6 Marketing AI Predictions to Watch in 2023

AI is no longer a far-off, futuristic technology. It‘s here now, and it‘s rapidly transforming the marketing landscape. Over 60% of companies have adopted AI for at least one business function, and marketing is leading the charge.^1

As we move further into 2023, marketing AI continues to evolve at a breakneck pace. The technology is becoming more sophisticated, more accessible, and more essential for staying competitive.

If you‘re curious about where AI is going in the marketing world — and how you can leverage it for your brand — here are six key predictions to watch this year.

1. Generative AI Will Revolutionize Content Creation

Generative AI is one of the hottest areas in artificial intelligence right now, and it‘s poised to have a huge impact on content marketing in 2023.

Generative AI refers to algorithms that can create new content – text, images, audio, video, and code – based on learning patterns from existing data. 2022 saw an explosion of impressive generative AI tools for all kinds of creative tasks, led by OpenAI‘s DALL-E 2 for image generation and ChatGPT for conversational content.

These AI models are game-changers for content creation. They can generate original, high-quality content from just a simple text prompt, dramatically reducing the time and effort required.

For example, a marketer could input a short description of a blog post topic, and a generative language model like GPT-3 can write a comprehensive draft in seconds. The human writer then simply needs to edit and refine.

Similarly, marketers can create original images, videos or ad copy just by describing what they want to the AI. This AI-assisted workflow enables pumping out volumes of content at scale that would have been unthinkable before.

Expect to see widespread adoption of generative AI tools for content marketing this year. A 2022 survey found that 87% of content teams are already using or plan to use AI writing tools.^2

However, maintaining quality and brand voice is critical. Generative AI works best for initial drafts and ideas – it‘s up to human marketers to fact-check, edit and inject their unique brand perspective.

2. Multimodal AI Will Power Immersive Customer Experiences

Another AI trend that will shape marketing in 2023 is the rise of multimodal AI models.

Traditional AI tends to focus on a single type of data – just text, images, audio or video. Multimodal AI can understand and generate content across multiple modalities simultaneously.^3

For example, an AI model could analyze a video to understand the script, tone of voice, facial expressions, objects shown and background music. This rich, multidimensional comprehension enables creating more interactive, immersive experiences.

Multimodal AI opens exciting possibilities for marketers to engage customers‘ senses across touchpoints. Picture a virtual try-on experience where AI uses computer vision to place a brand‘s clothes on the customer‘s image, with conversational AI to answer questions and recommend items that match their style.

Or imagine an interactive video ad where the viewer can ask questions about the product, and the AI generates clips showing the relevant features in real-time based on the queries.

As experiences become the new battleground for differentiation, multimodal AI will be a key tool for marketers to create integrated digital content that captivates and converts.

3. Hyper-Personalization Will Be Table Stakes

Personalization has been a holy grail in marketing for years. But many current personalization efforts still tend to be fairly surface-level – think adding a first name to an email or showing product recommendations based on past purchases.

In 2023, AI will enable true 1:1 hyper-personalization at scale. Advanced machine learning models can process massive amounts of structured and unstructured customer data to identify patterns and preferences at the individual level.^4

This allows presenting the most relevant content, offer or experience to each customer based on their unique profile. For example:

  • Individualizing the website UX and content based on the visitor‘s demographics, behavior, and inferred intent
  • Delivering the optimal offer and creative for each user to maximize conversions
  • Engaging customers in personalized conversations across channels based on their history and sentiment

With AI, marketers can finally achieve the elusive segment of one – tailoring every interaction to the recipient. This level of relevance is becoming table stakes. 71% of consumers now expect personalization from brands, and 76% are frustrated when it doesn‘t happen.^5

4. AI Will Supercharge SEO

Search engine optimization (SEO) is a domain where AI is already having a significant impact – and its role will only grow in 2023.

