By Sandeep Kumar, Last Updated:
April, 23, 2021
In the world of media and marketing, AI is speeding up the communication processes by analyzing day-to-day data.
The history of artificial intelligence (AI) can be traced back to 1955 when Herbert Simon and Allen Newell developed the Logic Theorist. It was the world’s first artificial intelligence program that proved thirty-eight out of fifty-two theorems in Whitehead and Russell’s Principia Mathematica. But with the advancement in technology, AI has evolved, and today is using advanced machine learning techniques—AI can drive/control cars, educate the masses, create softwares, and send messages on our behalf.
In media and marketing, AI is speeding up the communication processes by analyzing day-to-day data generated by millions of online customers. Hence, using it to create personalized messages and targeted advertisements.
Tasks that require less human supervision, such as data analysis, processing of natural language, media buying, customized content generation, automated decision making, and real-time updating of data, are now carried out by AI with maximum efficiency.
Today, major marketing agencies and brands around the world use AI marketing tools to optimize their practices and achieve their marketing goals.
Sources: Forbes; Social Media Strategies Summit
Companies worldwide are tapping on the potential of AI to optimize their business operations and perform better than their competitors.
For example, Starbucks, the world-renowned coffee chain, uses analysis that denotes predictive AI capabilities to offer its customers personalized customer service and targeted offers. The company collected user data through its loyalty cards and mobile applications to apprehend and predict individual customer behavior. Marketing messages are curated to meet their customers’ needs and expectations. Suppose they are about to enter a Starbucks coffee shop in the next 10 minutes (locations are tracked via the installed mobile applications on customers’ smartphones). In that case, a customized message will be delivered to inform the customer about the latest discount deals, offers, and menu updates.
Sources: Aberdeen; Social Media Strategies Summit
A Data Analytics and Marketing firm, Aberdeen, conducted research that indicated that when companies use AI technology for predictive marketing, they can increase their organic revenue by 21 percent every year. On the other hand, companies that don’t take advantage of predictive marketing can only drive their revenue up by 12 percent.
Sources: Tech Jury; Prophet; DataProt
The usage of AI-powered voice assistants has increased to such heights that only 2 percent of iPhone users have never used Siri to assist them with their voice searches. While 4 percent of Android users never used Google assistant to search for things online.
Furthermore, 51 percent of people actively use voice assistants in their car for navigation, to answer calls, and hear messages. Whereas 6 percent use the virtual voice assistant in public, and more than 1 percent people use it at work.
By all means, it can be stated that 97 percent of smartphone users have used AI-powered voice assistants on their phones. Simultaneously, the rest of the consumers use other devices like smart speakers and smartwatches for connecting with AI-powered voice assistants like Alexa and Google Home.
Sources: Review42; Vox
Advanced AI, which is now available in Siri (a virtual voice assistant for Apple users), allows people to navigate and chart their routes on the road. The incredible power of AI uses global positioning systems to monitor traffic on the road in real-time. Notifications are sent to the users who are using Siri for navigation, and suggestions allow users to take alternate routes with less traffic to reach their destination on time.
Google maps (a navigation app for Android users) also offers the same services and can tell you how long it will take to reach the desired destination with the current traffic conditions.
Sources: SelectHub; The Cowboy Channel
Following the collected AI marketing statistics, Gartner estimates, by the end of 2021, the CRM market (worldwide) would grow by almost 14 percent (CAGR).
The customer relationship management (CRM) software allows marketers and brands to speed up and enhance customer relationships by integrating social media communication into marketing analysis and helping marketers monitor their online activity.
All information such as looking up their history, past purchases, current interests, and contact information is collected and stored on the CRM system.
Sources: Super Office; Reve Chat
In 2020, it was found that 56 percent of companies worldwide were using CRM systems to comprehend their consumer base, improve their customer experience and stay ahead of the competition. But in less than one year, the percentage has gone up from 56 percent to 74 percent. Therefore, 74 percent of small, medium, and large business associations use CRM tools to monitor consumer behavior and collect all the necessary information.
The most attractive feature of CRM is the ability to connect various departments of a company such as marketing, sales, customer service, and allows them to communicate effectively with the help of notes, calls, and charts. This way, all departments are aware of everything that goes around, regardless of whether there’s an issue, someone filed a complaint, drop in sales, etc. Consequently, they’ll be able to tailor their service according to the customer’s feedback.
