Marketing in the Age of Artificial Intelligence: Applications, Consumer Perceptions and Implications.

Abstract

The marketing landscape has changed enormously since the emergence of Artificial Intelligence (AI). Marketing strategies and consumer experiences are both affected from the changes that AI has provided in the modern marketing era. The main objective of this dissertation is to comprehend how Al impacts the marketing industry, by analyzing its applications, the benefits, and gaps arising from these applications, and by investigating how consumers react to the new marketing landscape. The literature review conducted aims to answer the following questions: What are the applications of AI in marketing? How do consumers perceive these new applications? Is Al effective for the marketing industry? To answer these questions, a systematic literature review of academic journal articles published over the past 2 years was conducted. From the results of the literature review, it is evident that Al has already replaced some traditional marketing activities. As a result, today's modern marketing strategies achieve personalized service, enhanced customer satisfaction, and higher ROI overall. At the same time, marketers can better understand consumers and serve their needs directly, through real-time data analysis, gaining their satisfaction. However, even though consumers are happier, fears about such high Al usage remain. In this new era of marketing, marketers must adapt and recognize the significance of Al in the implementation of marketing processes. Al-generated applications can be cost and time-saving, however, human verification is essential to confirm that all AI- generated processes have the right outcome and are implemented in ethical ways.