AI isn't a goal (or a strategy): The "horizontal" nature of Artificial Intelligence

Let’s face it: AI is here to stay, and despite the hype, it’s really good at a lot of things. However, amidst the fervor for adoption, it’s crucial to remember that AI itself is not the ultimate objective for any marketing strategy. Instead, it serves as a powerful means to achieve broader business goals. So, in this newsletter, we’re going to look at leveraging AI as an augmentative tool rather than an end goal in itself.

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The Horizontal Nature of AI

There are vertical functions within marketing that require unique strategies, specialized tactics, and measurements to determine optimal performance. And then there’s AI, which is what I call a “horizontal” function that works best when it ties the individual areas of marketing and CX, as well as other business functions, and the customer experience together, instead of creating further siloes.

Let’s look at the inherently horizontal nature of AI, emphasizing its role as a cross-functional asset that, when implemented effectively, enhances coordination across marketing, customer experience, customer service, and sales. This integration is not about deploying AI in isolated silos within these functions but about weaving it into the fabric of the organization’s operations to maximize synergy and drive comprehensive business outcomes.

Cross-Functional Data Sharing

Data is the lifeblood of AI systems, feeding them the insights needed to make informed decisions. In traditional setups, data silos severely handicap AI's potential by restricting its access to information, limiting its understanding and predictive capabilities.

For marketing leaders, the significance of cross-functional AI cannot be overstated. When AI can analyze customer data from both marketing campaigns and service interactions, it gains a more holistic view of customer behaviors and preferences. This comprehensive data landscape is crucial not only for tailoring personalized marketing strategies but also for enhancing service delivery and customer satisfaction.

Further, AI's ability to integrate data from sales, supply chain, and product development departments means that marketing initiatives can be more finely tuned to align with overall business objectives. By breaking down these silos, AI fosters a unified approach to customer experience management, ensuring that every touchpoint—from initial marketing contact to post-purchase support—is informed by rich, actionable insights. This not only boosts the effectiveness of marketing campaigns but also amplifies their ROI by synchronizing efforts across the entire enterprise.

For instance, when AI can analyze customer data from both marketing campaigns and service interactions, it gains a more holistic view of customer behaviors and preferences. This comprehensive data landscape is crucial not only for tailoring personalized marketing strategies but also for enhancing service delivery and customer satisfaction.        

Ultimately, the true power of AI in marketing is unlocked when it operates seamlessly across all areas of the business, driving digital transformation and enabling smarter, more sustainable growth strategies.

Enhancing Customer’s Experience

Integrating AI horizontally across multiple business functions significantly improves the overall customer experience. When AI systems are enabled to work across the spectrum—tracking customer interactions from initial marketing contacts through to sales and post-sale services—they can provide consistent and contextually aware recommendations and actions. This seamless experience is what customers today expect; they desire recognition and personalization at every touchpoint with a brand, not just in isolated instances.

AI's true potential is unlocked when it operates cross-functionally, enhancing not just marketing efforts but also every critical area of the business. For instance, AI can analyze customer behavior data to predict future needs and preferences, alerting marketing teams to potential upsell opportunities while informing product development teams about emerging trends. This holistic approach ensures that every department is aligned with a singular vision of customer satisfaction.

For example, AI can suggest relevant products or services to a customer service agent during a live interaction based on previous purchasing history and marketing engagement data, thus enhancing the likelihood of a positive outcome.         

Additionally, AI-driven chatbots can offer immediate support, resolving minor issues and allowing human agents to focus on more complex inquiries. This not only improves efficiency but also elevates the overall customer experience.

Moreover, AI can optimize supply chain operations by predicting demand based on sales and marketing data, ensuring that products are available when and where customers need them. It can also streamline internal processes, such as automating routine tasks in HR and finance, thereby freeing up employees to focus on strategic initiatives that drive growth.

How is your organization using AI? Is it horizontal or vertical? ?? Get our free Using Horizontal AI Checklist here

In the next edition, we'll continue to explore the horizontal nature of AI and how it applies to your work in the enterprise.

Listen to the podcast for more

Until then, get more insights and updates by listening to The Agile Brand with Greg Kihlstr?m podcast.

Stay tuned as we explore more about how to meaningfully incorporate AI into your marketing work and go past the hype. Sign up for this newsletter and you can see more on my website at https://www.gregkihlstrom.com