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Most individuals view artificial intelligence (AI) as a relatively new invention, but its origins can be traced back many years. AI has improved a lot over the years and is now an integral part of almost every company's marketing plan, which explains why Forbes states that 80% of businesses are using AI in different capacities. The reason why most companies are integrating AI is that it is optimised to process and analyse petabytes worth of data, unveiling evolving customer behaviors and insights that could take experts a long time to understand. For instance, the AI chatbots operated by Sephora can address customer queries with astonishing precision.
This technology enables human agents to address more complex queries, which in turn increases customer satisfaction and reduces expenses. Statista forecasts a huge 27.67% growth of the global AI market, which is expected to reach an astounding US$826.70 billion by 2030. AI adoption is growing by leaps and bounds in many industries, playing a crucial role in the advancement and innovation of different sectors. By incorporating AI into business operations, companies can work more effectively, enhance customer support, and shift quicker to emerging trends in the market, which gives them a competitive advantage.
This new approach to strategy with a focus on marketing comes as a result of hyper-personalisation. This means that the traditional models of marketing are, and will always be, ineffective in grabbing consumer attention in today’s interconnected world. Modern customers demand that the services they are provided with are personalised, something that AI-powered software can accomplish. This software assists in recommendation marketing, constructing marketing strategies, and planning campaigns by examining a user’s browsing history, shopping history, and profiles from social platforms. A classical example can be found with companies such as Netflix and Spotify, where users are presented with movies, shows, and even music based on AI analytics of the individual’s preferences. This shift is now changing to standard operating procedures, and research indicates that 71% of customers expressed their feelings, particularly annoyance, towards business practices without detailed targeting. The good news for businesses is that those who incorporate these technologies can increase sales by 20%. Making recommendations when they are most needed not only increases customer satisfaction but also enhances their trust in the company, developing a very loyal and enduring clientele.
Apart from hyper-personalisation, effective communication plays a key role in building relationships that stick for a long time, and conversational artificial intelligence is making great progress in this direction. No more enduring long wait times to get help with customer service issues. Now, AI chatbots are available to provide immediate assistance around the clock. H&M, for example, uses chatbots to recommend and assist customers with their online purchases. These chatbots have evolved beyond answering simple inquiries.
Today’s conversational AI technologies are capable of engaging with users, understanding their needs, assisting them with complex tasks, providing product recommendations, and facilitating transactions. For companies incorporating chatbots into their operations, 30% savings on customer service costs are common, as is improved customer satisfaction. The conversational artificial intelligence market is predicted to grow to USD 49.9 billion by 2030, demonstrating that this will be an increasingly adopted technology in modern consumer service strategies.
Effective communication goes beyond servicing customers; it encompasses crafting content that businesses use to capture the attention of their audience. An example of this is generative artificial intelligence, which is a software application capable of producing digital textual, graphic, and video content without the need for a human writer. Jasper and Copy.ai are AI writing applications geared towards assisting marketers in crafting eye-catching website content, social media posts, and email marketing campaigns. By understanding the preferences of the audience and tracking trends, generative AI techniques can develop effective and highly personalised marketing materials at scale.
This is especially pertinent in today’s fast-paced digital era, where audiences are bombarded with content every second of the day, and people have a constant need for new and innovative ideas. Research suggests, and it is clear, that using AI to assist with communication ensures that operational communication is engaging and strategic. As these tools and applications grow in the global market, companies must learn to balance the need for human input in content creation with the need for human-based content to ensure relevancy. The increasing number of devices around the world signifies the potential of AI to ease and increase productivity.
Creating and delivering content and tailored interactions is only part of the solution. In order to succeed, organisations must be able to determine what clients will want before issues come up. Predictive analytics fit these needs perfectly. This system, which runs on AI, analyses records and identifies patterns regarding consumers' behavior and decisions, which enables proactive measures to be effectively employed.
Predictive analytics is employed by retailers like Walmart, who seek new methods of anticipating demand, optimising stock controls, and designing targeted sales offers. Similarly, predictive models on e-commerce sites, like Amazon, recommend products based on what customers have previously viewed or purchased. It also assists in anticipating which items are likely to be in demand so that businesses, in particular retailers, can be prepared.
Engaging with clients is not limited to social media anymore, as it is possible through real-time communications. While talking with a customer, an AI-powered chat system can make purchasing decisions easier. This way of communication facilitates customers engaging with different brands as they can now be assisted while browsing, receiving suggestions, or even making purchases. Several chats, such as WhatsApp and Facebook Messenger, are already integrated with online shopping services to enable chatting and shopping simultaneously.
Research indicates that 63% of shoppers are predisposed to visit a site that incorporates live chat service. This indicates the significance and benefits of conversational commerce in customer interaction management and loyalty. It is possible to blend customer support and e-commerce interaction to provide a better overall experience for the customer, hence increasing sales.
With AI becoming integral to marketing strategies, its ability to track consumer behavior and preferences in real-time has transformed how brands push targeted campaigns. AI tools now analyze millions of data points—from browsing habits to purchase history—to create highly personalized marketing strategies.
In conclusion, it can be stated that with the development of AI, marketing will become significantly easier for many businesses. However, as AI advances, businesses will need to adapt, innovate, and practice self-regulation. For businesses that are able to meet such self-imposed targets, the advantages will be overwhelming: enhanced customer engagement, improved productivity levels, and strong competitiveness amidst the rapidly evolving commercial marketing strategies.
Authored By Abhilash Madabhushi, Founder, Consuma