Most businesses are betting big on GenAI by 2025

Businesses across sectors are preparing for major GenAI investments, with 90% of organizations planning to allocate resources toward this technology by 2025—according to a global study by SAS and Coleman Parkes Research.

This interest is fueled by GenAI’s potential to transform how companies engage with customers, process data, and optimize marketing strategies.

For many, the investment in GenAI is seen as a strategic move to stay competitive, streamline marketing operations, and improve customer experiences. Large-scale adoption is driven by the promise of automating routine tasks and uncovering deeper customer insights.

Majority of organizations show interest in GenAI applications

Organizations are primarily interested in using GenAI for marketing, which is expected to see widespread adoption across industries. Broad interest here lies in the technology’s potential to boost efficiency, generate personalized content at scale, and automate labor-intensive processes like data analysis and reporting.

Despite enthusiasm, most companies are still exploring GenAI’s capabilities, particularly for advanced use cases that go beyond content creation.

CMOs admit they don’t fully get GenAI’s impact yet

Widespread knowledge gaps among marketing leaders

Despite the growing push for GenAI investments, 90% of CMOs acknowledge that they don’t fully understand the technology. Lack of knowledge surrounds the mechanics of GenAI and its broader impact on marketing processes and business operations.

CMOs are in a tough position—while they are being pressured to lead GenAI initiatives, many struggle to grasp the intricacies and full scope of its capabilities. Knowledge gaps can slow down the integration of more advanced and innovative GenAI applications, potentially impacting the overall ROI.

CMOs are unclear about GenAI’s potential impact on business processes

Many senior marketing leaders are uncertain about how GenAI will impact core business processes beyond traditional marketing functions. GenAI’s potential to reshape customer journey mapping, audience segmentation, and price optimization is often overlooked.

Disconnects between what GenAI can offer and how it is currently being used creates a strategic void that limits its overall business impact. CMOs must become more informed to drive its full integration into marketing strategies.

Most marketers are stuck using GenAI for basic tasks only

Current GenAI use focused on tasks like copywriting and content creation

Although 75% of marketers are already using GenAI, their applications are mostly limited to simple tasks like generating copy, editing content, and automating basic workflows—functions that represent the low-hanging fruit for GenAI adoption—as they offer immediate gains in productivity and efficiency.

These tasks only begin to tap into the broader potential of GenAI, which can deliver deeper insights into customer behavior and market trends when used more strategically.

Adoption is more advanced in marketing than in other functions, including IT

Interestingly, marketing departments are leading the charge in adopting GenAI compared to other areas like IT—largely because marketing professionals are constantly tasked with content creation and data analysis, areas where GenAI can offer quick wins.

IT teams, however, are more focused on technical challenges and infrastructure concerns, which may slow down their adoption pace. Marketing’s creative nature makes it a natural fit for GenAI, but more advanced use cases remain underexplored.

Advanced GenAI applications are still a rare find in marketing

Only 18% of marketers use GenAI for audience building

Despite the hype around GenAI, only 18% of marketers are using it to build audiences. This may point out a missed opportunity, as GenAI can greatly improve audience segmentation and target more precise customer groups.

Tools like machine learning algorithms can analyze customer data in real time to create highly tailored audience profiles, but few marketers are leveraging this capability to its fullest extent.

16% use GenAI for customer journey mapping

Only 16% of marketers are using GenAI to map the customer journey. Low adoption here is surprising given that customer journey mapping is key for personalizing experiences and improving customer satisfaction.

GenAI can streamline this process by analyzing customer interactions across many different touchpoints and predicting next steps. Even then, most marketers are not yet exploring these capabilities.

14% use GenAI for price optimization

Price optimization is another underused area for GenAI. Only 14% of marketers are currently applying GenAI for this purpose, even though the technology offers the ability to process large datasets and recommend optimal pricing strategies based on market trends, customer behavior, and competition.

GenAI can offer dynamic pricing models that adjust in real-time, but few companies have integrated this functionality.

19% use GenAI for audience targeting

While audience targeting is a key aspect of marketing, only 19% of marketers are using GenAI to refine this process. Audience targeting can be greatly improved by AI-driven data analytics, which lets marketers reach the right customers with highly personalized content.

GenAI can analyze behavior patterns and past interactions to predict customer preferences, yet its potential remains largely untapped.

GenAI delivers impressive ROI for marketers who take the leap

92% of marketers see ROI in personalization through GenAI

GenAI’s biggest strength lies in personalization, with 92% of marketers reporting strong returns in this area. AI-driven personalization helps marketers craft highly customized content and experiences for individual customers, creating more meaningful interactions.

Processing large volumes of customer data in real time gives brands a clear competitive edge in building loyalty and driving engagement.

Customer satisfaction and retention improve for 89% of marketers

Nearly 9 out of 10 marketers (89%) have seen improvements in customer satisfaction and retention through GenAI. Through analyzing customer preferences and behaviors, GenAI can create tailored offers, recommendations, and interactions that keep customers engaged and coming back. The ultimate result is a more satisfying customer experience, leading to increased retention rates.

88% of marketers benefit from GenAI in processing large data sets

GenAI excels at processing and analyzing large datasets, with 88% of marketers citing benefits in this area. Marketers are increasingly dealing with vast amounts of data from multiple sources, and GenAI tools can help them make sense of this information quickly and accurately—improving decision-making and ultimately leading to more effective marketing campaigns.

88% of marketers report higher accuracy in predictive analytics

GenAI’s ability to deliver more accurate predictive analytics has benefited 88% of marketers. Through forecasting customer behavior, market trends, and campaign outcomes, predictive analytics helps marketers allocate resources more efficiently and design better strategies.

Marketing’s creative nature supports GenAI experimentation

Marketing is a field that thrives on innovation, making it a natural space for GenAI experimentation. From creating personalized content to optimizing ad campaigns, marketers are quick to test new technologies to find what works best.

Willingness to experiment is what gives marketers an edge, but without proper education and training, many are missing out on more complex GenAI applications that could drive greater efficiency and growth.

Lack of understanding at senior levels hinders full potential realization

While GenAI offers a wide range of applications, a lack of understanding among senior leaders limits its use. Many marketing departments are still using GenAI for simple tasks, not realizing the full potential that advanced applications like predictive modeling and audience segmentation can offer.

Senior leadership needs a deeper understanding to push for more strategic uses of GenAI that can greatly impact business outcomes.

Education and training needed to drive business growth and improve customer experience

The gap in GenAI knowledge points to a broader need for education and training across organizations. Investing in GenAI training programs can help CMOs and marketing teams get up to speed on the technology and learn how to apply it to drive business growth and improve customer experience.

Structured learning initiatives should be put in place to better help bridge the knowledge gap and push for more innovative and impactful uses of GenAI in marketing efforts.

Final thoughts

As GenAI continues to transform marketing as we know it, the key question to ask is: Is your brand ready and equipped to move beyond basic tasks and truly leverage its full potential?

CMOs who can bridge the knowledge gap and use advanced applications like predictive analytics and audience mapping will shape the future. Where does your brand stand?

Tim Boesen

October 21, 2024

7 Min