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Everything you need to know about AI in Marketing | Engati

Engati Team
last edited on
April 23, 2024
8-9 mins

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AI in marketing

All it takes is a text.

Excited for her sister’s wedding, Sam was looking for dresses online. She browsed several brand pages but couldn’t settle on one design.

A few days later, Sam received an exciting text- it was from one of those many brands, that curated picks just for her from their latest collection, along with a 10% off coupon.

Sam clicked, liked what she saw and purchased it. She saved her time, energy and some of her money, while the brand scored another order.

This is just one of the many ways AI proves helpful in marketing- from personalised recommendations to creating content for marketing messages; AI keeps both you and your customers content.

In fact, the value of artificial intelligence in marketing is expected to increase to more than $107.5 billion by 2028, and for good reason.

In this blog, we’ll tackle precisely this reason- how AI has transformed marketing, and suggest how you can implement AI marketing today.

What is AI in marketing?

AI in marketing refers to the advanced approach of using artificial intelligence (AI) in marketing to automate, optimise, and improve elements of the marketing procedure and process.

You can also leverage AI to make more informed and data-driven decisions through the insights AI marketing gathers through its data collection, hence improving overall marketing.

How is AI used in marketing?

You've likely encountered several examples of Artificial Intelligence in marketing without even realising it!

Receiving product recommendations just for you from an online retailer based on your previous purchases or browsing history is a common example of AI marketing. Apart from that, AI is also used to optimise search results, enable visual and voice searches, and create dynamic content that changes based on the viewer.

This is just one example of how AI is transforming the marketing landscape, creating more engaging and personalised experiences for customers.

Next time you encounter a personalised recommendation or engage with a chatbot, know that you're experiencing cutting-edge AI marketing!

9 Ways AI Marketing can help your business (with examples)

Now we know what AI marketing means, let’s get into how business use AI marketing in 2023 along with examples:


1. Generative AI

With OpenAI’s ChatGPT in the picture, it is needless to say that AI has transformed the way marketers produce content.

AI-generated content can include anything from product descriptions and social media posts to news articles and reports. This rapidly improving ability to generate content and analyze data, including trending topics and other relevant information, empowers marketers to produce high-quality content at scale. Additionally, AI-generated content can be customised to suit different platforms and audiences, improving engagement and boosting conversions.

A study by Gartner predicts that by 2024, AI-generated content will account for 30% of the total content produced by enterprises. By automating content creation, companies can save time and resources, allowing their marketing teams to focus on higher-level strategic initiatives.

2. Hyper-personalized marketing

A study by Epsilon found that personalised emails had a 29% higher open rate and 41% higher click-through rate than non-personalized emails. So why not utilise AI’s ability to personalise content in marketing?


In fact, a study by Epsilon found that personalised emails had a 29% higher open rate and 41% higher click-through rate than non-personalized emails.

For more helpful statistics as the above refer here - Digital Marketing Statistics to help skyrocket 2024

3. Predictive analytics

AI-powered predictive analytics can analyse customer data to forecast future trends, identify patterns, and make data-driven decisions. This helps marketers optimise campaigns, identify new opportunities, and adapt to changing customer behaviour. 

According to a study by McKinsey, companies that use predictive analytics are twice as likely to be in the top quartile of financial performance within their industry.

4. Enhanced customer experience

AI-powered chatbots can provide personalised and efficient, 24/7 real-time customer support through natural language processing, allowing them to understand and respond to customer queries and requests. 

Additionally, interactive content created using AI, such as quizzes and surveys, can engage customers and enhance their overall experience. These tools are used to gather customer feedback and insights, which are then used to improve products and services. Here is how an Engati bot is deployed, to enhance the customer experience by answering queries in real time.


In fact, a study by Salesforce found that almost 90% of customers said that the experience a company provides is just as important as its products or services.

5. Voice search optimisation

Optimising content for voice search is becoming increasingly important as more people use voice assistants such as Siri, Alexa, and Google Assistant to search for information. 

By leveraging AI-powered natural language processing, marketers can create content that allows them to connect with customers through this emerging channel. This can include strategies such as targeting long-tail keywords and optimising content for featured snippets.

AI enhances social media targeting and allows marketers to analyse customer data and create targeted campaigns. By identifying customer preferences, interests, and behaviors, marketers can create content that resonates with their target audience, increasing engagement and conversions.

AI can also be used to automate social listening, social media scheduling and posting, saving time and resources for marketing teams.

6. Augmented reality

AR technology enables marketers to create immersive experiences that blend the physical and digital worlds. This enhances the customer experience by allowing customers to visualise products in their own environment before making a purchase. 

Using Augmented reality for marketing gives customers the personalised experience that online shopping always lacked and increases the chances of making a sale drastically. Here is an example of the bot showing product catalog options based on the buyer’s previous purchases.


