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With the rise of artificial intelligence (AI), marketers are rethinking how they plan, create, and compete. What once seemed impossible is now feasible, and companies are rushing to adopt AI into their business strategies, discovering its many benefits and hazards.
Reinventing Marketing
Marketing is a data driven industry, but AI is fundamentally changing that. While marketing has always relied on data, AI is transforming how that data is understood and utilized. It facilitates faster decision-making, streamlines content creation, and helps brands connect with consumers more cost-effectively. According to a McKinsey report, generative AI is already used in about 42% of organizations’ marketing and sales functions, making it a key driver of business growth. At the same time, AI’s adoption in the workplace is becoming more common. A SurveyMonkey poll found that 88% of marketers use AI daily. They use it for content generation, faster decision making, and for researching information.
The global AI market is projected to grow immensely from $47.3 billion in 2025 to $107.5 billion by 2028. AI is bringing more than a mere improvement; this is a monumental shift in the world of marketing.
AI as a Competitive Weapon
When used efficiently, AI can accelerate workflows, freeing human teams to focus on more important matters. For example, a financial technology firm, Klarna, estimates that it saves roughly $10 million annually in marketing costs from using AI to generate images and creative content.
Despite the fear of job loss, a majority of the monetary gains come not from replacing humans but allowing them to shift their attention toward higher-level work that AI cannot yet replicate.
Hidden Risks
Although the implementation of AI in marketing campaigns has many benefits, it comes with many tradeoffs. Companies risk destroying their expertise, credibility, and consumer trust if they lean too heavily on AI.
One significant risk is a tone-deaf or insensitive campaign. Lego’s recent Ninjago AI-generated promotion sparked major consumer backlash due to its poor execution, and it’s not the only example of misused AI.
- In 2024, Coca-Cola utilized AI to generate a Christmas advertisement that paid homage to their 1995 commercial “Holidays Are Coming.” The new advertisement disappointed social media users who claimed it lacked the human touch and creativity of the original.
- Also in 2024, Google released an advertisement for the NBC Olympics broadcast that was meant to highlight the capabilities of its Gemini AI tool. The 60-second ad, “Dear Sydney,” features a father using Gemini AI to help his daughter write a letter to her idol, Olympic track star Sydney McLaughlin-Levrone. Social media users criticized the advertisement heavily, claiming that it was absurd to use AI to produce heartfelt messages. The backlash was so extreme that Google pulled the advertisement from the broadcast.
- At the 2024 Cannes Lions festival, Toys R Us showcased its first brand video generated with OpenAI’s text-to-video tool, Sora. Users online found the video off-putting, describing it as missing the warmth and emotional response you expect from a typical brand story.
These examples highlight how quickly a brand’s reputation can be tarnished if AI marketing campaigns are released without review.
With the implementation of generative AI in marketing, there are ethical debates. Many argue that AI-generated images and designs threaten the careers of artists who deserve to be paid for their talents. On the other hand, companies are constantly chasing cost savings, utilizing AI for tasks like art production. Striking a balance between these ethical debates is challenging, but it can be done.
Strategy in the age of AI
To survive and thrive, marketers must treat AI not as a human replacement, but as a partner. They should review any content created by AI to confirm it is free of bias or insensitivity and that it aligns with the campaign’s goals and the business’s brand identity. Companies should consider merging human expertise with AI, allowing AI to manage routine tasks such as drafting and data sorting, while humans focus on more difficult tasks. However, they should take precautionary steps to prevent them from over relying on AI, ensuring that critical thinking, creativity, and brand identity remain in human hands. Finally, businesses should be transparent with consumers about AI use in campaigns. This builds trust, while concealing AI use risks backlash from consumers if it is discovered.
AI is single-handedly changing the landscape of marketing, but it is not the solution to every problem. Often, companies rush in without oversight and risk damaging their brand. By balancing AI with human judgment, businesses can unlock opportunities and save costs.
