The Ultimate Beginner's Guide to AI in Marketing
This guide will help you understand AI and how to use it in your marketing—fast.
Research On AI
Why would you want to spend a bunch of time combing through research reports on AI? You don’t. That’s what this section is for—to save you the pain of reading hundreds of pages of reports. (We’ve done that, and it’s not pretty…)
Seriously, though, there are a number of projections and estimates you need to know if you’re going to convince bosses, colleagues, and stakeholders that AI is the real deal. Because the disruptive opportunity presented by AI is almost too big to be believed—until you put it in numbers. Take a look at the report summaries below (with links to the full reports). In just a few minutes, you’ll have a better idea of why we’re so excited about AI in marketing.
Thriving in the Era of Pervasive AI | Deloitte’s State of AI in the Enterprise, 3rd Edition
Each year, Deloitte's State of AI in the Enterprise report surveys executives about their companies’ AI sentiments and practices to gauge the global pulse on AI. This year's focus was on how to stay ahead of the pack as AI adoption grows. Here are a few of the key takeaways: Adopters continue to have confidence in AI technologies’ ability to drive value and advantage. Early-mover advantage may fade soon. Virtually all adopters are using AI to improve efficiency; mature adopters are also harnessing the technologies to boost differentiation. AI adopters tend to buy more than they build, and they see having the best AI technology as key to competitive advantage. Adopters recognize AI’s risks, but a “preparedness gap” spans strategic, operational, and ethical risks.You can read more about the findings at the link below.
The Rise of the AI-Powered Company in the Postcrisis World
Similar to past crises, COVID-19 will likely greatly accelerate certain trends that were underway before the breakout. And, according to Boston Consulting Group, companies utilizing AI will be better able to adapt to these trends.In fact, during the past four global economic downturns, companies already on their AI journey were able to increase both sales growth and profit margins. Companies that prioritize implementing AI into the core of its business, especially as it relates to value chain redundancy, shifting consumption patterns, and remote ways of working, will come out on top of the pandemic and its aftermath.
Artificial Intelligence Index Report 2019
AI leaders from MIT, Stanford University, Harvard University, OpenAI, McKinsey Global Institute, Partnership On AI and SRI International came together to research and examine some of the biggest trends shaping the AI industry. As a follow-up to the 2018 report, this report's key highlights include: Globally, investment in AI startups continues its steady ascent. From a total of $1.3B raised in 2010 to over $40.4B in 2018 (with $37.4B in 2019 as of November 4th), funding has increased at an average annual growth rate of over 48%. Autonomous Vehicles (AVs) received the largest share of global investment over the last year with $7.7B (9.9% of the total). 58% of large companies surveyed report adopting AI in at least one function or business unit in 2019, up from 47% in 2018. In the US, the share of jobs in AI-related topics increased from 0.26% of total jobs posted in 2010 to 1.32% in October 2019, with the highest share in Machine Learning (0.51% of total jobs). AI labor demand is growing especially in high-tech services and the manufacturing sector. Enrollment continues to grow rapidly in AI and related subjects, both at traditional universities in the US and internationally, and in online offerings.At the graduate level, AI has rapidly become the most popular specialization among computer science PhD students in North America, with over twice as many students as the second most popular specialization (security/information assurance). In 2018, over 21% of graduating Computer Science PhDs specialize in Artificial Intelligence/Machine Learning.
