How Artificial intelligence (AI) Is Changing Marketing

Sultan Mahmud & Hashin Raees

MBA-MARKETING

Christ (Deemed to be university), Lavasa

Abstract

The rise of artificial intelligence (AI) has changed the elements of the business
world. One of the critical uses of AI is in the marketing field that helps in
improved performance. The present research is planned to discover the effect of
AI in marketing by including the point of view of marketing experts of India and
other parts of the world.

Introduction

Artificial intelligence (AI) marketing is a technique for utilizing client

information to foresee the customer’s next move and improve the client venture.
Artificial intelligence offers the best approach to conquer any hindrance between
information science and execution by filtering through and breaking down
immense dumps of information which was before a difficult procedure.

The creation and storage of information is as of now occurring at a huge rate, and
it's developing exponentially every day. By 2020, it is normal that the world will

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have made more than 40 zettabytes of information (1 zettabyte = 1 trillion
terabytes), with 80-90% of it being unstructured. The development of big data
and advanced diagnostic arrangements has made it feasible for advertisers to
construct an away from of their intended interest groups than at any other time
before.

Artificial intelligence can process both organized and unstructured information

with exponentially more speed and accuracy than any human could. It is a key
focal point for organizations attempting to compose their buyer data in a basic
way. Marketers are utilizing the capacity of AI to make associations between
information points in request to pick up bits of knowledge into their client base.
These frameworks can dissect discourse to decide feeling from spoken language,
make visual renderings to show online life patterns, and crunch information to
make expectations.

Literature review

Researchers propose that AI “refers to programs, algorithms, systems and

machines that demonstrate intelligence”

 Sanjiv Mehta, CEO & MD of Hindustan Unilever Ltd (Corporate

citizen) stated that -The core of marketing hasn’t changed, but the way we
communicate has changed marketing. It is transforming every day. That’s
where the big shift has happened. The art of storytelling is very much there
but how we tell the story and the medium through which we tell the story
is the key. The big changes that will happen in marketing, just as in
business, is artificial intelligence and machine learning.
 As stated by Demis Hassabis, who is the founder of Deep mind – the AI
Company of Google, “Artificial intelligence is the art to make machines

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 intelligent (Ahmed, 2015).” It is the most widely accepted definition and
also a well-fitting since AI is a broader term used for a number of a variety
of indicators.

 Thomas H. Davenport (Artificial Intelligence for Marketing by Jim

Sterne ) stated that -It’s not that difficult to argue that marketing in the
future will make increasing use of AI. Even today, the components of an
AI – based approach are largely in place. Contemporary marketing is
increasingly quantitative, targeted, and tied to business outcomes. Ads and
promotions are increasingly customized to individual consumers in real
time. Companies employ multiple channels to get to customers, but all of
them increasingly employ digital content. Company marketers still work
with agencies, many of which have developed analytical capabilities of
their own.

 Maria Johnsen (The future of Artificial Intelligence in Digital Marketing)

stated that - there has been a lot of myths, and also criticisms by other
scientist claiming that such highly sophisticated behaviour as love, creative
discovery and moral choice will always be beyond the scope of any
machine. Some even believed the AI was the way to a rule by machines.
Some say AI is nothing but nonsense cladded in technical terms but today
it is an essential base for modern technology and solves many difficult
problems in computer science. While AI will be accomplished by studying
how human brain thinks, and how human learn, decide, and work while
trying to solve a problem, and then using the outcomes of the study as a
basis of developing intelligent software and systems

Research methodology

The paper look through the different measurements connected to the idea of
artificial intelligence impact in marketing. This paper is an expressive report,
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where models are referred to dependent on the references from some optional
material available and some from the individual experiences. The study proposes
a few estimates that can help marketers to improve their marketing techniques. In
addition, different articles, journals, books, websites and blogs are included as a
secondary data source.

Research objective

The primary objective of taking up this study is to analyse various aspects of

artificial intelligence, and to reveal the necessity of adapting it as a marketing
strategy by the marketers for the marketing of their product and services and the
impacts of it.

Research Questions

The research will address the following questions:

1. What is the impact of Artificial intelligence on Marketing?

2. What is the recommendation for the effective utilization of Artificial

intelligence technologies in marketing?

3. What are the various difficulties in the utilization of AI technologies in

marketing?

Artificial intelligence, machine learning and deep learning

Artificial intelligence is a branch of software engineering that manages building

intelligent machines that can think and reacts like people. The Turing test,
proposed by English mathematician Alan m. Turing in 1950, was a test that

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 decided the knowledge of computers and was taken so as to distinguish whether
the computer could achieve human level execution in every single intellectual
undertaking

Machine learning is a subset of AI that empowers machines to consequently learn

and improve from experience. Specific frameworks are made for this reason and
no express writing computer programs is expected to add new definitions to the
database.

