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Artificial Intelligence: The Future of Advertising?

Marketers and advertisers alike are beginning to tap into AI’s potential as a tool used to improve the effectiveness of campaigns, but understanding of its capacity remains partial. In the linked article, Kerry Liu, CEO of Rubikloud explores the benefits of AI for advertisers and how intelligent tech will make or break the future of digital advertising.

So, what are the real benefits of AI in this field? 

  • Use of AI-powered analytics - enabling forecast trends to be more easily identified  and businesses to then prepare accordingly. 
  • AI platforms to govern price changes - not only this but to fix stock-outs, decide on the timing/cost of promotions, all in a bid to increase sales and productivity
  • AI to streamline decision-making - automation of routine tasks, and again improving the traditional retail and advertising methods to increase productivity.

A good example is Waston Ads, who earlier this year jumped ahead of the pack. Waston Ads employs AI in its advertising format which was used by Toyota to introduce their new plug-in hybrid Prius model. The adverts allowed users to have a two-way symmetric conversation with the brand - asking about features and the new model offerings. 

And as always, my final thoughts on the topic lead back to being weary of potentials pitfalls of AI. While it’s tempting to see AI as a solution to all the issues of digital advertising, there is an awareness that irrelevant use of AI or bots that pretending to be human will irritate consumers. All in all (or, all in AI) this means advertisers/marketers will need to employ AI transparently enough to only further enhances the user experience is vital.

AI helps satisfy all parties. Customers are happy because they can purchase the product they want when they want it. The manager is happy because the store accommodates demand without having to deal with an overstock situation. And the organization is happy because it can increase revenue without incurring the costs of unsold inventory. Considering advancements in technology and increasing demands from consumers, there is no way a business can keep up without help from AI. Implementation of artificial intelligence is especially important during this “do or die” moment when Amazon and Walmart are monopolizing the industry. Simply put, retailers need to integrate AI and machine learning into their systems if they want to survive past this holiday season.

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