In the dynamic realm of modern marketing, the integration of Artificial Intelligence (AI) has emerged as a crucial asset for businesses seeking to secure a competitive edge. This series of blogs delves into the dynamic intersection of AI and marketing strategies, uncovering how intelligent algorithms and machine learning are reshaping the landscape. From crafting personalized customer experiences to facilitating data-driven decision-making, join us as we explore the transformative power of AI in marketing. These articles provide insights and practical applications, catering to both seasoned marketers and those embarking on their digital journey. By demystifying the role of AI, we aim to shed light on its profound impact on the future of marketing.
Think the generative AI boom is bound to bust? A new report from the International Data Corporation says it’s time to buckle up.
Last week, the market intelligence firm released a new forecast predicting that generative AI investments will rise from $16 billion this year to a staggering $143 billion in 2027. While generative AI accounts for just 9% of overall AI spending in 2023, the firm expects that will increase to 28% within five years. IDC also noted generative AI’s growth rate is more double the growth rate of overall AI spending, and growing at a compound annual rate nearly 13 times higher than worldwide IT spending in the same time frame.
“When it comes to looking at AI strategy or even a data strategy in general, I think of generative AI kind of like this iceberg,” said Khendr’a Reid, a principal data strategy technical specialist at Amazon Web Services. “You see the tip is to generate AI, but it’s everything underneath it.” (Reid said this during one of the dozens of AI-related talks at Advertising Week in New York last week.)
Despite the rapid growth, the evolution of AI could also be challenged by increased data privacy protections in Europe and the U.S. Several more states are expected to enact newly passed privacy laws this year and others will take effect in 2024 and 2025. Earlier this month, California Governor Gavin Newsom signed “The Delete Act,” a new law that will enact new regulations for data brokers in the state.
Brian Quinn, President and GM at AppsFlyer, thinks the two landscapes “are really crashing in and these two forces could be at odds if not carefully managed.” This creates a “fundamental challenge” and “one of the largest challenges for marketers moving forward.”
“Privacy laws and restrictions are all around the principle of data minimization and protection,” Quinn said during another talk at Advertising Week. “And so a lot of what marketers have been contending with is [how to] get the same output and deliver the same experiences while protecting my consumer privacy with the loss of signal.”
Here’s a quick look at some of the other reports released last week that highlight potential opportunities and risks related to AI:
Prompted Products and other AI news
Other stories from Digiday and beyond
AI Hot Takes
Here are some of the things people said about AI during Advertising Week New York 2023: 
It’ll be a busy year for privacy laws at the international, national and state level, compounded by new rules related to AI and antitrust.
Influencer marketing and social media are poised for more growth in 2024 as trends from social commerce to paid media continue accelerating.
By using its own standards as well as those out of the ANA study, OMG delivered results for its own clients that it said outperformed the averages the ANA study revealed.
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