Deep learning is a subset of AI contained amazingly huge neural systems and a

massive collection of algorithms that can mimic human insight.

The arrival of the straightforward reply answer by google is powered by AI and

the arrival of the "people also ask" segment is controlled by deep learning. Google
is continually learning and copying human intelligence without the requirement
for people to take care of the considerable number of answers into its enormous
database.

How artificial intelligence works?

AI works by combining large amounts of data with fast, iterative processing and
intelligent algorithms, allowing the software to learn automatically from patterns
or features in the data. AI is a broad field of study that includes many theories,
methods and technologies, as well as the following major subfields:

 Machine learning automates analytical model building. It uses methods from

neural networks, statistics, operations research and physics to find hidden insights
in data without explicitly being programmed for where to look or what to
conclude.

 A neural network is a type of machine learning that is made up of interconnected

units (like neurons) that processes information by responding to external inputs,

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 relaying information between each unit. The process requires multiple passes at
the data to find connections and derive meaning from undefined data.

 Deep learning uses huge neural networks with many layers of processing units,
taking advantage of advances in computing power and improved training
techniques to learn complex patterns in large amounts of data. Common
applications include image and speech recognition.

 Cognitive computing is a subfield of AI that strives for a natural, human-like

interaction with machines. Using AI and cognitive computing, the ultimate goal
is for a machine to simulate human processes through the ability to interpret
images and speech – and then speak coherently in response.

 Computer vision relies on pattern recognition and deep learning to recognize

what’s in a picture or video. When machines can process, analyze and understand
images, they can capture images or videos in real time and interpret their
surroundings.
 Natural language processing (NLP) is the ability of computers to analyze,
understand and generate human language, including speech. The next stage of
NLP is natural language interaction, which allows humans to communicate with
computers using normal, everyday language to perform tasks.

 Graphical processing units are key to AI because they provide the heavy
compute power that’s required for iterative processing. Training neural networks
requires big data plus compute power.
 The Internet of Things generates massive amounts of data from connected
devices, most of it unanalyzed. Automating models with AI will allow us to use
more of it.
 Advanced algorithms are being developed and combined in new ways to
analyze more data faster and at multiple levels. This intelligent processing is key
to identifying and predicting rare events, understanding complex systems and
optimizing unique scenarios.

 Apis, or application programming interfaces, are portable packages of code

that make it possible to add AI functionality to existing products and software
packages. They can add image recognition capabilities to home security systems
and Q&A capabilities that describe data, create captions and headlines, or call out
interesting patterns and insights in data

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Marketing strategies in digital era

Right now, there are numerous organizations that develop quickly as a result of
the accessibility of assistive technologies. The most famous utilization of
innovation in marketing is web based life. Internet based life has been a very
important resource in marketing advancement and is important in business
development. Not just on the grounds that today is computerized era, but likewise
in light of the fact that it is simple. With all these new advances, there are some
new marketing procedures for specialists to advance their item. Some of them are
talks about below.

Content marketing – Content marketing is presently a significant concentration

for some brands in light of its important role in online life, interactive media, and
portable hunt. It is in reality significant to create brand awareness.

Mobile marketing – Many individuals currently utilize advanced mobile phones

and tablets since it is simple and time productive on the grounds that they can
bring it all over the place and access it whenever they need. The continuously
increase of advanced cells and tablet clients make the accessibility of marketing
content for versatile platform because a need. Organizations ought to overhaul
their site to make it receptive to portable devices.

Integrated digital marketing – Integrated marketing is important to guarantee

that all informing and communications systems that utilized in marketing are
brought together across and revolved around client. For e.g. Google has invented
Google + with many reasons, but one of them is to able to see and catch social
signal and pattern.

Continuous marketing – Actively and persistently reminding the customer

about the item is one of the well-known marketing systems at the present time.

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Personalized marketing – The marketing approach through customary media,
for example, tv becomes less successful on account of media immersion.
Presently there is another marketing methodology called personalized marketing.
Utilizing computer programming to peruse and make singular messages.
Computer will read customer' behaviour and give them applicable information.

Visual marketing – Instagram, Pinterest, Slide share and significantly more can
be utilized for this methodology. It is necessary to have the option to place
marketing message and sign in an item or picture. This new marketing trend is
used to raise the inclusion of digital marketing.

Advantages in adapting Artificial Intelligence systems:

To customers:

1. AI based intelligence frameworks can help clients 24x7.

2. Search meetings get simpler as AI effectively tracks client conduct and predicts
their future web conduct and decisions, which would prompt better watchwords
and even, expands utilization of semantic catchphrases.

