CMOs Embrace the Power of GenAI: Optimism and Confidence for the Future

The hype surrounding generative AI (GenAI) is now being matched by its reality, and it is poised to have a profound impact on marketers and the field of marketing. Several surveys conducted between March and April 2023 involved interviewing over 200 CMOs from diverse sectors in North America, Europe, and Asia.

The findings indicated that CMOs globally hold a positive and confident outlook regarding the future prospects of GenAI in terms of boosting productivity and gaining a competitive edge.

The rapid rise of large language models (LLMs) like ChatGPT, which crossed the 100 million user mark in just two months, has contributed to this optimism.

GenAI is already being widely adopted, with 70% of respondents indicating that their organizations are already using it, and an additional 19% currently testing it.

Applications of GenAI in marketing include content generation, insight generation, and market segmentation, with a particular focus on personalization efforts.

Three key areas that CMOs are exploring with GenAI are personalization, content creation, and market segmentation. Personalization efforts involve using GenAI to analyze customer data and offer personalized recommendations or advice. Content creation benefits from GenAI's ability to generate content quickly and with higher quality, enabling marketers to explore new ideas and inspire creativity. Market segmentation, on the other hand, allows CMOs to target customers more precisely and improve resource allocation and return on investment.

The survey findings confirm that GenAI is delivering positive results for CMOs. A significant majority, 93%, reported a positive or very positive improvement in how they organize their work, while 91% experienced a positive or very positive impact on efficiency. Our observations suggest that GenAI can yield productivity gains of up to 30%, thanks to its low cost and ease of use.

While the focus has mainly been on process improvements, CMOs recognize the potential of GenAI to revolutionize marketing operations. It can reduce the time spent on tedious tasks and free up more time for value-added work.

CMOs now have the opportunity to optimize talent, headcount, and external relationships by leveraging GenAI's enhanced productivity and creativity. Additionally, GenAI is seen as a facilitator for launching new products and business models, with half of the CMOs identifying it as a tool to achieve both objectives simultaneously.

Inaction is not an option for companies, as the speed of deriving benefits from GenAI can create a significant divide within industries. Successful implementation of GenAI allows companies to acquire, serve, and retain customers more effectively. It is crucial for senior leaders, including CMOs, to immerse themselves in exploring the capabilities of this technology firsthand. They should encourage their teams to identify valuable applications, experiment with models, and build transformative use cases. Creating cross-functional agile marketing pods can facilitate this process, where GenAI plays a central role.

CMOs should strive for game-changing outcomes and seek step-change gains in productivity through innovative and disruptive approaches. Identifying "golden" use cases that leverage core data and IP assets uniquely will give companies a competitive edge. It is essential to establish an enterprise-wide model that integrates suitable GenAI solutions, as scale and competitive advantage rely on the right solution and architecture.

Implementing responsible AI guidelines is critical to ensure ethical use and transformative business impact. Incentivizing experimentation with GenAI while mitigating risks allows organizations to achieve productivity gains and align with widely.