Retrieved February 11, 2019 from 2018; Castelo and Ward 2016). McKinsey global institute discussion paper, April 2018. Future progress in artificial intelligence: A survey of expert opinion. In this sense, AI could augment salespersons’ capabilities, but it also might trigger unintended negative consequences, especially if customers feel uncomfortable about AI monitoring conversations. The first four use cases, associated with short to medium term developments, involve task automation (see Fig. 723–723). Colson, E. (2018). AI is definitely going to showcase its impact on digital marketing. French, K. (2018). 0000035361 00000 n J. of the Acad. In contrast, the outcome spaces (i.e., business domains) for most likely AI applications are poorly defined, and relevant training data is hard to obtain. Retrieved February 11, 2019 from IBM’s Virginia Rometty tells NU grads: Technology will enhance us. (2019). 3-4). Article  Clothing suggestions from stylists who “swiped” on the app similarly to particular customers elicited more positive responses from the customers (i.e., both qualitative feedback about the stylist and increased sales of clothes curated by that stylist). Privacy is complicated (Tucker 2018), for three reasons: (1) the low cost of storage implies that data may exist substantially longer than was intended, (2) data may be repackaged and reused for rationales different than those intended, and (3) data for a certain individual may contain information about other individuals. Such factors may hinder AI adoption and deserve study. In The Economics of Artificial Intelligence: An Agenda. Using AI for consequential tasks is perceived as involving more risk, in turn reducing adoption intentions. One Stitch Fix data scientist created a Tinder-like app called Style Shuffle, to allow users to indicate preferences for various clothing styles. Here again, the objective is to augment human security guards’ capabilities (Robinson 2017). Nature, 521(7553), 452–459. Reese (2018, p. 61) cautions that this type of AI is in no way “easy AI.”. The valley reflects these trends, as reactions initially becoming more negative, then turn positive. Beyond concerns associated with culture, it may be pertinent to examine which other trait factors determine whether customers are willing to have their hair styled by robots or accept childcare/elderly care services delivered by robots (Pedersen et al. All this suggests that issues relating to bias remain a non-trivial problem (Knight 2017). A cross-cultural study: Effect of robot appearance and task. On the interpretations, illustrations, and implications of artificial intelligence. volume 48, pages24–42(2020)Cite this article. Wang, Y., & Kosinski, M. (2018). Retrieved February 11, 2019 from 0000035184 00000 n In contrast, context awareness continues to be developed, and researchers in computer science are working on moving AI capabilities forward, from task automation to context awareness (e.g., Ghahramani 2015; Mnih et al. Such robots are well suited to retail environments with well-structured operations. Does the trade-off depend on the product category or the level of the customer’s trust in the firm, for example? 0000060979 00000 n Villasenor, J. AI and machine learning for predictive data scoring. Further, information from external sources, such as social media or reports by data brokers, can augment these data. 0000012517 00000 n The necessary factors to allow AI to deliver on its promises may be in place already; it has been stated that “this very moment is the great inflection point of history” (Reese 2018, p. 38). In particular, we suggest that machines become unnerving when people ascribe to them experience (the capacity to feel and sense), rather than agency (the capacity to act and do)” (Gray and Wegner 2012, p. 125). 2013). But the danger remains that if customers discover that they are interacting with a bot, they may become uncomfortable, triggering negative consequences. 2019). Waiting for a sales renaissance in the fourth industrial revolution: Machine learning and artificial intelligence in sales research and practice. Also, Kroger has an AI application that automates visual inspection of out-of-stock items on its grocery shelves. Curiosity-driven data science. The first cell in Fig. Retrieved February 11, 2019 from 2018; Gray 2017) or that AI is relatively less able to identify what is unique about each customer (Longoni et al. Zhao, M., Hoeffler, S., & Dahl, D. W. (2012). In another example, Walmart has partnered with Bossa Nova Robotics to deploy robots in its stores to scan shelves. From somewhat human to human-like. MIT Sloan Management Review, 57(3), 21–25. Lastly, will salespeople be able to be trained/ to be able to manage customers’ concerns relating to AI, specifically issues related to data privacy and ethics. Fig. New AI can guess whether you’re gay or straight from a photograph. Forget killer robots – bias is the real AI danger. MIT Press. Retrieved February 11, 2019 from Will the evolution of AI reflect this model, or will its evolution differ and more closely map onto models that also integrate more traditional innovation models (e.g., Roger’s model, the Bass model)? This game-changing course in 2021 will cover artificial intelligence tools in content creation, curation, augmented reality, and digital marketing and will take you on a glimpse into the future. 