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Impact of Artificial Intelligence On Marketing: Corresponding Author: Mahabub Basha

This document summarizes a research article about the impact of artificial intelligence on marketing. The summary is: [1] Artificial intelligence is transforming marketing by enabling personalization at scale and analyzing large amounts of data. [2] The study interviewed 15 Indian marketing professionals to understand how AI is impacting their work and strategies. It found that AI benefits include improved performance but challenges include difficulty adapting to changing environments. [3] The study concludes that integrating AI into marketing tasks can improve corporate performance and competitive advantage.

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0% found this document useful (0 votes)
235 views12 pages

Impact of Artificial Intelligence On Marketing: Corresponding Author: Mahabub Basha

This document summarizes a research article about the impact of artificial intelligence on marketing. The summary is: [1] Artificial intelligence is transforming marketing by enabling personalization at scale and analyzing large amounts of data. [2] The study interviewed 15 Indian marketing professionals to understand how AI is impacting their work and strategies. It found that AI benefits include improved performance but challenges include difficulty adapting to changing environments. [3] The study concludes that integrating AI into marketing tasks can improve corporate performance and competitive advantage.

Uploaded by

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East Asian Journal of Multidisciplinary Research (EAJMR)

Vol. 2, No.3 2023: 993-1004

Impact of artificial intelligence on marketing

Mahabub Basha
Department of Commerce IIBS, Bangalore
Corresponding Author: Mahabub Basha [email protected]

ARTICLEINFO ABSTRACT
Keywords: Artificial The evolution of artificial intelligence (AI) has
Intelligence, Strategic drastically changed the dynamics of today’s
Marketing, Artificial business world. One of the most significant
Intelligence Marketing,
applications of AI is in the field of marketing,
Competitive Advantage
which assists in enhancing performance. The
Received : 05, January current research aims at finding out the impact
Revised : 10, February of AI in marketing. A thorough literature
Accepted: 15, March research was highlighted, providing a strong
knowledge of AI and its use in marketing.
©2023 Basha: This is an open-access Second, the researcher employed a qualitative
article distributed under the terms of study strategy that included semi-structured
the Creative Commons Atribusi 4.0 interviews with marketing professionals from
Internasional. several Indian companies. The researcher chose
a sample size of fifteen marketing experts to
interview. The study's findings emphasise the
elements that influence AI integration in
marketing, the benefits and obstacles of AI
integration in marketing, as well as your
company's pre and post AI marketing strategy,
ethical considerations, and use of AI in the
marketing industry. The study proposes
integrating AI into marketing tasks in order to
improve corporate performance and, as a result,
achieve profitability and competitive advantage.
This study also contributes to strategic
marketing research by identifying research gaps
that bridge strategic AI marketing practise and
research in a systematic and rigorous manner.

