The concept of Artificial Intelligence (AI) is not new. It's been almost 70 years since the term was coined, with AI going through phases of great enthusiasm, followed by periods of frustration, such as the famous "AI winter" between the 1960s and 1980s. However, the true AI revolution has occurred in the last 15 years. Between 2010 and 2020, AI not only replicated human abilities but surpassed them in areas such as image recognition and natural language processing. This was driven by the exponential increase in computing power and the evolution of algorithms.
During this period, marketing began to transform with the arrival of Marketing 4.0, a concept coined by Philip Kotler. He highlighted the transition from traditional to digital marketing, focusing on connectivity, engagement, and the growing role of communities, and AI began to play a crucial role in this process.
Today, with Marketing 5.0, we are entering a new era in which AI, automation, and massive data analytics not only digitize processes but also create personalized and profound experiences for consumers.
By 2024, AI will go far beyond operational automation; it will transform the way companies make strategic decisions, predict trends, and personalize experiences. The evolution of technologies, from simple prompts to complex APIs, has allowed AI to be applied in increasingly specific and impactful business contexts. It's not just about efficiency, but also about offering consumers a sense of exclusivity.
According to a McKinsey study, companies that invest strategically in AI are creating new revenue streams and competitive advantages, not just automating processes. One of the biggest impacts of AI on marketing is its combination with neuromarketing, a field that explores how the human brain reacts to emotional stimuli. By dynamically personalizing the customer experience in real time, AI can activate brain regions linked to reward and satisfaction, creating a deeper bond and increasing customer loyalty.
This personalization capability is crucial, especially at a time when 75% of companies haven't met their marketing goals and 74% have failed to meet their sales goals, according to RD Station's 2024 report. In this scenario, AI stands out as an essential tool in trying to reverse this trend, helping brands align their campaigns with individual consumer behavior and preferences.
Data from Marigold's 2024 Global Consumer Trends Index reveals that different generations respond differently to personalization:
- Generation Z (18–26 years old): 64% are more likely to engage with messages aligned with a brand's purpose. They seek authenticity and are attracted to exclusive content and brand communities. However, 51% are frustrated by overly automated and irrelevant personalization.
- Millennials (27–42 years old): 66% value brand purpose but are more engaged in loyalty programs. 42% feel dissatisfied when communications aren't properly personalized to their expectations.
- Generation X (43–58 years old): Focus on convenience and quality, with 59% prioritizing these aspects when making purchases. While cautious about data privacy, they are also unhappy with automated interactions that feel invasive or unnecessary.
- Boomers (59+): 46% are loyal to brands with which they have a long-term connection and are willing to pay more for that relationship. However, this generation is also intolerant of personalization that doesn't add real value.
This data demonstrates that personalization is more than a trend; it's a necessity for brands looking to build genuine connections with diverse audiences. Each generation has unique expectations, and AI allows companies to adjust their strategies to create a deeper, more relevant impact.
While the benefits of using AI in marketing are clear, with the increased use of AI in automated interactions, the challenge of saturation arises. There's a risk that, with so many personalized messages, authenticity and relevance will be lost. To avoid this, it will be crucial to find the balance between scalability and genuine personalization.
Brands that can manage this complexity will be ahead, ensuring meaningful interactions and maintaining consumer trust in an increasingly competitive and content-rich landscape. AI is, therefore, at the heart of this transformation, offering not only efficiency but also the ability to create unique and memorable experiences for each consumer, at every stage of their journey.