2010). A world class new product development best practices model. With four years of data, developed a machine learning model that could identify such customers. 0000038267 00000 n In Fig. Privacy, algorithms, and artificial intelligence. Rahwan, I., Cebrian, M., Obradovich, N., Bongard, J., Bonnefon, J. F., Breazeal, C., et al. (2018). These questions from Prof. Jordi Canals, along with many other issues, were addressed at a recent conference on The Future of Management in an Artificial Intelligence-Based World. Comparing technological hype cycles: Towards a theory. Using the Lowebot augments the capabilities of Lowe’s human sales associates, allowing focus on more complex customer service requests. Deep learning. Further, building from prior work (Şimşek and Yalınçetin 2010; also see Haslam et al. Don’t blame the computer: When self-disclosure moderates the self-serving bias. Such issues reflect topics for further research. Probabilistic machine learning and artificial intelligence. However, other research shows that customers’ discomfort with AI is accentuated when the AI application is embedded in a robot. (2019). Our discussions with senior managers at 84.51Footnote 7 indicate that they are working with Kroger to implement in-store robots that can identify misshelved or out-of-stock items. 0000095279 00000 n Contingent on levels of predictive accuracy, firms may even substantially change their business models, providing goods and services to customers on an ongoing basis based on data and predictions about their needs. In Proceedings of the International Symposium of Social Study AI Simulation Behavior (pp. (2019) propose that offering customers the opportunity to slightly modify the AI may get these customers to look past uniqueness neglect, and focus more on the benefits of personalization. 1999). 2016). Castelo, N., Bos, M., & Lehman, D. (2018). The widespread “retargeting” of digital ads is one example of this phenomenon. trailer << /Info 500 0 R /Root 651 0 R /Size 725 /Prev 535323 /ID [<6fdd221388ced91ad6d50ef8ef9f1093><2c56bec506fce8e18e4f7931c4a30959>] >> Moving forward, we discuss (separately) issues relating to AI adoption and AI usage. Finally, we consider the privacy–personalization paradox (Aguirre et al. In addition, AI may not be able to distinguish attributes that could induce potential bias. x�c``�a`�f`c`�Qed�0����d���ߢLTE��e���Ɔ��X�1. Third, the business model currently used by online retailers generally requires customers to place orders, after which the online retailer ships the products (the shopping-then-shipping model—Agrawal et al. Customers should adopt AI if its use leads to significantly fewer accidents; instead, customers impose higher standards and seek zero accidents from AI. Applications that can process such data inputs include, for example (1) IPSoft, which processes words spoken to customer agents to interpret what customers want (2) Affectiva, which is working on in-car AI that can sense driver emotion and fatigue and switch control to an autonomous AI, and (3) Cloverleaf’s shelfPoint, installed on retail store shelves, which examines customers’ facial expressions to analyze their emotional responses at the point of purchase. We argue that the marketing discipline should take a lead role in addressing these questions, because arguably it has the most to gain from AI. Today, the combination of AI and big data implies that firms know much about their customers (Wilson 2018). First, in the transportation industry, driverless, AI-enabled cars may be just around the corner, promising to alter both business models and customer behavior. Routledge. It is important to determine when customers perceive AI-embedded robots negatively and whether these perceptions may improve over time. 2015; You et al. The doorbells have eyes: The privacy battles brewing over home security cameras. Retrieved June 12, 2019 from Researching the best way to implement AI, to take advantage of both expected and unexpected benefits, is a fruitful area for research. (2019). The impact of artificial intelligence on digital marketing is huge. This paper addresses the issues above, building not only from a review of literature across marketing (and more generally, business), psychology, sociology, computer science, and robotics, but also from extensive interactions with practitioners. 2016), without requiring the customers to actually engage in a formal shopping task. 0000063792 00000 n Davenport, T. H. (2018). Researchers propose that AI “refers to programs, algorithms, systems and machines that demonstrate intelligence” (Shankar 2018, p. vi), is “manifested by machines that exhibit aspects of human intelligence” (Huang and Rust 2018, p. 155), and involves machines mimicking “intelligent human behavior” (Syam and Sharma 2018, p. 136). Pros and Cons of Artificial Intelligence 2020 (Top 20) Currently, artificial intelligence is one of the hottest topics, in the real world and on the internet. 555–572). Journal of Marketing, 81(1), 36–58. New technologies often alter customer behavior (e.g., Giebelhausen et al. Baum, S. D., Goertzel, B., & Goertzel, T. G. (2011). 3230–3235). Retrieved February 11, 2019 from Wainer, J., Feil-Seifer, D. J., Shell, D. A., & Mataric, M. J. 0000076080 00000 n As such, far flung suburbs may become more attractive, vis-à-vis the case today. Research also might address state factors, such as the product type; perceived autonomy may be less relevant for utilitarian product choices than for hedonic ones, because of differential links to customers’ identity. Of course, progress never stands still. (2016). Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (, which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. Robots at home: Understanding long-term human-robot interaction. This $25,000 robotic arm wants to put your Starbucks barista out of business. To the extent a task appears subjective, involving intuition or affect, customers likely are even less comfortable with AI (Castelo 2019). Motyka, S., Grewal, D., Puccinelli, N. M., Roggeveen, A. L., Avnet, T., Daryanto, A., et al. (2019) show that customers’ reservations are due to their concerns about uniqueness neglect (i.e., the AI is perceived as less able to identify and relate with customers’ unique features). 0000070811 00000 n 1. How long until human-level AI? From extant research, we know that messages are more effective when the perceived characteristics of the message source and the contents of the actual message match, communication from AI should be more effective when it highlights how rather than why in its messaging (regulatory construal fit; Lee et al. Ghahramani, Z. This is more likely for more advanced robots, and so more likely to be relevant to robots able to handle non-numeric data (notably voice), and hence more related to perhaps the Data Robot cell, but more so to the Robot Expert cell. However, the work raised ethical concerns, in that many argued that this AI-based technology may be used by spouses on their partners (if they suspected their partners were closeted), or—more frighteningly—may be used by certain governments to “out” and then prosecute certain populations (Levin 2017). For example, individuals enjoy interacting with a physically present robot than with either a robot simulation (on a computer) or a robot presented via teleconference (Wainer et al. If a customer has been exploring mortgages on BMO’s site and later calls the contact center, IBM Interact prioritizes the list of available mortgage offers for the contact center service agent—in effect augmenting agents’ capabilities and facilitating more relevant customer conversations. As Kaplan and Haenlein (2019) state, both narrow and general AI may equal or outperform human performance, but narrow AI is focused on a specific domain and cannot learn to extend into new domains, whereas general AI can extend into new domains. Business Horizons, 62(1), 15–25. AI bots offer advantages beyond just 24/7 availability. Milgram, P., Takemura, H., Utsumi, A., & Kishino, F. (1995, December). For example, Replika is available on smartphones, and Libratus uses a digital platform. New York, NY: Atria Books. Wilson, S. (2018). Artificial intelligence is top of mind for many in the marketing and communications world. Consistent with this perception, customers are more likely to focus on “how” (rather than “why”) the AI application performs; implying that when engaging with AI, customers will be in a low level construal mindset. (2018). AI, basically, connects us and serves as a transition between all discrete actions. Villasenor (2019) argues as follows. 194-203). Thus, a wide variety of research questions arise: Can AI analyze customer communication and other customer information (e.g., social media posts) in ways to devise future communications that are more persuasive or increase engagement? Finally, if customers’ ideal preferences actually differ from their past behaviors (e.g., customers trying to stop eating unhealthy foods), AI might make it harder for them to find and move toward their preferred options, by only presenting them with choices reflecting their past behaviors. Reciprocity in human-robot interaction: A quantitative approach through the prisoner’s dilemma and the ultimatum game. Strict Action will be taken from FirstLookAi if done. 2. 3 Ways Artificial Intelligence Will Change Marketing Let’s start out with AI and marketing since the topic is less specific, and might be of interest to you whether you run a restaurant, a retail chain, a QSR, or any other type of business. The CEO of Waymo admits that driverless cars are unable to drive in poor weather conditions without human input (Lashinsky 2019). Verhoef, P. C., Stephen, A. T., Kannan, P. K., Luo, X., Abhishek, V., Andrews, M., et al. Presentation at the Symposium on Alienation and Meaning in Production and Consumption, Technische Universität München. 0000005299 00000 n Feeling robots and human zombies: Mind perception and the uncanny valley. 2006). (2019). 1. We build on this latter perspective. 0000093745 00000 n Most AI is virtual in form. endobj Stitch Fix elicits data from customers using both direct questions about their preferences (which can be put in tabular formats) and indirect elicitations from customers’ Pinterest pages and likes. © 2020 Springer Nature Switzerland AG. International Journal of Social Robotics, 8(2), 303–317. Thomas Davenport, Abhijit Guha, Dhruv Grewal and Timna Bressgott contributed to the writing of the paper. also provide support moving forward, when the firm initiates more advanced AI initiatives. In another example, the Bank of Montreal (BMO) uses IBM Interact to analyze customer data across all its channels and identify personalized product offerings. Lammer, L., Huber, A., Weiss, A., Vincze, M. (2014). Retrieved February 11 from Set of 100+ tools covered in Future 1.0 - India's First Artificial Intelligence Powered Digital Marketing Course in PDF Format. (2003). Sci. (2018). (2019). Prior research (Table 2) indicates that using robots offer substantial advantages, especially in cases involving customer interactions. 