AI in Digital Marketing in 2023:What to Expect in the First Year of the AI Revolution (and How to Harness it)

AI (Artificial Intelligence) significantly impacts digital marketing, empowering greater audience targeting, content creation, search engine optimisation, email marketing, social media marketing, and customer service. The influence of AI in digital marketing continues to grow at an unprecedented pace. Worldwide, businesses are widely adopting AI-powered tools and applications to improve their marketing strategies and stay ahead of the competition.

Below, we explore the latest developments in AI for digital marketing and how they are transforming the industry in 2023. We will delve into the benefits of AI in digital marketing, its challenges and limitations, and the future possibilities it holds for marketers. Whether you’re a marketer, business owner, or simply curious about the latest technological advancements in digital marketing, this blog post is for you. So, let’s dive in and discover the potential of AI in digital marketing.

Estimated reading time: 15 minutes

What is AI?

AI (Artificial Intelligence) is a computer system that can perform tasks that typically require human intelligence, such as visual perception, speech recognition, decision-making, and language translation. These computer systems can analyse large amounts of data, learn from that data, and make predictions or decisions based on that learning.

Algorithms and machine learning techniques power AI, allowing computers to recognise patterns in data and make predictions or decisions based on those patterns. Deep learning, a machine learning type involving artificial neural networks, has enabled computers to recognise and understand images and language.

Large language models are one form of AI currently gaining popularity. A large language model is an artificial intelligence system trained to understand and generate human language. These models use deep learning techniques, such as neural networks, to analyse vast amounts of text data and learn patterns in language usage.

The term “large” refers to the enormous amount of data and computational resources needed to train these models effectively. The larger the model, the more parameters it has, allowing it to capture more complex patterns in language and generate more accurate responses.

Large language models apply to numerous applications, such as language translation, sentiment analysis, chatbots, and text generation. One example of a large language model is GPT-3, which has 175 billion parameters and can generate highly realistic, human-like responses.

AI has many applications, including natural language processing, computer vision, robotics, and autonomous systems. In addition to its use in digital marketing, AI is used in healthcare, finance, transportation, and many other fields to automate tasks, improve efficiency, and make more accurate predictions.

Why is AI booming now?

Several key factors have contributed to the boom in AI (Artificial Intelligence). One of the main reasons for this is the increasing availability of large data sets that can train AI algorithms. The proliferation of technology and its growing accessibility have resulted in an exponential growth of information generated every second. The lower cost of storage in the cloud has made it more practical to store these data sets.

Another factor contributing to the growth of AI is the availability of more powerful computing systems. AI algorithms require significant computing power to process and learn from large amounts of data. Advances in computing power have made it possible to train AI algorithms more quickly and efficiently, enabling the development of more sophisticated AI systems.

The COVID-19 pandemic has also accelerated the adoption of AI by businesses. As the pandemic forced many companies to transition to remote work, they turned to AI and automation to help streamline their operations and improve efficiency. The World Economic Forum reports that more businesses are speeding up their plans to adopt AI and automation in the wake of the pandemic.

Over the past few years, we have seen huge advancements in AI, including the emergence of many generative AI models. Generative AI is a type of artificial intelligence that creates models that can generate new data or content similar to what it has been trained on. These models use deep learning techniques, such as neural networks, to analyse patterns in data and generate new content based on those patterns.

Generative AI can be used for various applications, such as creating art, generating music, producing realistic speech, and writing stories or articles. For example, a generative AI model could be trained on a large dataset of images and then used to generate new, never-before-seen images similar in style and content to the original dataset. Some well-known examples of generative AI include Dall-E, a neural network that generates images from textual descriptions, and ChatGPT, which is capable of generating human-like responses to text-based inputs, making it a useful tool for applications such as chatbots, customer service, and automated assistants.

Within two months of launching, ChatGPT reached 100 million monthly active users, making it the fastest-growing consumer application in history. In comparison, the social media app TikTok took around nine months to gain a similar number of users. It took Instagram roughly two and a half years to reach 100 million monthly active users.