Online streaming services like Netflix, Hulu, YouTube, and Amazon Prime all use AI to track their users’ interests and recommend them similar content they believe the users will be interested in.
However, these recommended videos, movies, and shows didn’t resonate well with the viewers. Therefore, a Statista survey stated more than 25% of US adults weren’t happy with the recommendations, as AI kept suggesting them the same videos, TV shows, or movies all over again. In contrast to this, over 20% of respondents said their web streaming services had a mind of their own about what they should watch, opposed to what they want to watch.
Sources: VWO; Digital innovation and Transformation; McKinsey
Netflix heavily relies on AI technology to customize the streaming experience for each of its users. It uses data such as viewing history, search history, date, time, location, and ratings to suggest to its users what they should watch next. There are even records about the type of device used to access Netflix.
You may didn’t know this, but Netflix isn’t reserved only for smart TVs—it’s also compatible with smartphones, tablets, and PCs.
In 2014, Netflix used almost 77.000 “altgenres” or different methods to gauge what movies or shows it should recommend to each of its viewers. The smart AI algorithms were used to customize the recommendations for all users to increase customer satisfaction and retention. The idea behind using AI for auto-generating a recommended playlist is to ensure that users are hooked on to the platform and “binge-watching” increases.
For instance, Amazon too uses AI to suggest similar products to its users. The company states that around 35% of its sales come from the suggested products or AI recommendations.
Sources: Bloomberg; Yahoo! Finance; CNBC
In 2014, Google came into possession of the UK-based AI lab called the DeepMind, for £400 million. The company has been involved with the research and development of AI for Google’s various services like Google Assistant, Google Maps, Google search results, YouTube recommendations, etc. All these were developed to solve many of the problems that customers face and to ensure the customer experience for each of Google’s users is tailored to meet their unique needs.
For example, even if 5 different users are entering the exact keywords in the same order on Google’s search engine, their results will still be different based on their search history, viewing history, and location.
But even after the milestone success of Google’s AI-powered services, DeepMind lost about £477 million due to test results failure. However, Google pledged its support for the company’s R&D department and waived off $1.5 bn in loans to keep the company afloat.
Sources: Statista; The EurAsian Times; Statista
Amazon is the biggest online retailer in the USA, and in 2019, its net sales reached USD280.5 billion.
However, outside of the US, Amazon faced increased competition from other online retail giants like Alibaba, eBay, and Flipkart. Amazon has a market share of around 38% in the USA. It actively implements AI technology to customize the online experience for its users by monitoring their search and purchase history.
Amazon remains one of the trusted online retail stores with on-time delivery and flexible refund policies for most Americans. Yet, nearly 60% of them prefer purchasing goods from either Walmart, eBay, and Target Corporation or directly from the manufacturers’ websites.
Outside of the USA, Amazon ranks much worse in terms of its market share. For instance, in Europe, Amazon has a market share of barely 10%. Opposed to countries like Asia and India, where its market share is the highest— 31.2% market share in India which is a bit less than 1% than its biggest competitor, Flipkart (owned by Walmart).
Websites offering customers flight ticket comparisons and the cheapest flight available for their selected routes use AI technology to do so.
For example, websites like Skyscanner, Farecompare, Kayak, Expedia, Cheapflights, and CheapOair use AI algorithms to search for available flights on selected routes and dates and generate a comparison table along with the airfares. As usual, the cheapest flights are listed on the top, and in increasing order. The website allows you to purchase air tickets directly from the website.
It’s no surprise how websites work in general—their ability to store caches and cookie usage enables them to offer their customers precisely what they want to find.
For example, if an overseas student used Farecompare twice to book his flight to and from his home country to his host country, the website will take a note of it and suggest the cheapest flight he can take (around the same time next year alongside the same route).
In the circumstances like these, timely and relevant push notifications can lead to successful sales, and as the Forbes article suggests, it can drive sales up by more than 20%.
In a report by Valassis, it was found that by 2019, over 90% of consumers around the world had used a coupon at least once in their life. Further data revealed 30% of the Millennials who do online shopping always use a coupon to avail themselves the of discounts deals and shop for their liking products and services. Whereas 50% of customers agreed they’d like to get coupons and discount deals in their mail.
Users can make direct use of coupons or discount codes and purchase products from their websites. For example, ShopatHome offers discounts and gift cards for Amazon, Walmart, Groupon, eBay, Macy’s, etc. Hence, users can use these to shop at their online stores. They also have a cashback policy, and for every dollar that you spend on these online retail stores, ShopatHome will give you back the money through your online account. You will either receive the money in the form of a cheque, PayPal, or Amazon gift card.
