The AI Risks That Keep Marketers Up at Night
Marketers are on the front lines of the AI transformation at many companies. Not only are they getting access to AI through the many tech vendors they employ, but their customers also interact with them using AI-enabled tools. From AI-generated content to AI-based analysis, marketers trust algorithms to do more and more. At the same time, customers are using AI-based search and chatbots to learn more about brands and get customer service.
The AI revolution means that marketers must learn to use AI to create efficiencies and advances in their marketing programs and learn a new way to interact with their customers. This is a highly risky time for marketers, and they know it. After nearly two years of AI experimentation, marketers deeply understand the harm AI could do and why their companies might not be equipped to manage it.
The Top AI Concerns are Serious
Senior marketers at brands large and small have similar concerns about AI, and they are serious issues. AI has no morals, doesn’t understand changing privacy regulations, and is overly confident even when it’s terribly wrong.
Alium’s interviews with hundreds of marketers expose the following top concerns about AI and its capabilities:
Accuracy and Reliability. Marketers have highlighted concerns about AI's tendency to make mistakes or "make things up." This is especially concerning when AI is used internally without access to a broader field of learning or external advancements.
Privacy and Compliance. Privacy and compliance are major concerns when using AI, particularly generative AI. The potential for privacy breaches and the need to comply with privacy laws are critical issues that marketers are grappling with.
Regulatory and Ethical Risks. Brands are concerned about regulatory issues, especially since AI use is not heavily regulated. This has led to concerns about the potential misuse of AI, as seen in cases where AI technologies have been improperly used for purposes like facial recognition.
AI Concerns Point to Bigger Company Weaknesses. Marketers’ top business concerns indicate where their companies are exposed to AI risks. Regarding technology use, marketers are concerned about two major areas of weakness.
Over-reliance on Technology without Process. Many marketers worry that despite having a robust technological stack, poor processes can exacerbate problems rather than solve them. They emphasize that technology should enable effective processes rather than being seen as a silver bullet that automatically resolves issues. When brands have too little process built around AI, the AI output can be implemented without effective checks and balances. Consider a marketer with no process for double-checking the quality of data used for an AI-based customer analysis. Another example is where there is no oversight to ensure that AI-generated content follows brand guidelines. Just because AI works quickly doesn’t always mean its output is correct or effective.
Complexity and Management. There is a significant concern about how complex marketing technology can become. Managing this complexity, evaluating overlaps, and ensuring efficient use of existing tools are important considerations. Marketers have also highlighted the challenges in integrating diverse tools and optimizing their capabilities to gather actionable insights. Adding AI to the mix doesn’t always create the efficiency or lift in performance marketers seek. Many marketers point to AI producing even more complexity, such as thousands of versions of a creative asset that need to be reviewed. AI also increases expectations, such as the desire to deliver fully personalized experiences to every customer, which is much more complicated than a generic campaign.
Address Bigger Issues Before Embracing AI
The clear message to the broader executive team at any company employing AI is that larger company weaknesses must be addressed before AI is fully implemented. It can be tempting to jump in with both feet—especially because AI is easy to access, affordable, and seemingly easy to use. But that’s exactly what makes AI so risky.
Marketing leaders should raise the flag for their technology and legal counterparts, including the CISO, CTO, and General Council, to create an alliance that can address the risks of AI head-on. Companies that want to go all-in with AI first need a solid foundation of quality data, privacy and compliance oversight, and robust processes that empower marketers to use AI with confidence.
Jonathan Sherry is founder and CEO of Alium, an intelligence platform that helps buyers and sellers of marketing and e-commerce solutions make smarter decisions. Before Alium, Jonathan co-founded CB Insights. Over the course of his 11-plus years as its COO, he built and led CB Insights to what it is today: one of the venture industry’s preeminent sources of research and intelligence. Jonathan holds an MBA from Columbia Business School and a Bachelor of Science in Electrical Engineering from the University of Pennsylvania. He is also a board member and investor in tech startups, venture funds and Broadway productions.