The AI research and deployment company OpenAI developed ChatGPT. With ChatGPT, Dall-E, and other AI offerings all developed by OpenAI, they have quickly established themselves as one of the companies leading the charge for AI.

Although OpenAI is now a major AI research organisation, it is not the only one striving to break new ground in artificial intelligence. Numerous other companies and research institutions are dedicated to creating state-of-the-art AI technologies and models. These rivals are instrumental in shaping the direction of AI and promoting progress in the field. OpenAI has several competitors in artificial intelligence, including some of the world’s largest technology companies. Some of OpenAI’s main competitors include:

• Google – One of the largest technology companies in the world with a major focus on AI research and development, Google has developed many well-known AI models and technologies, including TensorFlow, Google Cloud AI, and Google Assistant. Google is now trialling Bard, a generative AI chatbot developed to rival ChatGPT.
• Microsoft – This leading technology company has invested heavily in AI research and development. Microsoft has developed many AI models and technologies, including the Microsoft Cognitive Toolkit, Azure Machine Learning, and Cortana.
• Facebook – The social media giant has also invested significantly in AI research and development. Facebook has developed many AI models and technologies, including the PyTorch framework, Facebook AI Research (FAIR), and Facebook AI Infrastructure.
• Amazon – The e-commerce giant has also made major strides in AI research and development. Amazon has developed many AI models and technologies, including Amazon Machine Learning, Amazon SageMaker, and Alexa.
• IBM – A long-time player in the technology industry that has also been active in AI research and development, IBM has developed many AI models and technologies, including Watson, IBM Research, and IBM Watson Studio.

As AI demonstrates its potential to impact the world positively, we will likely see continued growth and innovation in this field.

Digital marketing use cases

Digital marketers use AI for various purposes, including customer segmentation, predictive analytics, chatbots, content personalisation, and ad optimisation. AI-powered tools and platforms can help marketers analyse vast amounts of data, automate tasks, and deliver more personalised and relevant experiences to their target audiences, leading to better performance and increased ROI. AI can help marketers better understand their customers, improve their targeting, and optimise their campaigns for maximum impact.

As AI technology continues to evolve, we can expect to see even more innovative use cases for AI in digital marketing in the future. Here are some ways that AI will be used in digital marketing in 2023 to improve overall performance and achieve better results:

Audience targeting

AI algorithms analyse user behaviour and data to identify patterns and predict users’ future behaviour. Marketers can use this data to personalise content and target ads to specific groups of people.

Content creation

AI tools can generate content for websites, social media, and email marketing campaigns. These tools use natural language processing (NLP) to understand the user’s intent and generate relevant content.

Nestle, a leading company in the food and beverage industry, leveraged natural language processing (NLP) technology to generate customised content for different audience segments. Leveraging this technology allowed the company to improve its content marketing strategy and tailor communication to its audience.

Email marketing

AI-powered email marketing tools can analyse user behaviour to identify the best time to send emails and what content to include.

Worldwide eCommerce platform eBay is continuously searching for innovative ways to captivate its customers. As a result, it has numerous AI marketing illustrations to exhibit.

From 2016, the organisation collaborated with a customer experience platform fuelled by artificial intelligence to elevate its marketing content, primarily email. The AI deploys language models to produce personalised content aligned with eBay’s brand voice, customer requirements, and particular promotions, which can generate instantly.

Social media marketing

AI algorithms can analyse social media data to identify trends and predict user behaviour. Marketers can use this information to create targeted ads and content for social media platforms.

Customer service

AI-powered chatbots can answer customer questions, provide support, and even process orders. These chatbots use NLP to understand customer inquiries and provide accurate and relevant responses.

The global makeup and beauty brand Sephora has been leading the charge with its AI-driven chatbot that offers its audience the most personalised, informational customer experience possible. Sephora introduced an interactive questionnaire to assist its customers during the shopping experience. This quiz uses chatbots that provide personalised advice and recommendations based on individual answers and feedback. Given the positive reception of the program, Sephora has expanded its chatbot-powered shopping service via Facebook Messenger, contributing to its continued growth and success.

