Idea in Brief

The Challenge

At many firms, the marketing function is rapidly embracing artificial intelligence. But in order to fully realize the technology’s enormous potential, chief marketing officers must understand the various types of applications—and how they might evolve.

The Framework

Classifying AI by its intelligence level (whether it is simple task automation or uses advanced machine learning) and structure (whether it is a stand-alone application or is integrated into larger platforms) can help firms plan which technologies to pursue and when.

Implementation

Companies should take a stepped approach, starting with rule-based, stand-alone applications that help employees make better decisions, and over time deploying more-sophisticated and integrated AI systems in customer-facing situations.

Of all a company’s functions, marketing has perhaps the most to gain from artificial intelligence. Marketing’s core activities are understanding customer needs, matching them to products and services, and persuading people to buy—capabilities that AI can dramatically enhance. No wonder a 2018 McKinsey analysis of more than 400 advanced use cases showed that marketing was the domain where AI would contribute the greatest value.

A version of this article appeared in the July–August 2021 issue of Harvard Business Review.