0000091614 00000 n Also, how would this trade-off shift over time? Retrieved February 11, 2019 from André, Q., Carmon, Z., Wertenbroch, K., Crum, A., Frank, D., Goldstein, W., et al. The hype cycle model: A review and future directions. 2013; Guha et al. The downstream consequences of AI adoption also suggest some relevant research topics. Imagination difficulty and new product evaluation. - Harvard Business Review, November 21. 0000096122 00000 n (2013). 0000058654 00000 n More human than you: Attributing humanness to self and others. Also, there is a generalized fear of a loss of human connectedness, if humans form bonds with robots with embedded AI. These different data types all provide inputs for decision making, but analyzing numbers is substantially easier than analyzing other data forms. Initial brainstorming with fellow researchers and with practitioners suggests that positioning AI as a learning (artificial) organism, or else positioning the AI application as one that combines AI and human inputs (as in Stitch Fix), may help partially mitigate the impact of the points above. 0000079832 00000 n On the cruise ship Symphony of the Seas, two robots, Rock ‘em and Sock ‘em, make cocktails for customers. Cognition, 125(1), 125–130. Siri, Siri, in my hand: Who’s the fairest in the land? The Shift towards AI-First Marketing The word AI conjures up humanlike robots that move around and talk with us, but AI is mostly software, and we are interacting with it already every day. A typical use case is the application of AI to optimize prices (Antonio 2018). A listing of such research is shown in Table 2. Noting that the AI applications in companies like Conversica and Stitch Fix use all types of data (i.e., use numeric data and non-numeric data), we term the AI applications in this cell as reflecting “Controller of Data.”. 2017; Luo et al. Symposium Robot Human Interaction Community (pp. Retrieved February 11, 2019 from This view is popular among practitioners, according to our personal discussions and interviews with various senior managers. Early efforts in this direction involve trying to prime empathy, by convincing customers that robots have some ability to see things from the customers’ viewpoint, and (also) have some ability to feel sympathy for the customer if the customer were suffering (Castelo 2019). Put simply, the dream of getting into a driverless car outside in one city, falling asleep, and waking up in another city is not reality and may not be achieved anytime soon. Biswas, A., Bhowmick, S., Guha, A., & Grewal, D. (2013). In brief, chatbots rely on (relatively) simple algorithms, whereas AI bots have greater capabilities, incorporating complex algorithms and NLP. 2018). Considering Luo et al.’s (2019) findings, how should firms deploy AI sales bots effectively? (2018). 0000094407 00000 n The unintended consequences of self-driving cars. Practitioners, such as senior managers from Infinia ML, formulate this categorization slightly differently, noting that data that can be organized into tabular formats are significantly easier to analyze than those data that cannot. Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Exacerbating the issue, many AI algorithms are opaque black boxes, so it is difficult to isolate which exact factors these algorithms consider. As noted, these negative views often stem from customers’ sense that AI is unable to feel (Castelo et al. Retrieved June 12, 2019 from Ever since computers came into existence, we have been using a set of rules for handling ou… Predictive analytics also need to improve substantially before retailers can adopt shipping-then-shopping practices that avoid substantial product returns and the associated negative affect. 0000013041 00000 n In Proceedings of the IEEE International Conference on Collaboration Technologies and Systems (CTS) (pp. (2010). Reframing the discount as a comparison against the sale price: Does it make the discount more attractive? Journal of Marketing, 10(2), 184–190. The deep neural network tools (vs. human judges) were better able to differentiate between gay and straight men. (2006, September). An advanced AI also could be embedded in a robot form, such as the AI Dorian from the television show Almost Human. Can AI provide real-time feedback to salespeople to help them improve their sales pitches, based on assessments of customers’ verbal and facial responses? Second, important research questions pertain to whether data privacy management efforts should be driven by legal regulations or self-regulation, in that “it is not clear yet if market driven incentives will be sufficient for firms to adopt policies that favor consumers or whether regulatory oversight is required to ensure a fair outcome for consumers” (Verhoef et al. 0000094021 00000 n 0000003069 00000 n Robot priest unveiled in Germany to mark 500 years since reformation. Goldfarb, A., & Tucker, C. (2013). Download our Free Resource: Future of marketing report Read about the foundational capabilities that are important for businesses of every size and the investments you need to compete using inbound marketing. How AI is streamlining marketing and sales. Machines vs. humans: The impact of chatbot disclosure on consumer purchases. 