The website uses AI to monitor your online shopping history and see what products you frequently search for and what online retail stores you visit often. Based on that, it suggests the best coupons and discount deals for products or online retail stores. In 2019 alone, 31 billion digital coupons were redeemed.
And if you wonder how these websites and their online retail partners make money, then it’s because more than 75% of consumers spend between $10-$50 more than the intended expense when redeeming coupons. They end up buying something a lot more expensive than what they had initially decided to purchase just because they have a 20% or 50% discount card.
Sources: Oberlo; CONTECH; VentureBeat
Let’s look at this brief breakdown (2015-2020):
Sources: Oberlo; Fortune Business Insights; World Economic Forum; MarketWatch
The adoption of AI in businesses, as well as for personal use, is increasing rapidly around the globe.
Millions of mobile applications such as food delivery brands like Food Panda and car ride services like Uber and Lyft use AI to customize services for their users and improve their users’ interaction with the brand.
The usage of AI is predicted to increase significantly by 2027, and it is expected by then the same to reach its peak (so far) of $267 bn and CAGR of more than 31 percent, as more and more companies will be using AI software for their business. Compared to 2019, when the value of AI market size in the USA was more than $27 bn.
In the meantime, in the USA, several pilot projects are being run with the partnership of the healthcare industry and major pharmaceutical companies. For example, machine learning is being used to detect cancer cells—if this project is a success, millions of hospitals worldwide could purchase AI technology to help cancer patients.
One more critical piece of information is the mere fact that globally, it is expected by 2027, the artificial intelligence chips (modules that handle numerous computing tasks all at once) market value will have reached over $50.000MM.
Sources: Forbes; iot for all
As if the Covid-19 pandemic isn’t enough, there are another ‘danger’ threatening people’s jobs.
In-depth researches done by The World Economic Forum indicate for a new kind of ‘new generation’ to come and take over matters, i.e., artificial intelligence.
AI is set to replace a more significant portion of what are now job places belonging to humans. And it seems like the coronavirus is just speeding up things for this to happen.
In addition to this, it’s been reported that the United States suffered a loss of more than 60 million jobs (so far). However, the advanced tech will make things even harder, with an estimation of no less than 85 million jobs at the stake of being replaced by AI software.
Sources: CNBC; Forbes; Learning English
In a news report published in 2019, it was speculated that 25 percent of jobs in America could be lost due to automation and AI technology in the coming years.
According to data compiled by Brookings Institute, a think tank in Washington, over 40% of men and more or less 40% of women in the USA would lose their jobs because of machines and AI. It was also reported that people between 16-24 of age run a bigger risk of being replaced by AI. Compared to those who were 65 or older—probably because companies might use their experience with machines and quality checks procedures.
In a Forbes article, it was stated that academics predict by the mid-2030ies, around 50% of American jobs would most likely encounter a high risk of automation replacement due to increased use of AI technology in the production processes. The same article pointed out that women stand a higher risk of losing their jobs based on the current situation since most women hold positions such as secretaries, schedulers, bookkeepers, typists, and customer service operators. Therefore, these are jobs that advanced AI software can easily replace.
Sources: Oberlo; Business Wire
The number of companies investing in artificial intelligence is getting bigger, and the investments are getting more serious. The latest analysis unveiled a figure higher than $50 million to have been already invested. This denotes an increase of more than 60%, opposed to roughly 40% back in 2020.
Another set of AI statistics revealed that at least 9 of the 10 leading businesses in the world have ongoing investments in AI; prominent financial and healthcare companies are investing millions of dollars to research and develop AI technology to help themselves.
Companies like Pfizer, Google, and General Motors are using AI technology to analyze big data more efficiently. They speed up their business operations (data collection, analysis, result generation, and customer communication). Around 27% of these top companies are currently running AI-based pilot projects, and no less than 14.6% have already fully incorporated the technology in their business.
Sources: Statista; Juniper Research
Since their introduction in 2010, digital voice assistants have revolutionized our experience with technology and how we interact with it. Today, voice assistants like Siri, Alexa, and Google Home Assistant are being used in mobile devices and smart speakers to help people perform voice searches and access the data on their phones and the web.
