In the fast-paced world of technology, marketers are facing a new challenge – the impact of Artificial Intelligence (AI) on consumer decisions. As traditional methods like web crawling become less effective, consumers are turning to AI-powered tools like GPT (Generative Pre-trained Transformer) for guidance. In this article, we will explore the expanding role of AI in marketing and strategies for brands to navigate this emerging era.
AI, once primarily used for data analysis, now plays a significant role in shaping consumer behavior. Experts predict that AI agents and large language models (LLMs) will soon capture a substantial part of advertising expenditures. This shift is driven by influential figures in the corporate and government sectors recognizing AI’s potential to revolutionize marketing practices.
Inflection AI, supported by industry giants like Bill Gates, Nvidia, Microsoft, Reid Hoffman, and Eric Schmidt, is a major player in this field. Their latest breakthrough, Pi, a personal intelligence chatbot, uses Inflection-1, a powerful language model that surpasses OpenAI’s GPT-3.5. With its personalized and emotionally-driven approach, Pi offers brands a unique opportunity to connect with their customers on a deeper level.
Marketers, who have successfully overcome disruptions in the past, must now focus on optimizing for AI instead of traditional search engines. According to industry analyst Jeremiah Owyang, AI will not only disrupt Search Engine Optimization (SEO), but also the entire e-commerce industry. Marketers must shape AI behaviors while still influencing human decision-making.
In this new era, having a branded AI model is essential for marketers. Major brands like Walmart, Macy’s, and The New York Times are exploring the potential of developing their own LLMs. This gives them more control over the AI experience and allows them to provide accurate information to consumers through their chatbots.
However, training branded AI models comes with its own challenges. Marketers aim to leverage their corporate API, but a universally accepted protocol for real-time data feed is yet to be established. Collaboration and industry-wide standards are crucial for seamless integration and optimal functionality.
Enter AI Engine Optimization (AEO) – a concept that differs from traditional SEO. AEO requires the use of real-time information and branded AI to provide accurate and up-to-date responses. Chatbots rely on data from LLMs to give users relevant information, highlighting the need for marketers and content creators to adapt their strategies, optimize for AI, and foster personalized interactions.
The future envisions every brand having its own independent AI agent that interacts with buyer-side agents. This interconnected network of AI systems will revolutionize how consumers engage with brands. However, it also raises ethical concerns about the power of AI and its ability to manipulate consumer decisions.
As we approach a monumental shift in marketing practices, the call to action for marketers is clear – we must equip ourselves to shape human decision-making and influence AI behaviors. The rise of AI influencers requires a new approach, where brands use AI to deliver personalized experiences while maintaining transparency and ethical standards. By embracing this new era, marketers can navigate the evolving landscape and thrive in the age of AI.