For more use cases, check: AI Marketing Agency: The Best Tools and Strategies

20 AI tools for digital marketing

Several AI tools are available to help improve digital marketing efforts. Some of the best AI tools for digital marketing include:

1. Jasper AI – Jasper AI is an AI-based copywriting tool designed to create compelling copy for various marketing materials, such as ads, landing pages, and blog posts, using only a few brief prompts. The platform promises to significantly reduce content production time, providing users with 100% unique and plagiarism-free content. Jasper AI’s integration with Surfer SEO also allows you to generate exceptional images, long and short-form content, and keyword optimisation features.
2. ChatGPT – ChatGPT is a valuable resource for content creators seeking inspiration, although its outputs are not entirely “original.” Instead, it uses existing content collected from various sources. Nonetheless, the tool can assist you in optimising your content for featured snippets and FAQ-style content, enabling your content to rank higher in search engines. Furthermore, several developers are exploring the potential of this technology in automating routine coding applications and other manual tasks.
3. InstaText – InstaText is an intuitive writing and editing tool that supports users in refining their writing to a professional standard. The platform enhances styling and word choices, corrects grammatical errors, and enriches your content, making it more readable and understandable. Additionally, the tool compares the new and the original versions to illustrate improvements.
4. Semrush – Semrush has created various AI-powered tools to support content marketers in simplifying and enhancing their work. Among these tools is the SEO Writing Assistant (SWA), which enables writers to fine-tune their content according to their chosen keywords and the search engine results page (SERPs). Whether you input your content directly into the Semrush interface or use one of our integrations (including Google Docs, Microsoft Word Add-On, and WordPress plugin), you will receive immediate recommendations for enhancing your content and optimising performance.
5. Customer.io – Customer.io is an AI-powered tool for email marketing that helps businesses create targeted and personalised email campaigns based on user behaviour and preferences. It allows companies to create and manage customer segments, design automated campaigns, and measure their performance with analytics and reporting features.
6. Hootsuite – Hootsuite is a social media management tool that uses AI to help businesses manage multiple social media accounts, track engagement metrics, and identify trends and insights. The platform provides various tools for scheduling and publishing content, engaging with followers, monitoring social media mentions and analytics, and managing advertising campaigns across social media platforms such as Facebook, Twitter, LinkedIn, Instagram, and YouTube.
7. Mailchimp – Mailchimp is an email marketing tool that uses AI to make personalised recommendations for email content, audience segmentation, and send times. Mailchimp allows businesses and organisations to create, manage, and send email campaigns to their subscribers. It provides various features such as email templates, audience management, automation, A/B testing, analytics, and more. Businesses of all sizes use it to engage with their audience through email marketing and build strong customer relationships.
8. HubSpot – Hubspot is a comprehensive marketing automation platform that uses AI to help businesses create targeted campaigns, track leads, and analyse customer behaviour and engagement. The platform offers a range of features such as marketing automation, CRM, social media management, lead generation, lead scoring, and customer service. HubSpot’s CRM allows businesses to manage their customer interactions, track their sales pipeline, and gain valuable insights into their customer data. The platform is used by companies of all sizes, from small start-ups to large enterprises, to grow their customer base and increase revenue.
9. ZoomIQ – ZoomIQ is an AI feature that summarises chat threads and whiteboard sessions within Zoom meetings. It can generate a summary, capture the next steps, and share via Team Chat, Zoom Calendar, and email without recording the conversation, as well as drafting content for chats, emails, and whiteboard sessions, creating meeting agendas, and more. 
10. Midjourney – Midjourney is a highly regarded online platform that provides text-to-image AI services. Utilising Discord, a chat application, users can communicate with the bot to generate visually pleasing images. With an emphasis on user-friendliness, the platform operates through straightforward commands that require no coding experience.
11. Microsoft 365 Co-pilot – Microsoft 365 Co-pilot is an AI chatbot assistant that collaborates with your emails, documents, meetings, and the recently introduced Business Chat service. The unique strength of Co-pilot lies in its ability to merge the potential of large language models (LLMs) with your data from the Microsoft Graph and the Microsoft 365 applications.
12. Bard – Bard is an AI-based chatbot utility developed by Google to replicate human-like conversations utilising natural language processing and machine learning. In addition to augmenting Google search, Bard can be incorporated into websites, messaging platforms, or applications to offer authentic and natural language replies to user queries.
13. Synthesia – Synthesia.io is an AI-driven video production platform that empowers users to generate proficient videos by converting text into speech in minutes. Rather than recruiting actors, deploying cameras, and recording in a studio, Synthesia facilitates the creation of explanatory videos with pre-designed AI avatars and voiceovers. With an expansive library of over 100 languages, users can conveniently amend and modernise their videos.
14. Notion AI – Notion AI is a writing assistant that can help you write, brainstorm, edit, summarise, and more. It streamlines work across multiple departments.
15. Sheet+ – Sheet+ offers many possibilities for using AI inside Google Sheets. Input a description of the formula you require, and Sheet+ AI will generate it accurately within seconds.
16. Luminar – This AI-powered photo editing software uses artificial intelligence for fast and hassle-free photo editing solutions.
17. Taplio – Taplio is an AI-powered tool that can help you enhance your LinkedIn content creation process by generating ideas for your posts. The AI analyses your LinkedIn account and what you like to post about, and then it comes up with LinkedIn posts you can edit and publish.
18. Galileo AI – Galileo AI strives to create one-of-a-kind designs for user interfaces from text inputs very quickly, and you can modify them however you like. It also offers a collection of AI-generated illustrations and images you can use in your product.
19. Aidaptive – Aidaptive is an eCommerce AI platform that automatically personalises the shopping experience for every visitor to your site, driving more conversions and revenue.
20. STORYD – STORYD is a tool that helps users create AI-powered data presentations that are engaging and impactful. It enables users to create presentations quickly that will capture attention and interestingly convey information.