3. They can hold client information and they don't need to repeat with each
interaction.

4. They are friendly and consistently treat clients respectfully and with patience.

5. They can deal with a few client demands at the same time, so the holding up
time is decreased to nil

To marketers:

1. AI is the base for digital assistance. Furnished with enormous information

experiences, advanced advertisers can incredibly support their campaign’s
exhibition and profit for investment.

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2. Negligible manual work and records for lesser errors.

3. It guarantees the correct message is being conveyed to the ideal individual at

the right time, by means of the channel of choice.

4. It advances brand picture of the organization and constructs increasingly

forthcoming clients which builds the deal of goods and services.

5. Customized promotions can be made for the clients to support up sales.

6. They have the ability to follow client buy designs which permits the business
to redo existing marketing system and increment deals.

7. It goes about as a successful method to make a relationship with the shopper

that has profundity and relevance.

Risks and limitations in artificial intelligence marketing:

1. AI is restricted distinctly by the accessibility of data.

2. Repeating undertakings can undoubtedly be moved over to AI frameworks

however assignments that need human intercession will still lay on the shoulders
of people.

3. Like any type of new innovation, there can be a critical expense of procurement
and support. There turn on speculation should be painstakingly considered by our
organization before an AI framework is implemented.

4. Usage of AI frameworks is time consuming.

5. Calculations cannot be right as computers can't do it without humans.

6. Client protection isn't considered

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Need of adjusting AI as a marketing technique:

Effective marketing strategy will take the correct choices to make an organization
fruitful on the web. To achieve fruitful marketing strategy, it is important to catch
up on new social trends and to continue interfacing with the customer.
Accordingly, the intensity of AI frameworks in digital marketing techniques
empowers a marketer to market his product or services and prep AI l in his
business activities.

Findings

Artificial intelligence is not here to replace us. It augments our abilities and makes
us better at what we do. Because AI algorithms learn differently than humans,
they look at things differently. They can see relationships and patterns that escape
us. Improve the performance of existing analytic technologies, like computer
vision and time series analysis. Give us better vision, better understanding, better
memory and much more.

Suggestions

AI will need to address societal concerns including unintended consequences,

misuse, algorithmic bias, and questions about data privacy. Our research suggests
that labour substitution could account for less than half of the total benefit. AI
will augment human capabilities, freeing up workers to engage in more
productive and higher-value tasks, and increase demand for jobs associated with
AI technologies.

Conclusion: We need to create one-on-one associations with the customer. That

is the need of great importance; that is what will cause us to get by in the new
world. Marketing as its centre is about the psyche and heart. It is about insight

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and emotion. Despite the fact that we need to give the utilitarian advantages, we
additionally need to consume the passionate space in the minds of the shoppers.

The manner in which we speak with purchasers has changed marketing. It is

transforming each day and that’s where the huge move has occurred. The large
change that is going on in marketing, are man-made reasoning and machine
learning. It makes new open doors for narrating and marketing. It will change
how individuals interact with data, innovation, brands and administrations.
Therefore, marketers must adjust man-made brainpower frameworks in their
marketing procedures to prevail in the present period of advanced marketing. It
sets aside both time and cash for the marketers, clients, prospects; and consumes
the brains of clients without human intercession.

References

1. Adami, C. (2015). Artificial intelligence: Robots with instincts. Nature,

521(7553), 426–427.
2. Agrawal, A., Gans, J. S., & Goldfarb, A. (2018). Prediction machines: The
simple economics of artificial intelligence. Harvard Business School Press.
3. Chui, M., Manyika, J., Miremadi, M., Henke, N., Chung, R., Nel, P., &
Malhotra, S. (2018). Notes from the AI frontier: Applications and value of
deep learning. Mckinsey global institute discussion paper, April 2018.
Retrieved June 12, 2019 from https://www.mckinsey.com/featured-
insights/artificial-intelligence/notes-from-the-ai-frontier-applications-
and-value-of-deep-learning
4. www.iec.edu.in
5. https://en.m.wikipedia.org/wiki/machine_learning

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6. https://www.doc.ic.ac.uk/~nd/surprise_96/journal/vol4/cs11/report.html
7. https://www.singlegrain.com/digital-marketing-strategy/how-artificial-
intelligence-is-revolutionizing-the-digital-marketing-sphere/
8. https://www.inc.com/james-paine/how-ai-canbe-used-to-increase-
sales.html
9. https://www.quora.com/in/how-is-artificial-intelligence-programmed
10.https://futurism.com/1-evergreen-making-sense-of-terms-deep-learning-
machine-learning-and-ai/
11.https://www.emarsys.com/en/resources/blog/artificial-intelligence-
marketing-solutions/
12.https://www.thinkwithgoogle.com/marketing-resources/ai-personalized-
marketing/
13.https://www.forbes.com/sites/louiscolumbus/2018/02/25/10-ways-
machine-learning-is-revolutionizing-marketing/

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