Key takeaways from this article:

  • Understanding the Significance of Artificial Intelligence in the Modern Market.
  • Understanding the transformation in marketing tactics due to AI.
  • Generative AI is generating the interest of the audience towards the product and service.
  • Ways in which AI is helping brands to create a social media presence.

What is AI Marketing?

Artificial intelligence is a set of algorithms and statistical data which helps in doing AI marketing which is growing to be an ultimate differentiator among different brands in the market. Artificial Intelligence involves different technologies to perform tasks and make the process highly agile through advanced computing. There are multiple developments such as neural networks, machine learning etc which are the part of AI umbrella.  Artificial Intelligence is the product of making things convenient and fast for humans themselves. The tasks performed through AI require human intelligence to be completed such as learning, perception, decision-making, problem- solving and natural language processing.

Artificial Intelligence is not only limited to some sectors but is applied in multiple industries such as entertainment, finance, transportation, and healthcare. Out of each sector, Artificial Intelligence is showing phenomenal results in the marketing field where brands are using it as an extensive tool to discover trends in the market and know your customer in a better way. Some of the popular AI technologies involve computer vision, deep learning, machine learning, natural language processing etc.

Artificial Intelligence is a new era. According to statistics 90% of MNCs and SMEs are developing a separate functional unit within their firm which will work on Artificial intelligence and will research it. The end goal of any business is to acquire customers or close a deal. Now, the customer can be a business itself, an individual customer, a government, etc. Therefore, firms believe that using AI in marketing can help them in serving customers what they want. Why do they want? And how do they want? Therefore, firms are switching to AI marketing whereas the first step of any marketing process is now to research the market through different AI tools.

AI marketing is a rapidly growing field that uses artificial intelligence to enhance and streamline marketing strategies. With AI, marketers can analyze vast amounts of data and gain insights into consumer behavior, preferences, and buying patterns. This allows them to create personalized and targeted marketing campaigns that are more effective in driving conversions and building customer loyalty. One of the key advantages of AI marketing is its ability to automate routine tasks, such as email marketing, social media advertising, and content creation. This frees up marketers’ time to focus on more strategic tasks, such as developing new campaigns and analyzing data.

Generative AI

Another way to set a customer base is generative AI which is a subset of AI. Generative AI refers to a subset of artificial intelligence that uses algorithms to create or generate new content, such as images, text, music, and videos, that resemble human-made content. Unlike other AI approaches that rely on data analysis and pattern recognition, generative AI models are designed to learn from existing data and then generate new content that is not explicitly programmed into the system. These models are typically based on deep-learning neural networks that use probabilistic models to generate new content. Generative AI has many applications, such as creating new product designs, generating realistic visual effects, and creating natural language conversations.

Generative AI and AI itself combine to do AI marketing. Another benefit of AI marketing is its ability to deliver real-time insights that enable marketers to respond quickly to changing market conditions and consumer trends. By using AI-powered analytics tools, marketers can track customer engagement and make data-driven decisions about their marketing campaigns. Moreover, AI marketing can also help businesses optimize their marketing spending by identifying the most effective marketing channels and tactics for reaching their target audience. This can lead to higher ROI and more efficient use of marketing resources. Overall, AI marketing is an innovative and effective approach to marketing that is transforming the way businesses interact with their customers. By leveraging the power of AI, marketers can gain new insights into their customers’ behaviour, improve their marketing strategies, and drive better business outcomes.

Reasons why AI is growing in the modern market

Personalization: With AI, businesses can collect and analyze large amounts of data to better understand their customers’ needs and preferences. Generative AI provides personalised content to customers.  This allows them to offer personalized experiences and tailor their products and services to individual customers, leading to greater customer satisfaction and loyalty.

Automation: AI-powered automation can streamline business processes, reduce costs, and increase efficiency. This can lead to faster delivery of products and services, lower operational costs, and improved customer experiences. Generative AI automatically develops such content for AI Marketing.

Data Analysis: AI can quickly analyze vast amounts of data and provide insights that are difficult or impossible for humans to discover on their own. This enables businesses to make data-driven decisions that are more accurate and effective.

Predictive Analytics: AI can help businesses predict future trends and behaviours by analyzing historical data and identifying patterns. This enables businesses to make better decisions, improve their products and services, and stay ahead of their competition.

Improved Customer Service: AI-powered chatbots and virtual assistants can provide 24/7 customer service, answering questions and resolving issues quickly and efficiently. This leads to improved customer satisfaction and can help businesses build stronger relationships with their customers.

As AI technology continues to evolve and improve, it is expected to play an even greater role in shaping the future of business and polishing tactics for AI marketing.

Ways in which AI is creating a difference for small and medium brands.

Cost-effective marketing: AI-powered tools can help small brands target their marketing efforts more efficiently, resulting in cost savings. By automating certain marketing tasks and using predictive analytics to identify the most effective channels and tactics, small brands can optimize their marketing spending.

Personalization: AI can help small brands provide personalized experiences to their customers, which is essential for building strong relationships and fostering customer loyalty. For example, small brands can use AI-powered chatbots to interact with customers and provide personalized recommendations.

Competitive Advantage: AI can help small brands gain a competitive advantage by providing insights and analytics that are typically only available to larger brands. This can help small brands identify market trends and consumer behaviour, enabling them to make data-driven decisions.

Improved Customer Service: AI-powered chatbots can provide 24/7 customer support, which can be especially beneficial for small brands that may not have the resources to provide round-the-clock support.

