The Impact of Generative AI on Marketing Strategies in 2024

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Introduction Generative AI  represents the latest evolution in the field of Artificial Intelligence  and is a group of AI models designed to generate new content, spanning text, images, and videos . According to a recent McKinsey report, marketing is projected to be the most affected firm function by GenAI, which is forecast to enhance marketing productivity by up to 15% of the total marketing expenditure, amounting to approximately $463 billion annually. GenAI: A technical overview In technical terms, we can define GenAI as deep neural networks, pre-trained on large amounts of data to create a foundation model, which is then fine-tuned to produce new content by following human instructions . In this section, we provide a technical overview of how GenAI models are trained and how they produce content. Given these technical specificities, we then explain why the output of GenAI can be helpful for firms, as it is both novel and appropriate–and, hence, creative. Producing ne...