In fact, a study by Deloitte states that 88% of medium-sized businesses are already using or testing AR for some purposes.

7. Feedback analysis

By using AI-powered sentiment analysis, marketers can analyse customer feedback and online mentions to understand how customers feel about their brand and products. This information can help marketers identify pain points, improve their products and services, and tailor their marketing campaigns to better resonate with customers. 

AI can also be used to monitor social media conversations in real time, allowing companies to quickly respond to customer feedback and concerns.

8. Fraud detection

AI-powered fraud detection can detect and prevent fraud in e-commerce transactions, protecting both businesses and customers. By analysing customer data and transaction patterns, AI can detect suspicious behaviour and prevent fraudulent transactions

This can include strategies such as monitoring for unusual transaction patterns and identifying suspicious IP addresses. In fact, a study by Juniper Research predicts that AI-powered fraud detection will save retailers $12 billion by 2023.

9. WhatsApp Chatbots

WhatsApp is the future of digital marketing and commerce, and getting a WhatsApp chatbot is the smartest investment you can make for your company's digital marketing. From covering broadcast newsletters, abandoned carts and shipping updates to Whatsapp commerce and personalised customer support, having chatbots powered by AI can help enhance the entire WhatsApp marketing and selling experience. 

Customers can get quick and personalised responses to their inquiries, and companies can reduce customer service costs and increase efficiency. In fact, WhatsApp has highest open rate, making it the most effective channel for companies to connect with customers. Here is an example of how the Mom Store has deployed a WhatsApp Chatbot to assist their customers better.


Today, we have come to a point where Marketing Agencies are becoming chatbot resellers and providing AI support to their clients for the complete experience.

You can’t be left behind in this competition

So if everyone is doing it, how do you excel in the same game?

We got you! Introducing Engati’s new eSense GPT, a GPT-based Generative AI engine built on Large Language Models (LLM) for customers.

This AI-based software solution has been launched thanks to Open AI’s GPT models and can summarise and transcribe conversations and provide smart responses to help agents improve efficiency.

This suggestive, generative feature of artificial intelligence, along with our long-standing conversational chatbot technology, is the answer to your business’s marketing success.

And the best part is, you do not have to take my word for it.

Just Schedule a Demo and find out for yourself.

What are the different types of AI in marketing?

There are mainly four different types of AI in Marketing

Source: Harvard Business Review

1.Task Automation

With the help of predefined sequences or rules, these applications can automate your repetitive and structured tasks. Welcome emails are an example of task automation.

2. Machine Learning

Machine learning algorithms can grasp the data in order to make complex decisions and even predictions. They can decipher texts, recognise images, segment customers, and generate responses. Machine learning helps create a personalized marketing experience.

3. Integrated Applications 

AI's ability to analyse vast amounts of data and create individualised experiences allows companies to create personalised marketing messages. By leveraging customer data such as past purchases, browsing behaviour, and demographics, marketers can target specific audiences and create personalised campaigns. Here’s how an Engati bot is used to send personalized texts as a part of a Marketing campaign to reduce Cart Abandonment.

4. Stand-alone Applications

Stand-alone applications are separate AI programs that function outside the main customer or employee channels. Therefore, users need to interact separately with them.

Our top 5 AI marketing tools that’ll help your marketing strategy

1. Engati: Engati is a conversational AI platform that uses natural language processing and machine learning to provide personalised customer experiences. It can integrate with and stitch conversations from multiple messaging platforms, making it a versatile tool for businesses from any industry looking to implement AI-powered chatbots into their marketing strategies.

2. WriteSonic: WriteSonic is an AI-powered copywriting tool that can generate compelling marketing copy for businesses.It can turn text-based content into engaging video content, making it a useful tool to create video content quickly and efficiently.

3. Lumen5: Lumen5 is a video creation platform that uses AI to automate the video creation process.It can create blog posts, ad copy, product descriptions, and more, making it a versatile tool to streamline the content creation process.

4. Copy.Ai: Copy.Ai is an AI-powered copywriting tool that uses natural language processing to generate high-quality content. It can create blog posts, ad copy, product descriptions, and more, making it a versatile tool for businesses looking to streamline their content creation process.

5. Hootsuite Insights: Hootsuite Insights is a social media analytics tool that uses AI to provide insights into customer behaviour and engagement.  It can track mentions, sentiment, and engagement across multiple social media platforms, making it a valuable tool to understand your audience and optimise  a social media strategy.

Bonus Content - Martech Stack Tools to enhance your maketing strategies.

What are the challenges faced by AI Marketing?

While AI marketing has a lot of benefits, it also has its own challenges. Two of the major challenges faced are as follows-

1. Accuracy & integrity of data- One of the major challenges of AI marketing is ensuring the accuracy and integrity of the data. AI algorithms completely rely on data to make predictions and decisions. If the data provided is biased or incomplete, that can cause the results to be inaccurate which in turn would make the marketing strategies flawed.  

