AI in marketing: Infosys study finds value realisation gap

New research from the Infosys CMO Radar 2024 reveals that while a significant proportion of enterprises have integrated artificial intelligence (AI) into their marketing functions, nearly half of these initiatives are not achieving the anticipated business value.

The report indicates that 73% of enterprises have launched AI, including generative AI, across marketing - yet only 52% of these deployments realise business value.

This data underscores the gap between AI adoption and effective implementation in marketing strategies.

Findings also highlight that AI-fluent Chief Marketing Officers (CMOs) are gaining more influence within their organisations. According to the report, 62% of CMOs predict that their sway over broader corporate decisions will continue to grow as they leverage AI to improve brand experience and marketing efficiency.

The study categorises CMOs into three groups based on their AI fluency: Leaders (13%), Learners (60%), and Laggards (27%). AI-fluent CMOs are characterised by their ability to make data-driven decisions, utilise predictive AI, and enhance their teams' capabilities by combining data, industry expertise, and creative execution.

The Infosys CMO Radar 2024 survey included responses from 2,600 marketing leaders across industries in Australia, Germany, the Nordics, the UK, and the US. It explored the use of AI for various marketing activities, such as content creation, conversational agents, sales enablement, personalisation, campaign management, and analytics.

Research found that 96% of marketing leaders have deployed AI for at least one marketing activity, and 30% have implemented it across all seven key marketing areas.

The report projects that in the next 18 months, AI will deliver measurable value, including productivity gains of 15 percentage points, cost savings of 13 percentage points, and an 11 percentage point increase in speed to market. The CMO Radar 2024 outlines four tactics employed by AI-fluent CMOs to maximise the value from their AI initiatives:

Embedding AI into business and marketing processes is crucial, allowing real-time data insights and adaptable tactics.

CMOs who align AI strategies with business and marketing goals are more successful, as they build AI capabilities throughout the marketing value chain. Moreover, effective risk management in AI marketing is essential, given that 43% of companies use ad hoc risk mitigation methods. Lastly, scalable and optimised MarTech stacks, particularly those utilising real-time customer data platforms (CDPs), are vital for unlocking AI's full potential.

Satish H C, EVP and Chief Delivery Officer at Infosys, stated, "Very early on, at Infosys, we saw how AI promises to disrupt the way B2B and B2C players think about customer experience, marketing productivity, and growth. The findings of the Infosys CMO Radar 2024 report point to how forward-thinking marketing leaders are adjusting to this new landscape. Central to this transformation is the reimagining of marketing end to end, embracing a holistic approach to innovation. By focusing on disintermediation for agility, businesses can swiftly adapt to changes and enhance their competitive edge.

The report underscores the vital role of leadership in harnessing AI capabilities to drive marketing innovation and customer engagement. With Infosys Aster, we are already bringing the digital capabilities for marketing leaders to maximise operations, while taking advantage of advances in marketing effectiveness and personalisation in an AI-first future."

Sumit Virmani, EVP and Global Chief Marketing Officer at Infosys, remarked, "CMOs face the dual challenge of fueling growth in the short-term while articulating the value of their brand investments in the medium term."

"They recognise AI's, especially generative AI's, potential to help them rewire marketing for greater effectiveness. They know it can also be a key amplifier of marketing impact to the business and its influence within the C-Suite.

The Infosys CMO Radar 2024 unpacks the tactics that CMOs can embrace to get and stay ahead in these times of AI-powered transformation."