How AI is Upending Digital Marketing

Nearly three years into the ChatGPT era, there’s little doubt that artificial intelligence is upending the business of marketing. Hyper-influential persuasion pro Seth Godin has called AI “the biggest change in our world since the invention of electricity—a bigger change than the internet.” In June, bestselling author and entrepreneur Neil Patel proclaimed “If you’re not using AI in marketing, you’re already falling behind.” As digital marketing mogul Gary Vaynerchuk recently asserted, “It’s going to be a complex and unpredictable and unprecedented era ahead.” 

How is this transformative moment changing the work of digital marketers and the brands they represent?

Alison Simpson has some thoughts. Simpson is a seasoned industry exec who spent years leading both agency and brand-side marketing teams before taking the helm of the Canadian Marketing Association in late 2022—just as generative AI exploded. To date, a big part of her mandate as president and CEO has been helping members navigate this technological shift—through advocacy, education and the sharing of resources, including a set of playbooks devoted to key facets of the technology. “A key focus of the CMA is future-proofing marketers and the marketing profession,” she says.

In the view of Simpson—who also sits on the Smith Analytics & AI Advisory Board—today’s marketers have a responsibility to approach AI with a balance of progress and prudence. As she explains to Smith Business Insight senior contributor Deborah Aarts, the opportunity is rich if they get it right.

How would you characterize AI’s influence on digital marketing today?

We’re at a pivotal time. Digital marketing has been evolving quickly for decades now, but with the recent acceleration of technologies—especially GenAI—the pace of change has accelerated tenfold. And we in the marketing profession are at the forefront of understanding that change and how to leverage it.

How so?

I’ve been around executive tables for many years now. Anytime something new like GenAI comes along, everyone, including the CEO, looks to the CMO or the senior marketing leader with an expectation that they’re going to be first to understand what’s changing, why it’s important, and how it’s going to impact both businesses and brands.

At a high level, that means today’s marketers are constantly adapting to new tools and new platforms, while striving to meet much higher customer expectations around personalization, speed and relevance. According to research, 74 per cent of Canadian marketers are using generative AI weekly. That is outpacing other knowledge workers, including scientists, who are sitting at 62 per cent. That early adoption bodes well for our understanding and our ability to leverage digital marketing in a powerful way.

It’s a wonderful opportunity for marketers. It can also be a little intimidating, because staying on top of all this change isn’t easy.

Let’s unpack some of those changes. How is AI affecting the more technical and analytical side of marketing?

AI can really help marketers work smarter and with greater precision, especially when it comes to things like segmentation, targeting and measurement data.

The technologies available today are also helping to improve campaign effectiveness and performance. They allow teams to more easily test, learn and optimize in real time. When I started my career, it was hard to truly measure the impact of marketing through to leads, through to ultimate sales and business outcomes. That’s no longer the case. It’s a lot easier to understand when something is working and when it is not. This is really powerful, because in a challenging economy—or any economy, really—every dollar you spend has to serve the needs of the business. 

What about the creative side? Is the degree of sophistication you just outlined making marketing more science than art?

I fundamentally don’t think that technology will change the importance of creativity in marketing. Art and creativity have always been, and absolutely always will be, core to a marketer’s and a brand’s success.

Canadians see up to 10,000 ads every single day. Human creativity helps ensure your approach stands out in that clutter. It is what allows marketers to understand and connect with consumers emotionally and in memorable ways that will drive awareness and, ultimately, action. It’s what ensures that your product and marketing are differentiated. If you don’t have that, the science and precision don’t matter.

What role do you see generative AI playing in this creative process?

It can enhance it, and it will certainly change how creativity comes to life. GenAI can speed up the creative process. It can inspire new directions. And it helps smaller companies with smaller budgets to punch above their weight with marketing that historically would have required big budgets.

GenAI will never replace the need for the the pivotal human role that creativity plays in marketing. But it is a powerful collaborator.

The CMA recently added a set of principles for responsible AI use to its Canadian Marketing Code of Ethics and Standards. How did you arrive at your position?

Our position was informed by conversations with our members, with industry experts, with regulatory leaders. We recognize that any new technology—and certainly AI—brings both opportunities and risks, so we developed very clear ethical guidelines.

The guidelines reflect an important commitment to supporting innovation—so that our brands can compete nationally and globally—while also promoting trust in marketing and protecting Canadian consumers. They are meant to help marketers adopt AI responsibly and align with legal requirements and evolving public expectations.

It’s a living document. It’s very principles-based, because the reality is, AI is evolving so quickly that none of us can predict where it’s going.

What does responsible AI use look like in marketing?

It begins with strong human oversight in the development and the deployment of the AI systems, especially for any customer-facing tools or for those that have potential to significantly impact individuals.

Organizations should always be transparent with consumers about how AI is being used to collect, to analyze and apply to their data. They should also disclose when AI is influencing any decisions around pricing, personalization or product recommendations.

Responsible use also means being compliant with privacy laws, limiting the data they’re collecting to what’s necessary, and safeguarding any data through really strong security measures.

What are the risks of playing fast and loose? 

If you’re recklessly using AI, there’s a higher chance that you’re introducing or amplifying a bias, especially if the systems are trained on flawed or incomplete data. That can result in unfair treatment of consumers, which can lead to huge reputational damage and long-term harm to both the brand and the business.

Relying on AI-generated creative content without any human editorial checks can also be risky, because AI often doesn’t get it right. It can result in content that is inaccurate, misleading and unintentionally harmful. You can also compromise your brand voice, introduce inconsistent messaging and dilute authenticity. Again, it speaks to the importance of seeing AI as a collaborator, not a replacement.

On the other side of the spectrum: What are the risks of being too cautious?

There is absolutely a risk of being left behind. I often say to marketers, ‘You’re not going to lose your job to AI. You are going to lose your job to a marketer who understands and leverages AI.’ A key part of succeeding in a marketing career is being curious, constantly learning, and constantly evolving. If you’re not staying current, there’s a very real risk that you’re going to be outpaced by competitors who are leveraging AI in ways that deliver more personalized, efficient, scalable marketing. 

From a business point of view, if you’re not exploring how AI can also support you from a strategic and operations perspective, that can lead to missed opportunities for growth, innovation and cost savings. There’s also a risk of reduced relevance.

In what ways?

Canadian consumers are really smart. They’re using GenAI themselves. And their expectations are evolving as a result.

Here’s an example. We did some research earlier this year to better understand consumer thoughts on personalization, privacy and digital marketing. It told us that Canadians today want, and increasingly expect, personalized marketing. We found that 73 per cent of Canadians prefer receiving digital ads that are relevant to their interests over generic, unrelated ads—that’s a substantial increase of 12 per cent since 2023. Building on that, 47 per cent of Canadians agree that given today’s technology, it’s unacceptable for an organization to send them irrelevant ads. 

Consumer expectations will continue to change, and brands that aren’t staying current and are failing to adopt intelligent tools will really struggle to deliver the customization that Canadians now expect.

What excites you most about the future of digital marketing in Canada?

I’m excited to see how marketers are going to continue to lead in adopting ethical, consumer-first approaches to technology. I’m excited to see how they find ways to connect with consumers in new and motivating ways that will significantly benefit businesses and, ultimately, our economy. And I’m excited by how well-positioned Canada is, with our strong innovation ecosystem, to shape the future of digital marketing in a way that is both impactful and inclusive.

It really is an unparalleled time of change for marketing, which opens up really outstanding opportunities for savvy marketers.