DOI prefix: https://doi.org/10.55927/eajmr.v2i3.3112 993


( ISSN-E: 2828-1519
https://journal.yp3a.org/index.php/eajmr
Basha

INTRODUCTION
Artificial Intelligence Marketing (AIM) is a strategy for maximising the
use of technology and market data in order to improve the customer experience
(Jain and Aggarwal, 2020). By analysing large amounts of data, AI can bridge
the gap between data science and implementation, which previously been an
impossible task (T.Thiraviyam, 2018). Marketing encompasses all techniques
that can have a large influence on people at a certain time, in a specific location,
and through a specific channel. The advancement of digital marketing as an
industry is the result of integrating big data with academic scientific study on
intelligent systems. ( Gkikas and Theodoridis, 2019). The internet of things
(IoT), data science, cloud computing, big data, artificial intelligence (AI), and
block chain are all technological innovations that are transforming the way we
live, work, and play. Further development of these technologies might lead to
hyper automation and mega networking, ushering in the Fourth Industrial
Revolution (or Industry 4.0). (Bloem 2014; Klosters 2016;Schwab 2017;Park
2017;Soni Neha et al. 2019). Artificial Intelligence (AI) assists marketers in
achieving complete personalisation and relevance. It will eventually accomplish
communication at scale with platforms like Search, Facebook, YouTube, and
Google reaching billions of people every day, as well as digital ad networks.
The future holds the application and implementation of Artificial Intelligence
(Savica Dimitrieska et al., 2018). With the growth of AI, the world of marketing
is evolving swiftly and will continue to do the same.
The speed with which this transition occurs will alter the general
landscape of marketing in academia, research, and the commercial world.
Organizations will have a significant difficulty in adapting to the shifting
environment of marketing. With the introduction of new technologies,
businesses will need to train their personnel on a regular basis. Working with
AI is no longer considered science fiction, but rather a reality that will become a
need for existence (Shahid and Li, 2019). To be ready for the near future,
marketing workers must comprehend and learn how to strengthen and match
their abilities for AI and robotics. The current situation is both fascinating and
problematic. The influence of AI on marketing will be examined through the
eyes of marketing professionals in Prayagraj, India.
Artificial intelligence (AI) is transforming the marketing environment
and will entirely change it in the near future. Despite the fact that marketing is
one of the most important commercial uses of AI today, and early adopters are
striving to build value from it (Bughin et al. (2017)), there is a paucity of
literature on this topic when two disciplines are integrated (Wierenga, 2010).
Artificial intelligence (AI) is used in a variety of business processes across
numerous functional domains and business operations. One of them is
marketing, which is regarded as the business's heart.
Artificial intelligence (AI) is transforming the marketing environment
and will entirely change it in the near future (Shahid and Li, 2019). Wierenga
(2010) also mentioned that there aren't enough publications on AI in marketing
and AI in marketing literature. As per Martnez-López & Casillas (2013), Scopus
has less than 50 publications in business journals linked to marketing and AI.

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East Asian Journal of Multidisciplinary Research (EAJMR)
Vol. 2 No. 3, 2023: 993-1004

Following then, the amount of study on the issue in Scopus rose, although it is
still under 100. More studies on the influence of AI on marketing are needed,
according to Martnez-López & Casillas (2013), because there is a paucity of
study in the literature and the potential of the combination in making
marketing choices. The study will look at this critical topic through the eyes of a
marketing professional in Prayagraj, India.

THEORETICAL REVIEW
There is a paucity of marketing literature on AI, leading our attempt to
offer a framework that defines both where AI is now and how it is expected to
evolve. Although prior concepts and principles have been investigated to
address marketing-related issues for a long time (Wierenga & Bruggen, 2000),
the widespread use and deployment of AI in marketing has only recently
emerged (Wierenga, 2010).
Although AI has been applied in the majority of firms in today's world,
there is still a lack of high-level implementation in many companies. Various
marketers have shown an interest in using AI in the near future, with almost all
of them prepared to do so fully. In contrast, just 20% of marketers used one or
more AI solutions in their businesses in 2017. (Bughin, McCarthy & Chui, 2017).
Marketers want to utilise AI in areas such as segmentation and analytics (all of
which are connected to marketing strategy), as well as messaging,
customization, and predictive behaviours (all of which are related to consumer
behaviour) (Columbus 2019; Davenport Thomas et al. 2019). Artificial
intelligence (AI) is the intelligence displayed by machines, unlike human
intelligence. Artificial intelligence is represented by a system of intelligent agent
machines that observes the environment and achieves its purpose (Sanjeev
Verma et al., 2021). The implication of AI is required to assess client behaviours,
purchases, likes, dislikes, and various other factors, ( Chatterjee et al., 2019 ).
Artificial Intelligence has emerged as a panacea for small-scale
businesses in the period of globalisation, as it has allowed thesm to become
worldwide and do business through the internet. Artificial intelligence (AI) has
the potential to assist marketing managers with a variety of tasks, including
lead generation, market research, social media management, and user
experience personalization (Sterne, 2017). Artificial intelligence has grown in a
highly efficient and useful way in the globalised commercial climate
(Parasmehak Khokhar & Chitsimran, 2019). Artificial intelligence (AI) has
grown in importance in virtually every field in the twenty-first century,
including engineering, scientific knowledge, education, medical science,
business, accounting, finance, marketing, economics, stock market, and law
(Halal (2003), Masnikosa (1998), Metaxiotis et al. (2003), Raynor (2000), Stefanuk
and Zhozhikashvili (2002), Tay and Ho (1992), and Wongpinunwatana et
al.(2000), T. Thiraviyam,2018.