In 2020, slightly more than 4 bn digital voice assistants were being implemented in devices worldwide. However, it is projected that by 2024, there will be nearly 8.4 billion digital voice assistants (more than the total number of people globally) in smart devices like smartphones, smartwatches, smart speakers, and GPS in vehicles. Thus, it was observed that in the USA solely, there were more than 110MM virtual assistant users.
A piece of information worthy of mentioning is that Alexa (2019) became a part of 60 thousand distinctive smart home apparel.
45 percent of online retailers worldwide are using AI or are thinking of using it to improve the multichannel customer experience and engagement.
AI has become a vital part of retailers’ marketing mix. They use it to effectively manage and improve supply chain logistics, management of the supply chain, and business forecasting.
Many retailers said they are attracted to the personalization capabilities of AI and are keen on its adoption in their business model. Therefore, more than 80 percent of the marketing heads agreed AI helps them in improving their customer experience.
A survey by Statista (2019) revealed around 40% of online retail businesses in France are already using AI technology for processing and analyzing big data. On the other hand, over 30% are also using AI for the chatbot feature to increase the engagement on their landing pages.
Source: The Economic Times
Tech experts in India predict the growth of the Internet of Things (IoT) and AI in the next 2 years. It is said that AI will take place all around industries such as manufacturing (automobiles, smart devices, electronic appliances, etc.) and healthcare—there will be a rapid use of IoTs like sensors, embedded software, and trackers to operate them and efficiently manage the data collected from these devices.
Therefore, by 2023, IoT in India could generate more than $11 bn in revenue, and it could significantly transform the business landscape. Together, AI and IoT could reduce the cost of business and lead towards sustainable growth and revenue generation.
Sources: Hurree; Forbes
A study done by Gartner predicted that soon, AI will be the sole author of almost 20 percent of all business content. AI content and essay generators are already becoming popular amongst the student community since students tend to rely frequently on such websites to generate essays and other assignments.
For instance, Grammarly and Becorrect are being used by content writers to correct their spelling and grammatical errors and take their writing up a notch.
Thus, it is believed that AI will take over the business communications and the marketing messages to generate appealing, user-friendly, engaging, and customized content for potential consumers and clients. It has been observed that marketers spend a lot of time on creating ad copies from scratch and personalizing it for their audience segments, but with AI they could let the machine create a general draft and then just fine-tune it for optimal impact.
According to Forbes, over 80 percent of marketers find it hard to create top-quality content because of lack of time or assistance. However, AI could help out with thighs such as these, and that’s why 73 percent of marketers are ready to invest in AI-based communication.
Sources: Forbes; AISEL; Business Wire
Though the investment in AI remains high, as by 2020, and almost 99% of companies were actively investing in AI to create tools, software, and services for them, unfortunately, not all of them have fully implemented AI in their day-to-day production. For instance, it’s been reported that no more than 14.6% of companies are using AI full capability to streamline their production processes.
Furthermore, thirty-four percent of companies situated in the USA, Europe, and China are using AI. Another forty percent are using just a part of the AI technology: virtual assistants, data analytic tools, or chatbots for their businesses.
Sources: Oberlo; Voicefront; eMarketer
The day-to-day usage of voice assistants increases in the USA as the technology is being used in mobile devices like smartphones, smartwatches, smart speakers, and iPads to give users a hands-free experience.
As a result of the increased use, by 2024, the number of virtual assistants is expected to outgrow the global population, and we will have more than 8 billion virtual assistants. That being said, it leaves us with an increase of around 150%, from 2019 estimation of more than 3 bn.
Just in the USA, around 110 million people use virtual or voice assistants to search for data on their phones and the web. The most common use of virtual assistants is for online shopping, and over 40% of the people who use a voice-assisted device are between 45-60 of age.
One of the reasons may be that, unlike millennials and generation Z, baby boomers (generation X) avoid the hassle of going through multiple websites to search for a product they like; this is why they prefer virtual assistants.
Sources: Vox; Policy Advice; Interesting Engineering
Despite differences of opinion between manufacturers of self-driving cars like Tesla, more accidents are caused, and more lives lost because of human error. However, studies confirmed the opposite. Currently, self-driving cars are 10 percent safer than regular cars.
Nonetheless, there is still a discrepancy in the results so tremendous that self-driving cars have to undergo a drive of hundreds of miles before proper assessments of their safety can be made.
This is primarily because, in the USA (2017), there were 1,16 deaths on each hundred million miles driven throughout the country. Whereas there are only 1,400 self-driving cars in the USA, more data, cars, and more time is needed to assess their safety.
