Recent advancements in machine learning, such as GPT 3.5 and other complex large language models (LLMs), have brought reformative changes to the forefront. These breakthroughs have significantly improved generative AI, enabling it to learn independently and engage in highly context-aware and nuanced conversations. This progress has made the integration and deployment of AI-based applications crucial across various industries and business functions.
For a while now, AI has been enhancing the capabilities of marketing and sales teams by automating processes, interpreting consumer sentiment, and predicting behavior. It has increased efficiency and intelligence in these areas. With the emergence of easily accessible generative AI tools in the martech space, the industry is currently undergoing a period of transition.
Exotel, the emerging market’s leading customer conversation platform, released its survey-led report today, building upon the insights gained from their previous survey conducted in February 2023. According to this previous survey Exotel conducted, 65% of marketers highlighted the significance of delivering an optimal customer experience as the key to success in 2023. The survey being announced today builds on this pivotal finding and explores how marketing leaders across diverse industries are strategically adapting and responding to the rapid emergence of generative AI. The results shed light on the urgency of harnessing generative AI for enhanced customer engagement, satisfaction, improved efficiency and increasing revenues.
Marketers are Ready for the Era of Generative AI
The majority (84%) of marketers feel right at home with harnessing the capabilities of AI in their processes, reporting that they are “very familiar” with its use for marketing. They are highly positive about its potential and capabilities, expressing that they see AI’s benefits for increasing efficiency (87%), improving customer insights (83%), providing better customer experience (84%) and even increasing revenue (78%).
Marketing Leaders Optimistic about AI’s Returns Potential: Budgets Set to Surge
A staggering 37% of respondents have confirmed a budget of over 50 lakhs dedicated to AI in 2023, while an impressive 10% are planning to spend more than 1 crore on the technology this year.
The substantial increase in AI investment within marketing budgets reflects a strong sense of optimism for its future impact. A significant majority of leaders (70%) firmly believe that AI will revolutionize the marketing landscape within the next 3-5 years. Only a mere 4% of respondents emerged as more skeptical, expressing doubts about the technology’s potential impact on the industry.
Chat Trumps Voice in Marketing Automation
Chat taking the lead over voice is gaining momentum in the marketing automation space. According to most marketers, the primary way they have been leveraging complex generative AI tools is through the use of chatbots (36%) to enhance customer experiences by providing efficiency and comprehensiveness. The second most popular integration of AI into processes has been through predictive analytics (24%) for better understanding consumer behavior, followed by personalization algorithms (21%) and voice recognition technology (17%).
The growing popularity of chat as a preferred communication method over voice can be attributed to factors such as lower upfront investments, the convenience for users to engage with bots on popular platforms like WhatsApp, and the ability to generate accurate written records of conversations for sentiment analysis. With the incorporation of more advanced large language models (LLMs) into chatbots for customer conversations, the trend of chat-based communications is expected to continue its growth.
The chatbot industry is projected to expand significantly, driven by the increasing demand for AI-powered customer interactions.
High Costs Act as Barrier to AI Adoption in Marketing Operations
The primary hurdle, according to marketers, is the initial investment required for AI implementation, cited by 41% of respondents. However, this underscores the immense potential and value AI brings to marketing strategies. Companies are actively working to overcome setbacks related to integrating AI tools with legacy systems (32%) and modernizing infrastructure for improved efficiency. While there may be some resistance to change among team members (13%), marketing leaders are embracing AI advancements and driving its adoption. This positive attitude fosters collaborative efforts to address concerns and maximize the benefits of AI in marketing operations.
Udit Agarwal, VP & Global Head of Marketing at Exotel, expressed enthusiasm about the survey findings, stating, “the rapid adoption of advanced AI-based tools in marketing indicates a significant transformation within the industry. Marketing leaders in India are embracing the potential of AI, prioritizing automated chat as a key focus for businesses. As language models continue to evolve, we expect this trend to endure. Intelligent chatbots capable of delivering immediate and personalized customer communications are poised to become a pervasive phenomenon, revolutionizing customer engagement and driving growth across industries.”
Methodology
Exotel received responses from 300 marketers in an online survey that was conducted in May 2023. CMOs, VP Marketing, and Chief Customer Experience Officers responded to this survey from mid to large organizations across verticals of Tech, BFSI, E-commerce, Telecom, and Automotive.