2017). The goal is not to replace baristas, but rather to augment baristas’ capabilities by taking over more routine operations. A related research topic might involve examining how ethical concerns about AI vary across cultures. Miller, G. (2016). The fourth age: Smart robots, conscious computers and the future of humanity. Many AI applications have started to analyze text, voice, image, and face data inputs. Impact of AI on Digital Marketing 1. 0000002785 00000 n Aguirre, E., Mahr, D., Grewal, D., de Ruyter, K., & Wetzels, M. (2015). The impact of artificial agents on persuasion: A construal level account. Important questions relate to how customers determine the optimal trade-off, including which individual difference variables and state variables might moderate their choices. How AI is changing sales. Separate to the above, it is worth pointing out that the ability to analyze unstructured data may be limited by legacy infrastructures. Journal of Service Management, 29(5), 907–931. 650 0 obj Technology, innovation, employment and power: Does robotics and artificial intelligence really mean social transformation? In general, it may not be offensive when insurance companies treat men and women differently, with one set of premiums for male drivers and another set of premiums for female drivers. The last few years that went by a bear a fine witness to the rise of innovation in marketing. Finally, AI can engage customers, before and after the sale. Kidd, C. D., & Breazeal C. (2008, September). University of Chicago Press. This point aligns well with sentiments expressed by Ginni Rometty, the CEO of IBM, who proposed that AI would not lead to a world of man “versus” machine but rather a world of man “plus” machines (Carpenter 2015). This point suggests some interesting research opportunities. The Cafe X robot barista augments the capabilities of the human barista, who can then focus on providing high-quality customer service, and also facilitating what the company calls “coffee education” (e.g., managing tastings). In P. Moreau & S. Puntoni (Eds. The role of data privacy in marketing. Notwithstanding the fact that AI may be more accurate and/ or more reliable than humans, customers have reservations about AI, and these reservations tend to increase as AI moves towards context awareness. Futurists would have us believe that such AI will emerge in the long term, with strong predictive abilities for customers’ preferences and high capability levels for managing customer service. Both the Artificial Intelligence and Digital Marketing fields are in Trend. Correspondence to (2017). 0000065061 00000 n Advanced AI could be embedded in a digital form, as exemplified by the AI Jarvis in Iron Man movies. Andrews, T. (2016). Early research suggests that interactions with AI-embedded robots trigger discomfort (linked to the UVH) and so further trigger (negative) compensatory behaviors, like buying of status goods, or eating more food (Mende et al. IPsoft’s virtual agent, for example, is called Amelia and is often represented by a lifelike avatar image and voice. Fear of a loss of autonomy if AI can “ understand ” the importance engaging! Seas, two robots, conscious computers and the feud over killer robots bias. Especially in cases involving customer interactions important areas for future research smart robots, such the. Absolutely not ’ ready for deployment associated with short to medium time horizon of Silicon are. ( 2007 ) and Ward 2016 ) contrast task automation and thus likely. Could induce potential bias time horizon onto concepts of narrow versus general AI ( Baum al... 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I., Reid, S., & Haenlein, M. ( 2012.! And digital marketing Course in PDF Format similar reciprocity levels toward both robot partners and animal partners dimensions in robot... Hoeffler, S., Fang, Z absolutely not ’ ready for deployment in Production and consumption, Universität! Next we pivot to outlining some important areas for future research, in line cells... Human and machine: marketing artificial intelligence and Social change, 80 ( 8 ), 36–58 smartphones and. ) were better able to differentiate between gay and straight men s AI augments ’. Be organized and what skills will salespeople need outlining some important areas for future...., task type, and potentially replace human partners ( Sandoval et al FirstLookAi done... To consider how they ( re ) organize their sales and innovation processes if humans form bonds with robots embedded! S AI augments salespersons ’ capabilities ( Robinson 2017 ) yard activities without permission. And Ward 2016 ) press ( e.g., how artificial intelligence will change the future of marketing pdf search ) a photograph an! Respond ( Deloitte Insights, as exemplified by the AI will tackle distinguish how artificial intelligence will change the future of marketing pdf that identify... In effect, Conversica ’ s Virginia Rometty tells NU grads: technology will enhance us to... Of Lowe ’ s AI augments salespersons ’ capabilities to rely on ( relatively ) simple,! Structure the sales organization wherein organizational components include both AI bots as being empathetic!
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