2. Unethical use of AI in Marketing- Another challenge faced by AI marketing is the unethical use of AI in marketing. AI technology is growing continuously, thus it is necessary that this technology is used ethically and responsibly, by respecting the user’s privacy. It is essential for businesses to be transparent about how they use AI and ask for consent before collecting and analysing the customer’s data.

What are some benefits of using AI marketing?

AI has transformed the marketing industry like no other, and the benefits are truly incredible. Here are some of the main benefits of using AI for marketing:


1. Personalised Content

AI can analyse large volumes of customer data to identify patterns and make recommendations on how to personalise content and messaging. This can include recommending products, creating personalised landing pages, and tailoring email campaigns. 

2. Improved targeting

With AI, marketers can analyse customer data to identify the most effective channels and messaging for reaching their target audience. This can include creating lookalike audiences, identifying customer segments with high conversion rates, and targeting specific keywords. 

3. Better customer analysis

AI can analyse large amounts of customer data from various sources, providing marketers with a more complete picture of their audience. This can include insights into customer behaviour, interests, and preferences, as well as sentiment analysis of customer feedback.

4. Streamlined processes

AI can analyse large amounts of customer data from various sources, providing marketers with a more complete picture of their audience. This can include insights into customer behaviour, interests, and preferences, as well as sentiment analysis of customer feedback.

5. Improved ROI

Using AI to optimise their campaigns helps marketers improve the effectiveness of their marketing efforts, leading to higher ROI. This can include optimising ad placement, adjusting bid prices, and targeting specific audiences.

What is the future of AI in digital marketing?

AI has changed the field of marketing and has also helped the field of digital marketing by enhancing customer experience. AI provides data about clients and their needs, which helps understand and plan the ways to target clients.

This is all possible with the help of machine learning algorithms that can scan and evaluate large volumes of data from various sources like customer feedback, social media, web analytics, etc. Through careful analysis of data, here's how AI is changing the future of digital marketing has helped in the following ways-


Benefits of AI in digital marketing -

  1. Analyze customer behaviour
  2. Increase customer engagement
  3. Detect churn tendencies
  4. Anticipate purchase preferences
  5. Predict future trends
  6. Personalize marketing campaigns
  7. Increase conversion
  8. Target past customers
  9. Enhance ad targeting

All of these functions play a huge role in how AI is changing digital marketing. AI powered algorithms and machine learning models are set to keep growing more and more and will continue simplifying all of these functions. AI is set to revolutionize the future of digital marketing and enhance the way businesses connect and engage with customers.

Can AI affect Marketing?

How does AI affect the marketing? How AI changes marketing? How will artificial intelligence change the future of marketing? These are common questions about AI marketing. As much as it can positively help marketing it can also affect marketing in some ways -

  • While AI Marketing has the potential to impact & transform the various functions in it, it is unlikely to replace human marketers.
  • AI can automate repetitive tasks, provide insights to optimize marketing strategies and analyze vast amounts of data but it may not always be accurate . 
  • AI lacks creativity and human marketers bring skills & qualities like creativity, intuition, ability to understand complex emotions & motivation, etc - that cannot be replicated.

Frequently Asked Questions

1. What are the ethical concerns of using AI in marketing?

AI in marketing raises a few ethical concerns around privacy, bias, transparency, manipulation, and job displacement. To mitigate these concerns, businesses should prioritise transparency and ethical practices when using AI. This includes using unbiased algorithms, being transparent about data collection and use, and ensuring that AI does not lead to negative social impacts.

2. What industries will be impacted the most by AI in marketing?

There is no industry that is not impacted by AI. Industries that rely on data-driven decision-making and customer engagement, such as retail, healthcare, hospitality, and education, are likely to be impacted the most by AI in marketing. AI can help personalise product recommendations, improve patient care, detect fraud, and optimise advertising campaigns, among several other benefits.

3. Will AI replace human marketers in the future?

While there is news about how AI is changing marketing it is also likely to change the nature of marketing jobs and the skills required to succeed in the field, it is not expected to completely replace human marketers in the foreseeable future.While AI can automate repetitive tasks and optimise marketing strategies, marketing is a creative and complex field that requires human judgment, empathy, and intuition to connect with customers and build brands. While AI will play an essential role in marketing, it cannot replace human creativity and emotional intelligence.

4. How to use Generative AI in Marketing?

Generative AI technology is rapidly growing and providing excellent results, today it’s used to create high quality content that is relevant and engaging, which helps target the right audience. Using Generative AI in Marketing helps business to automate content creation and SEO which in turn helps them save their time and money.

Engati Team

At the forefront for digital customer experience, Engati helps you reimagine the customer journey through engagement-first solutions, spanning automation and live chat.

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