Efficiency: By automating certain tasks and processes, AI can help small brands operate more efficiently and effectively. This can lead to improved productivity, faster delivery of products and services, and better customer experiences.

AI can be a valuable tool for small brands looking to improve their marketing efforts, provide better customer experiences, and gain a competitive advantage. As AI technology continues to evolve and become more accessible, we can expect more small brands to leverage AI to grow their businesses.

Big Brands Using AI in their marketing strategies

Brands are increasingly turning to AI to optimize their marketing strategies and stay ahead of the competition. One way brands are using AI is through personalization. With AI, brands can analyze customer data to gain insights into consumer behaviour and preferences, enabling them to deliver highly personalized content and messaging. This leads to higher engagement and customer loyalty, ultimately driving revenue growth. Another way brands are using AI is through chatbots and virtual assistants. These AI-powered tools can handle routine tasks, such as customer support, order tracking, and product recommendations, freeing up time for employees to focus on more strategic activities.

Brands can also use AI for predictive analytics, which allows them to anticipate customer needs and identify trends in real-time. This leads to more effective marketing campaigns and better product development. Finally, AI can be used for fraud detection and prevention, enabling brands to protect their reputation and save money by detecting fraudulent activity in real-time. Overall, AI provides brands with powerful tools to improve customer experiences, increase efficiency, and drive revenue growth.

examples of the actions big brands are taking towards AI marketing:

Big brands are using AI to personalize customer experiences across various channels, such as email, social media, and websites. For example, Netflix uses AI to personalize content recommendations for its users based on their viewing history.

Many big brands are implementing AI-powered chatbots to provide customer support and handle routine tasks, such as order tracking and returns. For instance, H&M uses a chatbot called “Sara” to assist customers with fashion advice and outfit suggestions.

Big brands are using AI to analyze large amounts of customer data to gain insights into consumer behaviour, preferences, and buying patterns. For example, Amazon uses AI to analyze customer data to predict which products customers are likely to buy and suggest them to the customer.

Big brands are developing voice-activated assistants that can provide personalized recommendations and assistance. For example, Starbucks has integrated its app with Amazon’s Alexa, allowing customers to place orders using voice commands.

Big brands are using AI-powered predictive analytics to anticipate customer needs and improve customer experiences. For instance, American Express uses AI to predict which customers are likely to churn and offer them targeted incentives to retain them.

Some of the AI marketing solutions which are widely used in marketing involve:

Natural Language Processing (NLP): NLP enables machines to understand and interpret human language, which can be used for sentiment analysis, customer feedback, and social media monitoring. This provides marketers with insights into customer opinions and behaviour, enabling them to adjust their campaigns accordingly.

Image and Video Recognition: AI-powered image and video recognition tools can analyze and tag visual content, enabling marketers to identify relevant trends and create more targeted campaigns.

Chatbots and Virtual Assistants: AI-powered chatbots and virtual assistants can handle routine tasks such as customer support and order tracking, freeing up time for marketers to focus on more strategic activities.

Recommendation Engines: Recommendation engines use AI algorithms to analyze customer behaviour and recommend products or services that they are likely to be interested in. This leads to higher conversion rates and improved customer experiences.

AI marketing solutions provide marketers with powerful tools to optimize their campaigns, improve customer experiences, and drive revenue growth. As AI technology continues to evolve, we can expect more innovative AI marketing solutions to emerge, enabling marketers to stay ahead of the competition and meet evolving customer expectations.

Examples of brands and their involvement with AI:

Fashion AI store of Alibaba:

The FashionAI store, launched by Alibaba’s fashion retail platform Tmall, is a concept store that uses AI technology to enhance the customer shopping experience. The store, which opened in 2018, is in Hangzhou, China, and offers a range of products from fashion and beauty to home goods.

One of the key features of the FashionAI store is the use of smart mirrors, which are equipped with facial recognition technology and AI algorithms that enable personalized recommendations based on the customer’s age, gender, and previous purchases. These mirrors also enable customers to virtually try on clothing and makeup and make recommendations based on their preferences.

Another feature of the store is the use of RFID technology, which enables customers to scan items and receive real-time information about the product, such as its price, materials, and available colours and sizes.

Sephora Chatbots:

Sephora, the cosmetics and beauty retailer, has integrated chatbots into its marketing strategy to enhance customer engagement and provide personalized recommendations. The chatbots are available through various messaging platforms, such as Facebook Messenger, Kik, and WeChat.

One of the key features of the Sephora chatbots is that they can help customers find the right products based on their preferences and needs. Customers can provide information such as skin type, colour preferences, and style, and the chatbot will recommend products that are tailored to their needs. This personalized experience helps customers feel more connected to the brand and can lead to increased customer loyalty.

The Sephora chatbots also provide customers with beauty tips and tutorials, such as how to apply makeup and skincare products. This content not only helps customers make informed purchasing decisions but also establishes Sephora as a trusted authority in the beauty industry.

Another advantage of the Sephora chatbots is that they are available 24/7, which means that customers can get assistance and recommendations at any time, even when the physical stores are closed. This can improve the customer experience and lead to increased sales for the company.

Overall, the Sephora chatbots are an innovative way to use AI and chatbot technology to enhance the customer experience and provide personalized recommendations. By leveraging this technology, Sephora has engaged customers on multiple platforms, provided relevant content and recommendations, and increased customer loyalty.

Rupam Sharma

Content writer

Anamika Patil

Graphic designer

Sonali Singh



  1. I do agree with all the ideas you have introduced on your post They are very convincing and will definitely work Still the posts are very short for newbies May just you please prolong them a little from subsequent time Thank you for the post

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