How artificial intelligence will change the future of marketing

How artificial intelligence will change the future of marketing

Published online: 10 October 2019 | Thomas Davenport 1 · Abhijit Guha 2 · Dhruv Grewal 3 · Timna Bressgott 4
The article "How Artificial Intelligence Will Change the Future of Marketing" by Thomas Davenport, Abhijit Guha, Dhruv Grewal, and Timna Bressgott explores the significant impact of artificial intelligence (AI) on marketing strategies and customer behaviors. The authors propose a multidimensional framework to understand the effects of AI, considering levels of intelligence, task types, and whether AI is embedded in robots. They argue that AI will be more effective when it augments human managers rather than replacing them. The paper discusses three illustrative cases from diverse industries to highlight the potential changes brought by AI: 1. **Transportation**: Driverless cars will alter business models and customer behavior, affecting insurance, real estate, and commuting times. 2. **Sales Processes**: AI agents will assist salespeople in real-time conversations, providing feedback to guide their approach. AI bots may also replace human salespeople in initial contact with prospects. 3. **Business Models**: Online retailers may transition from a shopping-then-shopping model to a shipping-then-shopping model, using AI to predict and ship products based on customer preferences. The authors also address the challenges and concerns associated with AI, such as data privacy, algorithmic biases, and ethics. They emphasize the need for marketing researchers to integrate insights from psychology, economics, and other social sciences to study AI's impact on marketing strategies and customer behaviors. The paper concludes with a research agenda that focuses on how AI will affect marketing strategies, customer behaviors, and policy questions related to privacy, bias, and ethics. It suggests that AI will enhance predictive abilities, influence pricing and promotions, and transform sales processes and innovation cycles. The authors also highlight the importance of realistic expectations about AI's evolution and the need for firms to develop strategies to mitigate customer concerns about AI adoption.The article "How Artificial Intelligence Will Change the Future of Marketing" by Thomas Davenport, Abhijit Guha, Dhruv Grewal, and Timna Bressgott explores the significant impact of artificial intelligence (AI) on marketing strategies and customer behaviors. The authors propose a multidimensional framework to understand the effects of AI, considering levels of intelligence, task types, and whether AI is embedded in robots. They argue that AI will be more effective when it augments human managers rather than replacing them. The paper discusses three illustrative cases from diverse industries to highlight the potential changes brought by AI: 1. **Transportation**: Driverless cars will alter business models and customer behavior, affecting insurance, real estate, and commuting times. 2. **Sales Processes**: AI agents will assist salespeople in real-time conversations, providing feedback to guide their approach. AI bots may also replace human salespeople in initial contact with prospects. 3. **Business Models**: Online retailers may transition from a shopping-then-shopping model to a shipping-then-shopping model, using AI to predict and ship products based on customer preferences. The authors also address the challenges and concerns associated with AI, such as data privacy, algorithmic biases, and ethics. They emphasize the need for marketing researchers to integrate insights from psychology, economics, and other social sciences to study AI's impact on marketing strategies and customer behaviors. The paper concludes with a research agenda that focuses on how AI will affect marketing strategies, customer behaviors, and policy questions related to privacy, bias, and ethics. It suggests that AI will enhance predictive abilities, influence pricing and promotions, and transform sales processes and innovation cycles. The authors also highlight the importance of realistic expectations about AI's evolution and the need for firms to develop strategies to mitigate customer concerns about AI adoption.
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