METHODOLOGY
The researcher used a qualitative research approach to carry out this
study. The qualitative technique is essentially exploratory research that is used

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to learn about the causes, viewpoints, and opinions in order to address the
study topic. Because the goal of the study is to learn about the influence of AI
on marketing from the perspective of marketing experts, qualitative research is
the ideal option. The research will use both primary and secondary sources to
acquire data. The researcher acquired primary to answer the study's questions,
and this information was obtained using the interview technique. As a
secondary data source, many publications, journals, books, websites, and blogs
are included.
Interviews are performed with marketing specialists from Indian
businesses. A sample size of fifteen participants was chosen, and interviews
were performed with fifteen Indian marketing experts. Purposive sampling was
utilised by the researcher, which means that respondents were included in the
study for a specified reason.
The primary criterion for inclusion in the study was that respondents
must work for a firm that uses AI in the marketing department. The reasoning
behind this was that marketers who had firsthand experience with AI
deployment would be able to offer a more accurate assessment of AI's influence
on marketing.
The interview approach was used, with the respondents being asked a
series of open-ended questions. However, in order to follow the inductive
research approach, where current hypotheses are not limited, the researcher
was prepared to add new questions to the interview based on the
circumstances. Because the study is cross-sectional in design, the data from the
respondents will be collected over the course of one month.

RESULTS AND DISCUSSION


The analysis of the data obtained from the research respondents is offered in
this part. In total, fifteen marketing experts from 10 different Indian firms were
interviewed. Table 1 gives an overview of the responder profile.

Respondents City-Country Industry Position Years Of


Experience
Respondent 1 Bangalore, Electronics Marketing 5years
India Director
Respondent 2 Bangalore, Consumer Marketing 3 years
India Goods Manager
Respondent 3 Bangalore, IT Marketing 4 years
India Executive
Respondent 4 Bangalore, Electronics Head of 7 years
India Marketing
Respondent 5 Bangalore, Electronics Marketing 4 years
India Specialist
Respondent 6 Bangalore, Consumer Marketing 3 years
India Goods Executive
Respondent 7 Bangalore, Consumer Marketing 6 years
India Goods Director

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East Asian Journal of Multidisciplinary Research (EAJMR)
Vol. 2 No. 3, 2023: 993-1004

Respondent 8 Bangalore, Consumer Marketing 4 years


India Goods Specialist
Respondent 9 Bangalore, IT Head of 9 years
India Marketing
Respondent 10 Bangalore, IT Marketing 3 years
India Manager
Respondent 11 Bangalore, Electronics Marketing 3 years
India Executive
Respondent 12 Bangalore, Consumer Head of 8 years
India Goods Marketing
Respondent 13 Bangalore, Consumer Assistant 2 years
India Goods Marketing
Manager
Respondent 14 Bangalore, Electronics Marketing 5 years
India Manager
Respondent 15 Bangalore, IT Marketing 7 years
India Director
Table 1. Profile of the Respondents
Interview Analysis
This section delves into the details of the interview. The following are the
main interview questions, which are discussed in depth in this section:
 What elements play a role in incorporating AI into marketing?
 What are the main advantages of using AI into marketing?
 What are the main obstacles in incorporating AI into marketing?
 What are the ethical implications of incorporating artificial
intelligence into marketing?
 What role does AI play in your company's marketing functions?
 What is your company's pre-AI and post-AI marketing strategy?

