Gen AI secures marketing budgets

Almost two thirds of marketing campaign budgets are being allocated to generative AI, a report has claimed.

Gen AI and the evolving role of marketing, A CMO’s Playbook, by Capgemini Research Institute, reported 62% of budgets are allocated to the technology within campaigns.

“Generative AI is not just another buzzword; its tangible impact is becoming increasingly apparent and is poised to grow significantly,” David Hirsch, general manager of marketing at QBE Insurance, commented.

“Marketers have only begun to explore its potential, and it presents a significant opportunity.

However, it also comes with risks; understanding how to harness this technology effectively and without detriment to customers is key to staying ahead,” he said.

These investments are aiming to improve the creative process, refining tasks like thinking beyond conventional boundaries, the report claimed.

Rupert Bedell, chief marketing officer at Paysend, said the quality of creative content will be revolutionised by generative AI investments.

“We’re delving into generative AI for video production, a domain where we typically engaged external video production agencies,” said Bedell.

“It crafts exceptionally high-quality custom videos, even achieving cinematic standards. This opens up exciting possibilities for our creative endeavours.”

Some 57% of marketers place generative AI as a foundation in their creative process, with 54% using it to clarify ideas generated by teams.

Some 55% used it for automating processes. The generative AI era is already changing how marketers produce content; however, the report also indicates that they also see its limitations.

A third (33%) predict human creativity will be augmented, while just 19% foreseeing that gen AI will completely replace it.

However, although the usage of AI has increased, just 30% of the sample reported the adoption of ethical frameworks and guidelines for its usage.

A lack of guidelines around AI is an indicator of why the 32% of companies budgeting for AI are not reporting ethical frameworks, the report said.

This article is taken from the Winter 2024 print edition of Financial Promoter. Click here to subscribe.