As businesses increasingly turn to artificial intelligence (AI) and machine learning (ML), understanding the impact of these technologies on business operations and customer experiences is important.
So, we compiled AI reports for 2023 to explore the latest surveys and studies on the impact of AI on businesses and consumers.
As we delve into the findings, it becomes clear that while AI and machine learning (ML) have the potential to enhance customer experiences, businesses must carefully consider how to balance human and AI interactions to meet consumer needs.
Furthermore, as online data privacy concerns continue growing, brands must be transparent and prioritize implementing robust privacy policies to build customer trust.
Join us as we unpack these and other key takeaways from the latest 2023 AI reports.
The global artificial intelligence (AI) market projected to grow significantly by 2030
Despite varying projections among different market research reports, one thing is clear: the Artificial Intelligence (AI) market is on a trajectory of significant growth in the coming years. The fact that IDC estimated the AI market size at $327.5 billion in 2021, while Grand View Research projected over $500 billion in 2027, and the most recent report by GlobeNewswire projects over $1.5 trillion US dollars by 2030 indicates the market is growing at an unprecedented rate. As businesses across all industries adopt AI technologies, we expect to see an even higher growth rate in the coming years.
AI adoption across industries and functions in 2021
Artificial intelligence (AI) has become an integral part of service operations and product development in the high-tech and telecom industries, with 34% and 45% of respondents, respectively, confirming its use in these areas. The financial services industry also relies heavily on AI for risk management and service operations functions. Businesses can optimize operations, automate repetitive tasks, and improve customer experiences by leveraging AI technologies. As AI continues to advance, we can expect to see even more AI applications in different sectors, leading to more efficient and cost-effective operations.
High funding data for MLOps startups reveals increasing investments in AI technologies and applications
The AI report analyzed over 10,000 Artificial Intelligence (AI) companies and their funding data from 2015 to 2023 and found that OpenAI is the most funded Machine Learning Operations (MLOps) startup. Since its inception, OpenAI has amassed over $11 billion, which is significantly higher than the combined funding of about $3 billion received by all the other companies. Additionally, the top 10 most funded MLOps startups have each received over $100 million in funding, underscoring the growing demand for AI technologies across industries and further suggesting that the market will continue to grow in the coming years.
Rising corporate investment in artificial intelligence (AI) signals a promising future for the industry
The surge in total global corporate investment in artificial intelligence (AI) to almost $94 billion in 2021 from the previous year indicates the rapid growth of the AI market. Although AI investment saw a slight downturn in 2018, it was only temporary. The fact that AI investment has increased more than sixfold since 2016 underlines the importance of the development of AI around the world. With the global AI market valued at $142.3 billion as of 2023 and investments in AI startups continuing to grow significantly, the industry is expected to expand from billions to trillions of dollars in market size in the coming years.
Chatbot market set to grow rapidly by 2025
The chatbot market is expected to grow significantly, reaching a market size of $1.25 billion in 2025, up from $190.8 million in 2016. Many businesses have already implemented chatbots in various areas, including customer service, CRM, sales, and marketing, which will continue to fuel this growth. Similarly, the global AI software market, which includes natural language processing, robotic process automation, and machine learning, is expected to reach 118.6 billion U.S. dollars in 2025, up from $9.51 billion in 2018. This growth can be attributed to the heavy investment in AI-related research and development by industry giants such as Microsoft, Google, and IBM, with thousands of AI patent applications submitted.
AI in marketing set to reach over 107.5 billion by 2028
Artificial intelligence (AI) use in marketing has grown significantly over the years, with a projected value of over $107.5 billion by 2028, up from $15.84 billion in 2021. The vast adaptation of AI for marketing purposes is due to its numerous benefits, like task automation, data analysis, and campaign personalization. Integrating AI technologies in online marketing activities is so widespread that 80% of industry experts utilize some form of AI. According to 47% of respondents in the U.S., the UK, Canada, and India, ad targeting is the most popular AI application area for marketers. These findings indicate the growing importance of AI in marketing and its transformative potential in the industry.
The future of advertising: AI-enabled ad spending set to reach 1.3 trillion dollars by 2032
AI-enabled advertising spending is expected to reach 370 billion U.S. dollars in 2022. The projections show a remarkable growth trajectory for AI-enabled ad spending, with a predicted amount of $1.3 trillion ten years from now. These figures underscore the significant role AI will play in shaping the future of advertising. Using AI, advertisers can optimize ad targeting, personalize campaigns, and conduct data-driven analysis, leading to better advertising outcomes and increased revenue. As AI technology continues to advance, we can expect to see even more transformative applications of AI in advertising.
