GenAI fuels marketing efficiencies despite limitations and challenges

The news: Artificial intelligence helped reduce Klarna’s sales and marketing spending by 11% in the first quarter, even as it launched more campaigns.

• AI saved Klarna about $10 million annually, the buy now, pay later provider noted. It uses AI for copywriting, generating images, and other tasks.
• The company cut external agency expenses by 25% and credited AI with making it “leaner, faster, and more responsive.”

Time and task saver: Klarna’s moves reflect a broader trend. Marketers are embracing generative AI for content creation and time savings, our report explains.

• Over half of marketers use genAI tools for website content, email copy, and social media, per a September 2023 CMO survey from Deloitte, Duke University, and the American Marketing Association.
• They’re also using genAI to create text and designs for ads, per the survey.

But integrating AI is not without challenges. Concerns about copyright infringement, privacy, and misinformation persist.

Our take: The efficiencies that genAI delivers showcase its transformative potential in marketing.

However, human oversight remains crucial for quality control and ensuring content aligns with brand standards. Marketers need to set clear guidelines for genAI use to address ethical and legal issues.

Go deeper: For more on the promises and perils of genAI’s use in marketing, read our GenAI and Social Media Marketing report.