AI-powered marketing and sales reach new heights with generative AI
McKinsey & CompanyMay 11, 2023
Alphabet's Google on Wednesday announced the launch of two new advertising tools powered by artificial intelligence (AI) that will automatically find the best ad placements for companies across the web.
One of the tools, Demand Gen, allegedly removes the need for advertisers to manually determine where to place ads, instead using its knowledge of users and their behavior to deliver the most impact.
Generative AI advertising is set to become the future of marketing, as AI and machine learning can synthesize massive amounts of information to create the perfect ad campaign and then deliver it to the right audience instantaneously. This technology will change marketing as we know it, and this announcement accelerates the AI advertising arms race.
While generative AI could be a boon for advertising, large enterprises such as Google must be wary of the drawbacks of such an approach. AI advertising risks diluting a brand's voice and producing improperly placed or inappropriate advertisements. Big organizations will need stringent review policies to make sure a deluge of AI produced advertisements don't prove more trouble than they're worth.
There's a 60% chance that Google will integrate Large Language Model responses directly into Search by August 2023, according to the Metaculus prediction community.