Observed Signal · Aug 14, 2023 · Other · Source: CMSWire · Impact: 2/5 · Sentiment: Positive
Marketing, Customer Care Top Generative AI Use Cases
A McKinsey Global Survey reveals that generative AI is increasingly on corporate boards' agendas, with marketing and sales, product/service development, and service operations as the top business functions. Gartner's earlier poll also identified customer experience/retention as the primary focus of generative AI investments. The article highlights common use cases such as crafting first drafts, personalized marketing, and customer service chatbots. It also notes that only 21% of organizations have policies governing generative AI use, and high performers (those attributing at least 20% of EBIT to AI) use AI more extensively.
Provides insights into generative AI adoption in marketing and customer service, indicating growing importance for MarTech.
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Key Takeaways & Evidence Grounding
- 28% of businesses have generative AI on their board's agenda
- Marketing and sales are the top business functions for generative AI use
- Gartner found 38% of respondents consider customer experience/retention as primary focus of generative AI investments
- Only 21% of organizations have established policies governing employee use of generative AI
- High performers attribute at least 20% of EBIT to AI use in 2022
Connected Companies & Entities
2 Entities mapped“The McKinsey Global Survey released this month found 28% say generative AI use is already on their board’s agenda....”
“Gartner earlier this year reported that 38% of respondents consider customer experience/retention as their primary focus of generative AI in...”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Verndale Launches AI Visibility & Content Supply Chain Services
Verndale, a digital consultancy, has introduced new services to help marketers measure and improve their brand's visibility in AI-generated answers. As AI assistants like ChatGPT and Google's AI Overviews increasingly influence research and buying decisions, brands need to know whether they are mentioned, recommended, and correctly described in these responses. Verndale's services include an AI Visibility assessment that tests real audience questions across major AI platforms, identifying gaps in brand mentions and citations. They also offer an AI-Ready Content Supply Chain Assessment to optimize content operations for AI-era discoverability. The company cites research from SparkToro showing 68% of Google searches end without a click, and Gartner reporting 45% of B2B buyers use generative AI for purchase research. A case study with Quinnipiac University demonstrated significant improvements in content optimization and AI readiness through governed agent workflows.
OK Future's AI 'Pressure Cooker' Campaign for Goodwipes
Former MullenLowe U.S. CEO Frank Cartagena launched creative shop OK Future to test generative AI's potential for a small agency. Their first project, a spoof of OpenAI's Astra ad for personal hygiene brand Goodwipes, was produced in four days using AI tools like ArtCraft, Seedance, and OpenAI's Astra model, cutting projected production costs from $700,000. The campaign, 'Meet Asstra,' gained over 1.5 million views on Reddit. However, Cartagena described the pace as 'unsustainable' and a 'pressure cooker,' with team members working around the clock and even threatening to quit. Goodwipes' SVP of Marketing, Meredith Diehn, emphasized trust in Cartagena and the value of experimenting with AI. The article highlights the growing use of AI in creative production, with 73% of marketers using GenAI for visual content and Gartner forecasting AI software spending to reach $981 billion by 2029.
AI Startups Face Pricing Power Squeeze from Model Suppliers
An analysis by Trending Topics highlights a structural challenge for AI startups: they often act as token resellers with thin margins, akin to middlemen, rather than classic software businesses. Using a fictional sports app example, the piece illustrates how costs for app store fees, token consumption, and free-tier AI features can erode profits. Citing a market study, it notes inference costs average 23% of revenue for scaling AI firms, with gross margins around 52% versus 78-80% for traditional SaaS. The article discusses how providers like OpenAI and Anthropic hold pricing power, and some startups, like Cursor, invest heavily in own infrastructure to reduce dependence, though this is often not feasible for most. Neoclouds are seen as not solving the fundamental dependency issue. However, a counterview suggests that rapidly falling inference costs could improve margins, and AI-native startups have already captured significant market share in some segments. The piece concludes with strategic advice for startups to focus on proprietary data, workflow integration, and cost optimization.
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