1. Influencing Factors In Integrating AI In Marketing


The primary influential element in incorporating AI in marketing,
according to the respondents, is competitive pressure. Many businesses are
feeling the push from competitors to include AI into their marketing strategies.
Respondent 1 stated, "There is a sense of urgency among competitive
organisations to integrate AI into the marketing process." According to
Respondent 2, he has noted that the company's management has began to push
for AI integration in marketing, citing media attention, competitive pressure,
and digital maturity as reasons for their desire to do so. Respondent 3
mentioned external and competition pressure, as well as the hoopla around AI
integration in marketing tasks. "Firms are now talking about this major
phenomena and utilising it in their marketing functions," he said. The pressure
from rivals is a big element, as the corporation understood that in order to
stand out from the competition, they must integrate AI into their marketing
operations." Consumers' pressure was not visible, but Respondent 4 noted that
the company recognised that customers sought for companies with the finest

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services and performance, thus they felt compelled to include AI-related


technologies.
2. Benefits of Artificial Intelligence in Marketing
When questioned about the advantages of using AI into marketing,
respondents gave a variety of answers. Respondent 5 and 6 felt that
incorporating AI into marketing operations would help the company increase
efficiency and save time in the marketing functions, and it is now clear that AI
assisted the company in improving marketing processes.
According to Respondent 7, the advantages of implementing AI-based software
in our firm included increased conversion rates, a better grasp of consumer
data, and the ability to make more informed marketing decisions. Most
significantly, it aided in enhancing the return on investment. The advantages of
AI integration, according to Respondent 8, include insights and marketing
decisions. The main benefit of AI adoption in marketing, according to
Respondent 9, is the insights. The AI-based software's findings may be used to a
variety of operations, including pricing and new product creation. According to
Respondent !0, the main benefit of using AI-based software in marketing is that
it allows the firm to deliver better service and provide more value to clients,
resulting in the highest degree of customer satisfaction. Improved data analysis
and efficient marketing operations are among the other advantages.
3. Major challenges of AI Integration in Marketing
According to the responses, technical compatibility is the most difficult
aspect of AI integration. In order to address the compatibility issue, 11 said the
business worked on making it simple to integrate their system with major CRM
systems. It remains a huge problem for us, and the organisation has been trying
to improve the process on a constant basis. Complex software and IT systems,
according to Respondent 12, are also a huge obstacle. As a result, it is critical for
businesses to focus on compatibility concerns.
Four respondents said the largest issue for overall marketing operations
following AI integration is a lack of technical capabilities in a team. According
to Respondent 13, the organisation has to train its marketing team in order to
get them ready for AI adoption. Adoption of new technology in a firm is
undoubtedly a transformational process, and it is critical to recognise and
address the problems ahead of time. Companies should not be hesitant to adopt
new technologies if they want to gain a competitive edge. Respondents also felt
that having data in place is critical since it is the most significant aspect of AI;
consequently, data is also the largest hurdle, according to them.
4. Ethical Aspect of AI in Marketing
According to the respondents, data is the most important ethical factor to
consider when dealing with clients. According to Respondent 14 in order to
tackle this problem, the firm collects data anonymously; this means that the
data is not linked to the users who create it. According to Respondent 15, their
main goal is to offer a small quantity of personal information. Respondent 13
discussed two separate ethical implications of artificial intelligence in
marketing. Ethical problems, she feels, should be examined since they are
extremely essential, but she believes that firms do not consider them when

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East Asian Journal of Multidisciplinary Research (EAJMR)
Vol. 2 No. 3, 2023: 993-1004