Non-cookie methods emerge as the most impactful, innovative marketing technologies in 2022
The March and April 2022 survey highlights the growing importance of non-cookie methods for measurement improvements in advertising, with 26% of respondents citing it as the most impactful marketing technology innovation of 2022. Integrated media planning and execution also remain crucial, with 22% of respondents emphasizing its impact. Moreover, the emergence of new channels like immersive games and TikTok offers exciting opportunities for marketers, as 16% of respondents noted, indicating the ever-changing landscape of the marketing industry.
Global survey finds 90% of marketers using AI for customer interactions and personalization
The use of AI tools in marketing continues to grow. A 2022 global survey indicates that 90% of marketing professionals across 35 countries are now using AI to automate customer interactions, up from 88% in 2021. Additionally, 88% of marketers noted that AI has effectively personalized the customer journey across various channels. These findings highlight AI’s increasing adoption and benefits in the marketing industry as marketers continue to explore new ways to enhance customer experiences and achieve business growth.
Nearly half of marketing professionals trust AI for targeted ads and real-time personalization
According to a 2022 survey of 853 marketing professionals in the United States, United Kingdom, India, and Canada, 47% of respondents trusted artificial intelligence (AI) to target ads. Additionally, 42% trust AI to personalize content and offers in real-time, while 39% said they trusted AI to optimize email send time. This AI report suggests that AI is becoming an increasingly important tool for marketers to improve customer experiences and drive business results in the highly competitive digital marketing landscape.
Survey reveals widespread usage of AI in marketing automation
A survey conducted among 393 marketers worldwide from February 15 to 23, 2022, found that 32% of respondents utilized artificial intelligence (AI) alongside marketing automation for paid advertising, email message personalization, and offers. Additionally, 22% of respondents combined AI with marketing automation for product and content recommendations and email subject line personalization. This trend will likely continue as AI continues to offer benefits like automation and campaign personalization.
B2B marketers prioritize social media and personalization in 2022
A survey conducted among B2B marketers in the United States in late 2021 found they wanted to implement new tactics, strategies, and channels in their marketing efforts in 2022. Social media marketing was at the top of their minds, with 41% of respondents saying they wanted to include it in their marketing efforts. Marketing personalization was also a priority, with another 41% saying they wanted to focus on it. Other tactics that marketers plan to implement in 2022 include account-based marketing (37%), content marketing (34%), and influencer marketing (31%). This AI report’s findings suggest that B2B marketers recognize the importance of social media and personalization in their marketing efforts and are exploring various tactics to improve their overall marketing strategy.
Global survey finds majority of marketing leaders using AI to predict customer behavior and needs
A global survey conducted among marketing leaders in December 2022 across B2B, B2C, and hybrid companies found that AI is increasingly used to improve customer experience. Of the 1,000 respondents, 60% stated that the most popular reason for using AI was to predict customer behavior and needs, while 47% used AI to uncover frequent customer journeys. Interestingly, only 23% of marketing leaders shared they used AI to improve Marketing Qualified Leads (e.g., chatbots), indicating that there is still a lot of untapped potential for AI in marketing. With the growing demand for more personalized customer experiences, it’s no surprise that AI is becoming an increasingly important tool for marketers to enhance customer satisfaction and engagement.
Survey reveals top benefits of artificial intelligence and machine learning for marketing professionals in the US
According to a survey of 183 marketing professionals conducted in July 2022 in the United States found that 33% of respondents using artificial intelligence (AI) and machine learning (ML) tools benefit most from time saved. Additionally, 31% of professionals stated that the same tools benefited their trend insights, audience preferences, or behaviors. An additional 26% shared that AI and ML helped them improve or optimize content. The survey focused on professionals who worked for companies currently using AI or ML software for advertising, content, or copywriting generation.
Survey reveals the challenges of AI and ML tools for marketing professionals in the US
The same survey of 183 marketing professionals in the United States also explored the challenges marketers face with artificial intelligence (AI) and machine learning (ML) tools in their marketing programs. Most respondents (35%) said their leading challenges were risk and governance issues related to using AI and ML technologies. Another 31% stated the technologies were too difficult to use or deploy. And 30% noted that the costs associated with AI and ML were a significant challenge. To maximize the benefits of AI and ML while minimizing the challenges, marketers must carefully evaluate and select the right tools for their specific needs, ensure proper data governance and security, invest in employee training and education, and monitor and adjust their strategies based on performance and feedback.
Most B2B marketers in the US use chatbots for audience understanding and lead generation
A survey conducted in the United States in October 2022 shows that chatbots have become a valuable tool for B2B marketers in their demand generation programs. More than half of 1,000 respondents (57%) stated that chatbots helped them better understand their audience, while 55% used them for lead generation. Additionally, 43% mentioned that chatbots helped them educate prospects. These findings suggest that chatbots can be crucial in B2B marketing by improving lead generation and customer insights.
