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Is AI Really Overhyped in Marketing? Here's What You Should Know

Is AI Really Overhyped in Marketing? Here's What You Should Know

Steve Hyde
Co-Founder
September 6, 2024
AI
introduction

As AI continues to dominate discussions in the marketing industry, some commentators are suggesting that its potential is being 'overhyped.'

I've seen this opinion pop up in major outlets like The Telegraph and The Times, but frankly, this perspective is shortsighted. It overlooks the long-term transformative power AI holds for reshaping marketing, both strategically and operationally.

The Gartner Hype Cycle offers a useful framework to understand the journey that emerging technologies, like AI in marketing, take. According to the model, new technologies often experience a period of inflated expectations, followed by a phase of disillusionment, before eventually reaching a plateau of productivity.

Take my recent experience as an example: Last week, I tried to recreate a simple product diffusion process diagram in Push’s brand colours. After wrestling with three well-known image generators, I was left utterly frustrated. AI in marketing may be approaching or sitting atop the "Peak of Inflated Expectations," but it's vital to remember that this is a natural part of tech adoption.

If you’ve been around long enough, you might remember the Dotcom bubble bursting in the early 2000s. At the time, some of my pals in FMCG land felt pretty smug. But, within five years, giants like Google and Meta (then Facebook) reshaped the digital landscape.

Critics pointing to the hype around AI in marketing today should remember a famous quote often attributed to Roy Amara, a futurist and former president of the Institute for the Future:

"We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run."

This idea, known as Amara's Law, perfectly encapsulates where we are with AI. So, if you're thinking that all the buzz around AI over the last 18 months has been overblown, think again.

If I had a pound for every marketer who thought Google was overhyped back in 2005 (when I first started playing with Google Ads), I'd have enough to buy a few Nvidia shares!

The Long-Term Potential of AI in Marketing

In the short term, sure, some of AI’s promises in marketing might feel overstated. We’re not at a point where AI can fully replace human creativity, intuition, and strategic thinking in marketing campaigns—yet. But focusing solely on these current limitations misses the bigger picture.

Looking ahead over the next five years, AI's potential in marketing is immense. As machine learning algorithms grow more sophisticated, data processing capabilities improve, and AI integrates more deeply with other marketing technologies, we’re likely to see it revolutionise key areas, such as:

1. Predictive Analytics

AI will give marketers the power to predict trends, customer behaviours, and campaign outcomes with accuracy like we’ve never seen. Our own internal tech at Push is already making strides in this direction.

2. Hyper-Personalisation

AI-driven systems will create truly personalised experiences for consumers across all touchpoints, moving beyond basic segmentation to individualised marketing at scale.

3. Content Creation and Optimisation

While AI won’t replace human creativity just yet, it will significantly assist with content generation and optimisation, helping marketers create engaging, data-driven content that maximises conversions.

4. Customer Service

AI-powered chatbots and virtual assistants will handle personalised, 24/7 customer support at scale, without sacrificing the personal touch consumers crave.

5. Marketing Attribution

The long-standing puzzle of multi-touch attribution is something AI will help to solve, providing clearer insights into the customer journey and delivering a more accurate picture of what’s working in your marketing mix.

Understanding the AI Marketing Hype Cycle

Let’s not forget that the Gartner Hype Cycle doesn’t dismiss the real progress being made. Sure, some applications of AI in marketing may be overhyped, but others are already delivering tangible benefits to early adopters. Just look at how AI is helping companies like ours achieve new levels of predictive analytics and campaign optimisation.

For marketers who remain unconvinced, I’d suggest you take a closer look at the strides being made in AI marketing tools. The same people who scoffed at Google’s impact in the early 2000s are the ones now scrambling to stay ahead of the AI curve.

What to Expect from AI in the Future of Marketing

While it’s easy to get swept up in the hype or dismiss AI as another fad, there’s no denying the long-term impact it will have on the industry. AI will not replace marketers—it will empower them to work smarter, faster, and more effectively.

As you ponder whether the hype around AI is justified, keep Amara’s Law in mind. The long-term impact of AI in marketing will likely be much larger than we currently anticipate.

If you’re still sceptical, feel free to get in touch or take a look at some of the case studies we've posted on the Push and across our social channels. It might just change your mind.

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