AI tools can automate and enhance virtually every aspect of SEO, from keyword research to content optimization to link building. For example:

  • AI-powered keyword tools can analyze search data to uncover granular long-tail keywords with less competition and higher purchase intent
  • NLP algorithms can assess content quality, relevance and readability to guide optimizations
  • AI systems can track backlink profiles and suggest high-authority sites for link building outreach

Beyond assisting human SEOs, AI is also changing the algorithms of search engines themselves. Google has been steadily integrating more machine learning into its ranking system, most notably with the RankBrain and BERT models.^6

These AI algorithms can better understand query intent and page context to deliver more relevant results. They also enable new search features like voice search and visual search.

To succeed in SEO in 2023, marketers need to optimize for both searcher intent and AI algorithms. This means focusing on long-form, semantically rich content that comprehensively answers user questions. It also means structuring data for machine readability.

Expect to see wider adoption of AI-first SEO strategies and tools this year as organic search becomes more competitive and complex.

5. Predictive Analytics Will Be a Marketing Superpower

Predictive analytics is another area where AI shines – and it‘s set to become a game-changer for marketing in 2023.

Predictive models use machine learning to analyze patterns in historical data and forecast future outcomes. This allows marketers to proactively anticipate customer needs and behavior.

Some exciting use cases:

  • Predicting which leads are most likely to convert and prioritizing them for sales outreach
  • Identifying customers at risk of churn and proactively engaging them with retention offers
  • Forecasting demand for products to optimize inventory and avoid stockouts
  • Estimating the lifetime value of a customer to determine acquisition spend

AI-powered predictive insights give marketers an edge in driving revenue and improving efficiency. Teams can allocate resources to the highest-value opportunities and nip potential issues in the bud.

The predictive analytics market is expected to more than double from $10.5 billion in 2021 to $28.1 billion by 2026 as adoption accelerates.^7 But realizing its potential requires quality data – invest now in unifying your marketing data in a clean, structured format for AI.

6. Addressing AI Ethics and Biases Will Be Crucial

As powerful as AI is for marketing, it also comes with risks and challenges that will come to the forefront in 2023.

One of the biggest issues is algorithmic bias. AI models learn to make decisions from the data they‘re trained on. If that training data contains human biases around race, gender or other characteristics, the model will replicate and even amplify those biases.^8

For example, a study found that Facebook‘s ad targeting algorithms showed different job ads to men and women, even when all other factors were the same.^9 Zillow‘s AI-powered home valuation tool was found to undervalue homes in Black and Hispanic neighborhoods.^10

As AI becomes more prevalent in marketing, it‘s crucial for teams to proactively identify and mitigate biases in their models. This starts with diverse, representative training data and incorporating fairness testing into the AI development process.

Transparency and governance are also key. Marketers should clearly disclose when content is AI-generated and provide options for customers to opt out of AI-driven decisions. Establish cross-functional ethical AI review boards to oversee practices.

The regulatory landscape is also evolving. The EU‘s proposed AI Act would prohibit certain high-risk uses of AI and require assessments of AI systems.^11 More AI regulations are likely on the horizon.

Marketers need to get ahead of these AI ethics challenges now. Taking a proactive, principled approach to AI development will be essential for maintaining brand trust and managing risk in 2023 and beyond.

The Future of Marketing is Here

These six predictions paint a vivid picture of AI‘s transformative impact on marketing this year and in the years ahead. From generative content to predictive analytics to enhanced personalization, AI is unlocking superpowers for marketers that were once the stuff of science fiction.

But succeeding with marketing AI is not just about acquiring shiny new tools. It requires rethinking processes, upgrading skills, and embedding AI into the fabric of the marketing function.

Marketers need to become adept at prompting, training and collaborating with AI assistants. At the same time, they must sharpen their judgment and creativity to wield these AI tools responsibly and strategically.

As the technology progresses, the role of marketers will evolve from spending time on repetitive tasks to focusing on higher-order activities – storytelling, strategy, and stewardship of the brand-customer relationship.

In the long run, AI has the potential to elevate marketing from guesswork to precision, and from mass messaging to meaningful connections. Marketers who embrace this future and continuously adapt will be well positioned to thrive.