Gartner conducted a survey that found over 50 percent of high profile companies with annual turnovers of more than $750MM using AI technology to gather data on their employees’ activities and performances for increased accountability and productivity.
Sources: AI Multiple; Forbes
Around 40% of the organizations in the world have adopted AI technology (2019). With that said, over 28% of manufacturing businesses use AI in their maintenance departments and over 25% in their quality departments.
Sources: AI Multiple; Zoominfo Blog; Ideamotive
Over the years, businesses have realized the power and potential of AI to streamline costs and increase user engagement. As a result, more than 80% of companies nowadays are more than sure that using AI for their business operations is their top priority. This is why in the coming years, they are planning to invest heavily in AI technology.
Sources: Al Multiple; Business Wire; Globe News Wire
Several big data companies worldwide effectively collect, analyze and represent big data to understand industry trends and the ever-evolving social trends and practices. With that in mind, almost all (90 percent) of professionals and analytics stated the key to digital conversion lies in the data and analysis gathered. Besides the standard big data tools and software usage, around 60% of these companies are also using AI technology—such as voice recognition and response solutions to improve security and save time on creating general responses.
Sources: AI Multiple; The Economist
Harvard Business Review stated no less than 36% of top-level executives are interested in using AI—because they are confident it will optimize their internal business operations. Moreover, they want to capitalize on and increase their employee productivity by freeing them from tedious, repetitive, and mundane tasks. Instead, they can utilize their skills on work that machines, such as creative thinking, cannot perform. And almost 80% of the managerial staff agree that AI solutions implementation would ease their work.
Sources: AI Multiple; Accenture
By the end of 2021, the AI healthcare market will reach more than $6 bn. Also, the number of healthcare services adopting AI tech will mark a significant increase. Many hospitals around the world are already using smart cards to store their patients’ information and medical history.
AI technology has a major role in diagnosing diseases, collecting, organizing, and storing lab test results. AI also contributes to the healthcare industry in running computerized tests on test subjects to predict the evolution of a virus, bacteria, and other disease-causing microorganisms.
Sources: AI Multiple; Capgemini
In addition to that, 30 percent of Japanese and nearly 30 percent of American manufacturers are also using AI.
The manufacturing industry can benefit from AI technology since quite a few manufacturing processes (product assembly, heat tests, data recording, etc.) can be automated and handed over to AI. Over 42 percent of people from the manufacturing industry believe that AI should be made an essential part of the automotive industry. It can speed up the assembly process by 25 percent.
Sources: AI Multiple; Venture Harbour; Open Text
80 percent of bank executives are aware of the power of AI technology. Moreover, 75 percent of the world’s biggest banks are already implementing AI strategies in some manner or form.
Furthermore, according to Accenture, AI technology in present days can optimize business productivity by 40 percent.
Meaning, by 2022, at least 90 percent of the banks worldwide will be using a chatbot on their websites to increase user engagement.
Sources: AI Multiple; Juniper Research
Many insurance companies around the world lose money on insurance claims simply because proper safety, security, and health monitoring systems are not in place. But if AI-powered tracking devices, heat sensors, security alarms, and smart home solutions were installed in cars and homes, the accidents can be prevented before they occur.
Similarly, if AI technologies that constantly monitor a person’s health are used for patients, insurance claims on major surgeries could be avoided.
Sources: Fortune Business Insights; ET CIO.com; SpringerLink
During the Covid-19 pandemic, AI can help the healthcare industry effectively diagnose, treat, and predict the outcome of the disease. Since hospitals and healthcare workers are burdened with examining and treating 1000s of patients per day, AI technology will undoubtedly come in handy.
In India, a healthcare provider known as Aster DM connects all his hospitals (thirteen of them) with AI solutions to provide timely treatment.
Furthermore, AI technology can also detect the COVID virus in humans and send fast results to the patient.
For example, Tata Consultancy Innovation Lab (India) uses AI to identify the molecules that can target and kill the Covid-19 strains, which means that AI could be used to develop drugs effective against the coronavirus.
Whether in marketing, business communication, the healthcare industry, the manufacturing industry, banking, or online streaming services – AI is rapidly transforming the consumer experience by offering specialized services.
In the upcoming years, AI will become an essential part of business operations. More and more users will enjoy receiving products and services specially tailored to meet their needs. I hope you enjoyed and learned a lot more about the AI marketing statistics all-in-all by choosing to stay with me throughout the article.