Chatbots prove effective for lead generation among B2B marketers in the US
The same researchers in the October 2022 survey above wanted to find out the effects of chatbots on lead generation programs. Of the 1,000 respondents, 26% reported a 10-20% increase in lead generation volumes, while 25% reported a 5-10% increase. Moreover, 15% of the B2B marketers reported a significant increase of more than 30% in their lead generation using chatbots. These results indicate that chatbots are becoming an effective tool for B2B marketers to generate leads and improve their overall marketing performance.
United States consumers believe AI and ML can improve customer experience
A January 2023 survey of 1,000 respondents in the United States found that a significant number of consumers (45%) don’t understand how artificial intelligence (AI) and machine learning (ML) technologies work. However, a majority of respondents (73%) believed that AI and ML had the potential to impact customer experience (CX), and 48% said they would be more likely to interact with AI if it made their experience with a brand, making it more convenient, seamless and consistent.
Survey reveals mixed feelings on consumer satisfaction with chatbot communication in the US
A 2022 survey conducted among 1,059 consumers in the United States revealed mixed feelings regarding AI chatbots in business communication. While 25% of respondents expressed satisfaction in communicating with AI chatbots when contacting a business, 43% said they were unhappy with the idea. Based on this AI report, businesses should aim to strike a balance between human and AI interaction by providing options for customers to choose the mode of communication that suits them best.
US consumers prefer human customer support over chatbots, survey finds
The survey carried out in 2022 in the United States with 1,059 respondents found that most consumers (86%) find it important or very important to contact a real person when communicating with a business. This highlights the continuing importance of human customer support in the age of advanced automation and artificial intelligence (AI). Only 4% of respondents indicated that it was not important or not at all important to have access to a human representative.
Survey finds mixed views on the use of image software in social media advertising
In a survey conducted in the United States in 2023, 1,008 respondents were asked about their opinion on using Photoshop or Generative artificial intelligence (AI) images of faces/people in social media advertising. The results showed that 48% of respondents stated neither software should be used for this purpose. Another 25% said that both image apps were acceptable for that purpose. This suggests that many consumers prefer more authentic and genuine representations in advertising.
But take a look at the results of the second survey below.
Survey reveals generative AI images in advertising are appealing to certain age groups
The 2023 survey conducted in the United States showed that generative artificial intelligence (AI) images had varying degrees of appeal among different age groups. Specifically, 16% of respondents aged between 35 and 44 years old found these images extremely appealing when created and/or shared by brands/advertisers, while 12% of respondents aged between 18 and 34 years old found them extremely appealing in social media advertising when created and/or shared by influencers. Audiences aged 45 and over were the least impressed by AI images. Therefore, businesses may need to tailor their marketing strategies and messaging accordingly to appeal to their target audience.
Survey reveals consumer concerns about online data privacy and targeted advertising
A 2022 survey conducted in the United Kingdom and the United States found that most respondents (74%) are concerned about brands being able to track and view their online behavior for advertising purposes. Moreover, just over a quarter of the respondents claimed to understand completely how companies use their personal data to target them with ads online. The survey further revealed that 42% of respondents would choose not to share their personal data with advertisers online, given the choice. This AI report suggests that brands must be transparent with their data practices and implement robust privacy policies to alleviate consumer concerns and build trust.
Survey finds age plays a role in consumer attitudes toward personalized ads
According to a 2022 survey conducted in the United States among 1,005 respondents, 81% of Generation Z respondents (born 1997-2012) and 57% of millennials (born 1981-1996) stated that they liked personalized ads. However, the share of respondents who liked personalized ads decreased with the increasing age of the respondents, with only 43% of baby boomers (born 1946-1960) expressing a preference for personalized ads. This survey shows that personalization in advertising may be more effective for younger generations. It is important for businesses to understand their target audience’s preferences and attitudes toward personalized ads to tailor their advertising strategies effectively.
Final thoughts
Although there may be varying projections about the growth rate of the AI market, it is clear that AI investment and adoption will continue to increase in the coming years. Businesses are eager to leverage the benefits of AI, like increased efficiency, improved decision-making, and better customer experiences.
However, in their quest to implement AI solutions, businesses must not overlook the needs and preferences of their customers. The 2023 AI reports discussed above show that while many consumers recognize the potential of AI to improve customer experiences, they still value human interaction and have concerns about privacy and targeted advertising.
To successfully integrate AI into their operations, businesses must balance the convenience and efficiency of automation and the personal touch of human interaction. They must also prioritize transparency and data privacy to build customer trust. By doing so, businesses can reap the benefits of AI while providing a customer-centric experience that meets the needs and expectations of their target audience.
