reformatting the data, eventually removing the complexities.

  • Model deployment and operations

AI is still a new tool in digital marketing. The initial model deployment and operations costs will be higher, and the teams will need more time and training facilities to drive the best outcomes from it. Maybe we can say that AI is still in the stage of growth, which has a long way to go. 

  • Lack of AI professionals

As AI technology brings more success to marketing, it requires the support of highly efficient employees to operate and match the information required to perform functions effectively and efficiently. However, there are not enough skillful individuals to think, learn and operate these smart tools.

  • Resource investment

Resource investment has always been an issue in the AI marketing sector due to its expenses and execution. AI is not channel-based but case-based. Hence if you want to run a search engine on your site, an effective algorithm would be the best choice for marketing.

  • IT infrastructure insufficiency

AI forms a huge amount of information that demands a strong IT framework. Moreover, an effective AI-driven marketing procedure needs high-performing hardware, frequent updates, and maintenance to assure the results. Therefore, insufficient IT infrastructure could be a hindrance, especially for small businesses.

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There are various predictions made by professional experts about the role of data science in revolutionizing Artificial Intelligence and machine learning soon. With our comprehensive curriculum and world-class facilities, we ensure to create an enriching learning experience and exposure for the students, helping them to gain a competitive edge in the AI marketing platforms.

Key takeaways:

  • AI has dramatically reshaped the landscape of marketing and will increase the opportunity for marketers to transform the dynamics of digital marketing in the future.
  • This latest technology unveils that there is still untapped potential in advertising and marketing a brand.
  • Is Artificial Intelligence the future of marketing? Since technology transforms too fast, it is difficult to predict the future. 
  • However, it is well-known by now that Artificial intelligence can significantly aid and enhance the future of marketing in India. Therefore, AI in digital marketing will continue to evolve and change the way businesses advertise their brand. 
  • In this fast-paced world, it is important to stay ahead with the latest trends and embrace new technologies today to reap the greatest benefits tomorrow. 


Information related to companies and external organizations is based on secondary research or the opinion of individual authors and must not be interpreted as the official information shared by the concerned organization.

Additionally, information like fee, eligibility, scholarships, finance options etc. on offerings and programs listed on Online Manipal may change as per the discretion of respective universities so please refer to the respective program page for latest information. Any information provided in blogs is not binding and cannot be taken as final.

  • TAGS
  • Artificial Intelligence
  • data science
  • Digital Marketing
  • Online MBA
  • Online MSC Data Science

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