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Artificial Intelligence (AI) is revolutionizing the field of marketing, offering unprecedented opportunities for personalization, efficiency, and customer engagement. This textbook explores the intersection of AI and marketing, providing a comprehensive overview of how AI technologies are reshaping marketing strategies and practices.
This textbook introduces key concepts of AI in marketing. More specifically:
Chapter 1 explains the evolution of Artificial Intelligence from its theoretical beginnings with Alan Turing to its current state as a transformative technology. It details how AI works through data analysis, pattern recognition, and machine learning algorithms. The chapter breaks down core concepts including algorithms, machine learning types, deep learning, natural language processing, and robotics. Finally, it presents two frameworks for categorizing AI: one based on similarity to human behaviors and another based on technological capabilities.
Chapter 2 examines the ethical implications of AI in marketing through five fundamental principles: beneficence, non-maleficence, autonomy, justice, and explicability. It explores how these principles interact and sometimes conflict across different stakeholder levels, while discussing AI’s potential to promote societal good alongside the challenges of balancing effective marketing with environmental responsibility.
Chapter 3 analyzes how AI transforms consumer experiences through four key dimensions: data capture, classification, delegation, and social interaction. The discussion explores how each dimension creates distinct tensions in consumer engagement with AI systems, demonstrating how these experiences can simultaneously empower and constrain, connect and alienate, serve and exploit consumers.
Chapter 4 provides an in-depth look at Large Language Models (LLMs) and generative AI, explaining their capabilities and limitations. It introduces effective prompting techniques and problem formulation strategies, while emphasizing the importance of understanding AI as a mathematical mirror reflecting patterns rather than truly “thinking.”
Chapter 5 examines how AI revolutionizes customer and competitive intelligence through advanced data analysis and pattern recognition. The discussion details how various technologies enhance market understanding, culminating in a comprehensive case study of Starbucks’ use of AI for competitive and customer intelligence.
Chapter 6 explores how AI transforms the customer journey through Personalization, Automation, and Prediction (PAP). The chapter analyzes how these capabilities enhance each journey stage: awareness, consideration, purchase, and post-purchase, demonstrating how AI enables more personalized, efficient, and proactive customer experiences.
Chapter 7 examines the role of AI in content creation, from ideation to publication. It details the benefits of AI in content creation while addressing key challenges, including balancing AI assistance with human creativity and ensuring content quality. The chapter concludes with a case study of The Washington Post’s Heliograf system.
This textbook provides a comprehensive overview of AI’s transformative impact on marketing, from ethical considerations and customer experiences to practical applications in intelligence gathering, customer journey management, and content creation. Throughout, it emphasizes both the opportunities and challenges presented by AI in marketing while providing practical guidance for implementing AI solutions effectively and responsibly.