These AI tools can help marketers save time, create more effective campaigns, and improve their digital marketing strategies.

Advantages and disadvantages of using AI tools for digital marketing

Companies use AI tools to improve their marketing game, give customers better experiences, and increase sales. Artificial intelligence has the potential to analyse large datasets, perform intricate calculations, and deliver real-time insights to assist businesses in making informed decisions. However, while using AI in digital marketing has advantages, some drawbacks must also be considered.

Disadvantages of AI tools

• Lack of human touch: AI can automate many tasks but cannot replace human intuition and creativity. Over-reliance on AI can result in generic messaging that lacks the personal touch and emotional connection that human marketers can provide.
• Data privacy concerns: AI algorithms require access to large amounts of consumer data to function effectively, raising concerns about data privacy and security and resulting in customer mistrust and loss of brand reputation.
• Dependence on technology: AI requires complex infrastructure and software to function, which can be costly and require significant investment. Technology dependence can also lead to system failures and downtime, disrupting marketing operations.
• Limited understanding: AI algorithms can only analyse data based on their programming, which may not capture the full complexity of consumer behaviour. This deficiency can result in limited insights and potentially incorrect assumptions.

While AI can offer many benefits to digital marketing, it is important to balance its use with human intuition and creativity and address data privacy and security concerns.

Make the most of AI in your digital marketing strategy

AI has become an indispensable tool for digital marketers in 2023, providing numerous benefits such as better personalisation, more efficient advertising, improved data analysis, and enhanced customer experience. Advancing AI technology will give marketers more opportunities to achieve their goals and drive business growth. Remember, however, that the potential disadvantages and ethical concerns surrounding the use of AI in digital marketing. As such, marketers must balance leveraging AI’s capabilities while maintaining transparency and ethical practices to ensure they provide value to customers while building trust and long-term relationships.

The future of AI in digital marketing is bright, and marketers who embrace this technology will undoubtedly have a competitive advantage in the years to come.