With AI Marketing, Trust & Transparency Should Be Top Priority

In order to create tailored customer experiences that lead to loyal connections, it is becoming standard practice to gather and nurture first- and zero-party data through an open and transparent value exchange with consumers. Artificial Intelligence (AI)   continuously learns from data from a variety of consumer interactions to uncover opportunities that would otherwise be difficult to find at scale. When combined with other analytics tools to develop complex insights, reveal problems, and enhance processes, it becomes even more effective. As a result, there is a stronger, more meaningful connection with customers.

It's simplistic to assume that AI will be objective merely because it is being carried out by a machine using factual knowledge, free from the influences of a human construct. However, using only historical data to create self-learning, black-box algorithms has the potential to perpetuate inherent biases regarding factors like gender, race, ethnicity, and socioeconomic status. And the choices a business makes based on this AI could result in outcomes that reinforce the status quo instead of bringing about a much-needed change. Artificial Intelligence initiatives could also backfire and result in public outcry or even legal repercussions if used poorly.

*The AI Advantage

When it comes to precisely identifying market openings, intuitively anticipating client wants, nurturing leads, and assisting in the design of the customer journey, the machine learning (ML) component of AI is invaluable. At each stage of the customer journey, artificial intelligence has the potential to be a priceless enabler. It's also interesting to note that most conventional marketing methods already use AI in some form; anyone who uses social media for marketing or data pipelines already employs AI.

Artificial Intelligence also has a considerably reduced potential for error than humans do. This is its greatest asset. Artificial Intelligence also has the speed, capacity to digest considerably bigger volumes of data, and capacity to produce more marketing outreach.

The ability of AI to develop messaging and marketing content that directly targets prospects and increases its effectiveness is now the most alluring application of AI in marketing. Social listening data is used to generate the messaging, which has a remarkable ability to target the right audience and convey the right message.

Infinite customer profiles can be created using AI tools based on the billions of data bytes gathered through AI algorithms, including timeframes of needs and preferences, geographic focus, and digital interactions. Slice and dice data using any or all of these variables to create the best targeted messaging for each prospect. This is frequently delivered with the use of chatbots, which is another application of AI.

Professionals in marketing and communication won't have to waste time and money experimenting with different message and content ideas before finding the ideal one, thanks to AI. That is a tremendous save right there. These models allow for precise customisation of each concept and term. The best models can be adopted or rejected quickly and effectively by monitoring tactical data collected in real-time. But AI is not yet completely safe. At the end of the day, the decision-maker is still a human mind, even though it can give marketing strategies a significant edge. This is not to call AI inefficient, but we must remember that there are some areas where humans outperform machines, and very often, a business decision made from the heart outperforms one made from perfect machine-made data-driven choices.

*And Yet, the Future is AI

There is no escaping the necessity of AI and its critical part in the development of marketing. But as its use becomes more widespread, we must become adept at handling it responsibly. Artificial intelligence that upholds basic principles like individual liberties, privacy, non-discrimination, and non-manipulation is said to be ethical AI. Customers anticipate businesses to use AI in a moral and objective way. Businesses will (and should) be held responsible for using it in an open manner that doesn't hurt or discriminate against any stakeholder group. Here, the phrase "ethical AI" turns into a marketing requirement. 

It is necessary to delve deep into your data to understand the inherent biases and teach your technology to combat them. Instead of viewing consumers as a collection of demographic data points, it means considering them as individuals with diverse backgrounds, hobbies, and requirements. Consumers are increasingly, in my experience, looking for humanised communication from the brands they interact with, and ethical AI presents a unique chance to win their trust. Additionally, having an AI strategy that is open, honest, and clear can set you apart from competitors who disguise their goals behind an appearance of reliability.

Regardless of optics, it is the responsibility of marketers to observe privacy when using AI to personalise marketing messages. There is a fine line between targeted advertisements that are helpful and the intrusive ones. By concentrating on demographic factors, it is also simple to fall victim to stereotype bias – the attribution of particular characteristics to a member of a particular social group – or to exclude sections of your customer base.

So how do you make sure your marketing is truthful, inclusive, worthwhile, and respects privacy? Artificial Intelligence can only be trusted if it is developed transparently, with human rights protection, justification, accountability, and inclusion at its heart. To ensure that AI benefits customers, it's important that marketers prioritise ethics of AI in their marketing practices: 

1. Use and collect individual information appropriately – By only gathering the data that is absolutely required, you can give the ethics of AI top priority in your marketing strategies. This is crucial because you don't want to gather sensitive information that might give rise to privacy issues. When it's not essential, you shouldn't keep pestering your audience for private information because doing so can erode their trust in you.
2. Be transparent about the data use – It's beneficial to explain to your audience how your AI functions when integrating it into your marketing plan. This is also useful for elaborating on the rationale behind your AI's choices, in order to further clarify the goals and values of your company.
3. Give customers control and clarity – You should think about letting your audience decide exactly what information is collected. It demonstrates to your audience the brand’s willingness to put their privacy first. Additionally, it helps your audience comprehend the choices made by your business and how AI affects their daily lives. 
4. Provide clear benefits in exchange for data  – Asking for your audience’s data is a sensitive subject, so explaining the benefits of sharing data with your brand is crucial. This can help build trust and brand awareness. It also gives your audience a better understanding of how your brand works and what they’re trying to accomplish.

While there are several advantages to using AI in marketing, it's crucial to be conscious of and address the ethical issues involved. Marketers and brands can make sure they are utilising this potent tool in a way that benefits both their customers and society as a whole by adopting a responsible and ethical approach to AI development and implementation. 

Amit Tiwari

Guest Author The author is the Global Head of Marketing Demand Centre of Tata Consulting Services, Amit leads MarTech strategy and operations to support the business and marketing objectives. For over 21 years, Amit Tiwari has proved a key thought leader in the MarTech space. He understands and adapts technology faster and is also keen on experimenting and exploring new technology and new ventures in marketing.