planning to use knowledge-driven AI software. The use of data in the


marketing environment is a crucial component of ethics.
Second, even the development team finds it difficult to comprehend the
decision to use AI. If a corporation does not examine the immoral decisions
taken, this might become the most difficult task. Data, according to Respondent
15, is the most ethical component of AI in marketing, and it must be considered
throughout the process. She added that the firm had considered the ethical
implications of the new system before implementing it, and that the company's
core policy was not to collect personal information from clients. She went on to
say that it's critical to disclose any ethical concerns to the buyer. As a result, our
organisation informs the consumer about the sort of data that will be acquired
from them.
5. Usage of AI in marketing functions
According to the respondents, AI has improved the effectiveness of
marketing functions and is now employed in virtually all major marketing
operations. According to them, AI aids in the development of sales and
marketing strategies that result in significant gains in corporate performance.
AI has been employed in all marketing-related tasks, including pricing,
promotion, distribution, and product planning and development, according to
Respondent 8. According to Respondent 12, AI is mostly employed in the
digital platform, advertising, and customer relationship management .As per to
Respondent 5, AI is widely employed in digital marketing, including content
curation, email marketing, digital advertising, web design, chatbots, and
predictive analysis.
6. Pre and post AI marketing strategy
The application of AI in marketing does, in fact, alter the dynamics of the
total business. Similarly, it affects the company's strategies. According to
Respondent 7, prior to implementing AI in marketing, the focus was on
increasing marketing resources and expanding product offerings.
Following the adoption of AI, marketing managers were drawn to
business intelligence, which provided them with a better grasp of marketing,
sales, and operations trends. They created predictive models based on the data
in order to forecast future strategies. Respondent 5 said that AI had
revolutionised the company's marketing strategy. The firm decided to invest in
AI in terms of customer service since customer service was the top priority and
the strategies were developed to deliver the greatest customer service, and they
noticed a substantial increase in customer service. It aided in the enhancement
of responsiveness and efficiency. Furthermore, the corporation is making AI
investment decisions in the future. Prior to the deployment of AI, Ali Hassan
claims that the market strategy was centred on long-term client value and
redirecting marketing efforts on new modes of communication. Following the
adoption of AI, the firm began focusing on social media reach, personalisation,
improved data collection, SEO, payment procedures, and sales optimization,
with all initiatives geared toward these goals.

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CONCLUSIONS AND RECOMMENDATIONS


The purpose of the article was to investigate the influence of AI on
marketing from the perspective of Indian marketing experts. Different
measures were taken in order to achieve the research's goal and answer the
research questions. A complete literature study was first emphasised, which
gave a detailed grasp of AI and its use in marketing by including the
perspectives of many scholars. Second, the researcher employed a qualitative
study approach that included semi structured interviews with 15 marketing
professionals from ten different Indian organisations. The research's main
findings revealed that competitive pressure, media attention, digital maturity,
and customers are the important influencing variables in incorporating AI in
marketing. Different replies were received from the respondents on the results
relating to the benefits of incorporating AI in marketing. According to
marketing professionals, the major benefits include increased efficiency, time
savings in marketing functions, improved conversion rates, a better
understanding of customer information, more feasible marketing decisions,
increased ROI, insights, improved service, and customer satisfaction. Improved
data analysis and efficient marketing operations are among the other
advantages. In response to a question on the most difficult aspect of AI
integration in marketing, respondents said that technical compatibility is the
most difficult aspect. Respondents also felt that having data in place is critical
since it is the most significant aspect of AI; consequently, data is also the largest
hurdle, according to them. According to the respondents, data is the most
important ethical factor to consider when dealing with clients.
When asked about the use of AI in the company's marketing,
respondents responded that AI has improved the marketing function's
effectiveness and that it is now employed in virtually all of the main marketing
functions. According to them, AI aids in the development of sales and
marketing strategies that result in significant gains in corporate performance.
The studies above emphasise the relevance of AI in corporate marketing. AI has
changed the marketing environment and is assisting in the modernization of
outmoded marketing strategies. Organizations will have a significant difficulty
in adapting to the shifting environment of marketing. With the rise of
innovation, businesses must plan for the future and train their personnel on a
continuous basis. The research has made a good contribution to the existing
literature by filling in the gaps in the literature by focusing on the influence of
AI in marketing from the perspective of a marketing professional.
This underscored the relevance of AI in marketing as well as the
numerous advantages that come with its incorporation. Furthermore, the
primary hurdles, ethical considerations, and applications presented firms with
a roadmap for implementing AI in marketing. Firms should pay attention to the
aspects and problems of incorporating AI into marketing.

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