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