Drift Automation: https://www.drift.com/automation/?utm_medium=cpc&utm_source=marketing-ai-conference&utm_campaign=chat-2020-MAICON-Sponsorship&utm_content=banner-ad-728-90
Should AI Pilot Projects Focus on Cost Reduction or Revenue Generation?
Blog Feature

By: Paul Roetzer

Print this Page

April 3rd, 2019

Should AI Pilot Projects Focus on Cost Reduction or Revenue Generation?

Editor’s Note: This post originally appeared in the Answering AI editorial section of our newsletter. Subscribe to the newsletter to get exclusive insights and resources twice weekly (usually Tuesday/Thursday), as well as select promotions.

Today’s Question: Should AI Pilot Projects Focus on Cost Reduction or Revenue Generation?

There are two primary reasons you should consider seeking AI-powered solutions in your marketing: 1) reduce costs and/or 2) increase revenue.

You achieve cost reduction by completing repetitive, time-intensive activities more efficiently. For example, using AI to autotag hundreds of images on your website or applying machine learning to manage digital media ad spend.

You increase revenue through more personalized and targeted marketing to existing and new customers. For example, AI can improve audience targeting and content/product recommendations.

For many organizations just starting with marketing AI, cost-saving use cases are likely to be the most logical for gaining early wins and executive support. However, according to an MIT Sloan Management Review and BCG report, “Pioneers prioritize revenue-generating applications over cost-saving ones.”

So, as you’re building your marketing AI strategy, look for the obvious opportunities to drive efficiency and reduce costs with intelligent automation. But start developing the near-term vision for how to use AI to grow revenue through improved customer experience and identification of new markets and opportunities.


Have an AI question you want answered in an upcoming newsletter editorial? Submit your questions and feedback to marketing.ai@pr2020.com.Get free access to the Ultimate Beginner's Guide to AI in Marketing: https://www.marketingaiinstitute.com/beginners-guide-access

About Paul Roetzer

Paul Roetzer (@paulroetzer) is founder and CEO of PR 20/20, author of The Marketing Performance Blueprint and The Marketing Agency Blueprint, and creator of The Marketing Artificial Intelligence Institute and Marketing Score. Full bio.

  • Connect with Paul Roetzer
Disclosure: Marketing AI Institute writes about and recommends AI-powered marketing and sales technology. In all cases, content and recommendations are independent and objective. In some cases, Marketing AI Institute may have business relationships with companies mentioned, which may include financial compensation, affiliate compensation, or payment in kind for products or services. View a list of Institute partners here and MAICON sponsors here.