The concept of Artificial Intelligence (AI) is not new. It has 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 “inverno of AI” between the 1960s and 1980s. However, the real revolution of AI has occurred in the last 15 years. Between 2010 and 2020, AI has 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 capacity and 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 has come to play a crucial role in this process.
Today, with Marketing 5.0, we are in a new era, in which AI, automation and mass data analytics not only digitize processes, but create personalized and deep experiences for consumers.
In 2024, AI goes far beyond operational automations; it transforms the way companies make strategic decisions, predict trends and personalize experiences prompts for complex APIs, it has allowed AI to be applied in increasingly specific and impactful business contexts.It is not just about efficiency, but about offering the consumer the feeling of exclusivity.
According to a McKinsey study, companies that invest in AI strategically are creating new revenue streams and competitive advantages, not just automating processes.One of the biggest impacts of AI on 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 personalization 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 the 2024 RD Station report.In this scenario, AI stands out as an essential tool to try to reverse this trend, helping brands align their campaigns to consumer behavior and individual preferences.
Data from the Marigold’s 2024 Global Consumer Trends Index reveals that different generations respond differently to personalization:
- Generation Z (1826 years): 64% are more likely to engage with messages aligned with brand purpose. They seek authenticity and are attracted to unique content and brand communities.However, 51% are frustrated with overly automated and irrelevant customizations.
- Millennials (2742 years old): 66% value brand purpose but are more engaged in loyalty programs. 42% feel dissatisfied when communications are not properly customized to your expectations.
- Generation X (4358 years): They focus on convenience and quality, with 59% prioritizing these aspects when shopping. While cautious about data privacy, they are also unhappy with 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.
This data demonstrates 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 fine-tune their strategies to create a deeper and more relevant impact.
While the advantages of using AI in marketing are evident, with the increased use of AI in automated interactions, the challenge of saturation arises.There is a risk that with so many personalized messages, authenticity and relevance will be lost. To avoid this, it will be critical to find the balance between scalability and genuine personalization.
Brands that manage this complexity will be at the forefront, ensuring meaningful interactions and maintaining consumer confidence in an increasingly competitive and content-rich landscape. 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.