Funding for AI-Powered Sales and Marketing Companies Exceeds $5.2 Billion
According to our analysis of Crunchbase data, there are 1,141 companies that fit into the category groups of both “Sales and Marketing” and “Artificial Intelligence.” These are predominantly software companies selling sales and marketing solutions, of which 488* have raised funding totaling more than $5.2 billion (in USD). Let’s dig into the data on these 488 funded companies to see what else we can learn: 2018 Funding: 147 companies raised funding in 2018 totaling $1.07 billion. Categories: The most common categories within the Sales and Marketing group are: advertising (141 companies), predictive analytics (130 companies), marketing automation (119 companies), digital marketing (74 companies), CRM (64 companies), mobile (48 companies), sales automation (48 companies), e-commerce (42 companies), brand marketing (37 companies), and social media marketing (33 companies). Headquarters: San Francisco is the most popular headquarters with 54 companies calling it home. Those SF-based companies have raised $978 million. New York is second with 47 companies at $610 million and London is third with 40 companies at $352 million. Paris is a distant fourth with 14 companies at $145 million. Status: Of the 488 companies, 57 have been acquired and eight have held an initial public offering (IPO). Employees: 11-50 employees is the most common range at 46.9% of companies. 1-10 is next at 30.1% of companies. Only 10.9% companies have 101+ employees. Founding Year: 2018 saw a significant drop in number of AI-powered sales and marketing companies founded with only 13, raising a combined $8.6 million. This was down from 49 companies founded in 2017, which have raised $71.2 million to date. 2014 and 2015 were the peak years for AI-powered startups with 67 companies being founded in each of the years. Funding Rounds: The companies have 1,303 combined funding rounds for an average of 2.7.Distribution of Funding: 111 companies have raised $10 million or more. 56 companies have raised $25 million or more. 27 companies have raised $50 million or more. Six companies have raised $100 million or more.
AI Will Unlock $2.6 Trillion in Value for Marketing and Sales
There’s been a lot of hype around the impact artificial intelligence will have on different industries, especially marketing. Luckily, McKinsey’s quarterly Five Fifty study, “Real-World AI,” cut through the hype and put some actual numbers (big numbers!) behind these claims.According to McKinsey, AI’s application to real-world business problems extends across nearly every sector of the economy, but the biggest impact could arise in two particular business functions: marketing and sales, and supply-chain management and manufacturing. McKinsey predicts there is $2.6 trillion (yes, trillion) of potential value to be unlocked by AI applications in the marketing and sales sectors alone. Supply-chain management and manufacturing follow right behind at $2 trillion.
Businesses Need to Get Real About AI—Now
A research project from MIT Sloan Management Review and The Boston Consulting Group (BCG) analyzed AI adoption based on a global survey of 3,076 business executives. The report—Artificial Intelligence in Business Gets Real: Pioneering Companies Aim for AI Scale—broke responding companies into four groups: Pioneers (18%): Organizations that both understand and have adopted AI. These organizations are on the leading edge of incorporating AI into both their offerings and internal processes. Investigators (33%): Organizations that understand AI but are not deploying it beyond the pilot stage. Their investigation into what AI may offer emphasizes looking before leaping. Experimenters (16%): Organizations that are piloting or adopting AI without deep understanding. These organizations are learning by doing. Passives (34%): Organizations with no adoption or much understanding of AI. No matter how you look at it, businesses are in the infancy of AI adoption, meaning you and your organization have the opportunity now to be proactive in advancing knowledge and capabilities before your competitors beat you to it. According to the report, “Pioneers, by deepening their commitments to AI, are establishing positions in both customer and labor markets that may make it hard for others to draft off of their hard work. The many advantages reported by Pioneers suggest that early AI movers may be especially hard to catch.”
C-Suite Support for AI Leads to Massive Profits
Another report, from the McKinsey Global Institute, surveyed over 3,000 AI-aware C-level executives from across 14 industries and 10 countries. Few companies researchers spoke to, outside of the tech sector, have actually deployed AI at scale: Only 20% said they use any AI-related technology at scale or in a core part of their business. And, upon reviewing more than 160 use cases, researchers found AI was only deployed commercially about 12% of the time. That said, the companies that moved past the uncertainty and seriously invested in AI saw real results. Those who combined an already strong digital foundation with proactive strategies saw massive increases in profit margin, and the performance gap between them and the AI laggards will continue to grow. According to the report, “Respondents from firms that have successfully deployed an AI technology at scale tended to rate C-suite support nearly twice as high as those from companies that had not adopted any AI technology.”