The State of AI in Digital Marketing Report from Invoca, a prominent player in conversation intelligence AI, was published today in San Antonio, California, on November 14, 2023. The report sheds light on the optimism and concerns of businesses regarding AI advertising technology in 2024.
An astounding 90% of businesses, as per the Invoca report, are planning to increase their AI investment in the coming year, marking 2024 as a crucial year for marketing AI technology. A significant 93% of respondents claim to possess either expert or advanced knowledge of marketing AI technology, indicating that a lack of AI expertise is a key obstacle to adoption. This drive to stay ahead may be fostering unwarranted confidence in their AI capabilities.
Despite the mixed signals, the data shows that marketers are ready to embrace AI technology and are apprehensive about the potential high costs associated with delayed adoption.
To enhance efficiency, marketers will enhance the adoption of AI.
The economic landscape of the previous year has brought a focus on smart, effective spending to the forefront of organizational leaders’ and investors’ minds. While the intent of 90% of entrepreneurs to invest in AI in the upcoming year may not scream frugality, a striking 95% believe that AI will enable them to allocate their resources more wisely.
The primary reasons cited for ramping up AI investment are closely tied to revenue growth, encompassing areas like augmenting customer acquisition, increasing ROAS (return on ad spend), improving customer loyalty, and boosting overall performance. As 86% of respondents anticipate having dedicated AI martech expenditures in 2024, AI is evolving into a distinct budget category alongside investment expansion.
“Businesses have consistently invested in novel technologies over the past 15 cycles.” The adoption of AI is unfolding over decades, as per Peter Isaacson, CMO at Invoca, in contrast to the adoption timelines of other technologies such as sales technology or ABM systems, which spanned multiple years. The enthusiasm reflected in this report is not unexpected. “AI presents a vast opportunity for marketers, given its potential impact on various facets of marketing—ranging from budgeting and planning to execution across multiple initiatives.” However, to avoid lagging behind, businesses must have the confidence to swiftly act and embrace AI solutions with the most significant and clearest business implications.
Businesses could be overly confident in their AI proficiencies.
Nearly all surveyed marketers (93%) assert possessing advanced or expert-level knowledge of AI, showcasing a high degree of confidence in their competencies. They hold a similar view of their respective organizations, with 87% claiming to have more sophisticated AI talent compared to their competitors. While the confidence levels exhibited by businesses are encouraging, some of it may be unfounded, as not everyone can excel both as a leader and an analyst.
Executives top the list of individuals claiming expert-level familiarity with AI (60%), followed by directors (55%), and then managers (32%). This immediately contradicts the actual ownership of AI deployment within these organizations. Only 18% state that executives are responsible for AI adoption, while 34% attribute it to marketing teams and 29% place departmental managers in charge of AI. It is probable that those actively involved in the implementation of AI possess a higher level of AI experience compared to those with less direct involvement, indicating that businesses and professionals are spearheading AI integration.
Despite the optimism, concerns regarding the impacts of AI persist.
One of this year’s most significant revelations has been the rapid expansion of AI. However, where do marketers stand amidst the spectrum of AI enthusiasm and anxiety? The divide between those anticipating AI to create more jobs than it displaces (50%) and those holding the opposite view (41%) is narrow. The upcoming year will be pivotal in gauging how this sentiment—and the actual outcomes—may evolve as AI permeates marketing departments.
Businesses are cognizant of the steep price of neglecting AI, both for their personal career trajectories and organizational success. Merely 8% of marketers believe that AI will not significantly impact their future career prospects, while over 90% emphasize the importance of AI experience in hiring decisions in 2024. A recent report by Forrester titled “Predictions 2024: B2C Marketing” reveals that 20% of new CMO job descriptions include a requirement for “proficiency in conceptual AI.” This criterion extends even to the chief marketing role, signifying that maintaining the status quo poses the most substantial threat to career advancement through AI.
The 2023 State of AI in Digital Marketing Report from Invoca includes detailed insights into the surveys conducted.
Survey Methodology
To compile this report, Invoca surveyed 500 full-time advertising professionals in the U.S. at the manager level or above, working in companies with 100 or more employees, to gather their experiences and perspectives on AI. The report encompasses comprehensive demographic information within the document.
For additional information about Invoca, the leading provider of Conversation Intelligence AI, visit www.invoca.com.
