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AI - Over hyped and Under appreciated - DMAS - 30 June 2017


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AI is a misnomer. Implying sentience leads to over hyped expectations.

Ian talks to the reality of AI application in marketing and startups.

He focusing on what AI is being used for now, hints at its role in the future and reflects on his own “AI” projects over the years.

Frameworks for adoption are presented with some clues as to who to work with and how to work with vendors for AI success.

Published in: Marketing
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AI - Over hyped and Under appreciated - DMAS - 30 June 2017

  1. 1. AI in Marketing Over Hyped and Under Appreciated
  2. 2. Ian Morrison AI in Marketing Marketing industry veteran with a background as agency CIO, Product Director and Creative Technologist. Founder & CEO of GKIM Vietnam, a 25 man boutique dev shop delivering work for • Agencies such as Ogilvy • The Singapore Government • Ambitious entrepreneurs around the world An international career with many tech achievements • AI algorithms for popular video games • Designed chatbots pretending to be God • Applied AI to many digital business solutions
  3. 3. AI Adoption Begins... Creeping into Projects
  4. 4. What is AI? Examples Making it Happen Conclusion
  5. 5. AI is a Misnomer Intelligence is the domain of Sentient Beings. AI is Data Science, Algorithms and Smarter UX’s. A catch all term for smart technology and solutions.
  6. 6. Different Things To Different People Maths & Data Science • Exploring mazes of data • Seeking seeking In Games • A few lines of code • Entertain for hours In Business • Optimize Supply and Demand • Configure the Marketing Mix
  7. 7. For Marketers 2. New Human Computer Interfaces (HCI) Cognitive AI’s enrich communications Customer Service apps Engage Richly with Human Brain Driven by Technological Capability. Two Broad Application areas. 1. Smarter, Data Driven, Digital Marketing Analytics, Machine Learning & Expert Systems Smarter marketers Engage Smarter using Computer Brain
  8. 8. #1 Smarter Digital Marketing Given a) clearly defined goals b) enough data to analyze. c) enough parameters to play with AI will find optimal solutions for the marketing mix. Engage Smarter Price Quantity
  9. 9. #2 New HCI’s Interactive Messaging, Customer Service & Sales Bots Face analysis*, Speech recognition*, NLP* NLG*, text to speech*, 3D Faces* Human Communications Cognitive Tech Programmed Brain* Words & Sentences Voice & Tone Body Language Digital CX Manager Virtual Girlfriend Robot Doctor Engage Richly Provided by multiple competing vendors Chat Bot Creative Opportunity Developing real personalities. Brand personas become actual personas. Apps named and treated as people.
  10. 10. Examples AI in the Marketing Mix GKIM Examples
  11. 11. AI and the 4 P’s Product Recommendation Creative Copywriting and Content Individual, Time based Pricing Digital Media Targeting
  12. 12. Product Recommendations - TV Shows, Music & Marketplaces Premise Customers don’t know what they want until they are told A strategic part of buying cycle Lists of crap - put you right off Have to go find what you want – not bother Given something that delights - no hesitation Torrent services miss this convenience & losing favor In the business of rights ownership and marketing AI recommendations worth $1b to Netflix AI exploits the long tail with infinite customization
  13. 13. Price Optimizing ARPU - airline tickets, hotel bookings and taxi fares Pricing Decisions Personal, Time sensitive Strategic & Complicated Commercialize inventory Maximize long term ARPU Game the competition Why travel? Fixed supply Variable demand Elastic pricing Night time Taxi Demand Personalized Pricing
  14. 14. Place Media Optimization - What digital advertising is all about Goals of digital advertising Maximize media opportunity Targeting and retargeting Competitive algorithmic buying Strategic advantage from AI Looking for patterns of browsing, clicking and purchase Discovering new opportunities, market segments and successful content Anticipating consumer behaviour Requires Scale Data warehouses AI power Fastest networks
  15. 15. Promotion Algorithmically Generated Content & Copy - Curation & Creation 1. Customized online recommendations and calls to action’ Trivial, fun and powerful 2. Narratives in focused domains Rules laced with content variations and NLG Educational content Sports narratives GKIM working on AI assisted content generation for PR 3. Advertising copy Human empathy required! Supporting different demo, psycho and geo.. Benefits must justify complexity and cost
  16. 16. Typical Customer, MAXPLORA Problem Rich database of deals Total value $12b Complex buyer and seller profiles Need Accurate recommendations Suggested buyer / seller matches SQL doesn’t cut it any more Solution Customized Amazon Elastic Search scores and ranks deals Result Powerful recommendations Very cheap technology A “poor man’s AI”? Pareto says “job well done”! Many applications don’t need “AI” per se
  17. 17. Giving Voice to God & other Brands Branded Conversations • Infer meaning from user texts • Develop libraries of responses • Constantly tweak scoring, manually • “What do you think?”, God would say if he got confused God’s AI • State machines and conversation trees • Tech for dozens of campaigns AI designed to support the Creative experience 20k bots deployed. Alexa & Siri are the HCI of our kids.
  18. 18. AI Bot Research Objectives The richest of possible user interfaces • Text • Audio • 3D Computer Graphic Avatars The smartest of AI brains with • Ability to maintain a conversation • Knowledge base (content) to engage • Drive consumers around buying cycle Next Generation Chat Bots
  19. 19. Does Marcel pass the Sniff Test? Fuzzy and complicated domains? • Creativity • Collaboration • Marketing solutions All in one little box? Natural language voice interface? June 2018 exactly? Marcel as a proxy for GKIM’s own research Leave tech sales to tech people?
  20. 20. But Wait... Context is controlled Question are straightforward - who? what? Database exists - people and projects Face analysis, Speech recognition, NLP NLG, text to speech, CG AI is available now 7 areas of AI Commoditized already Conclusion Advertising over hyped Product could be real Is voice the right UI?
  21. 21. Making it Happen Build your own AI? Who to work with How to work with them
  22. 22. Build your own AI? Challenges • Google Goggles face processing – inconsistent results with low CPU • Super high tech 3D Painting – one week became six months • Live actor driven avatar technology – should have just licensed Characteristics • Technology must serve • Is very difficult • Available very cheap High Tech Project Experience 3rd Party AI’s and frameworks are the only option
  23. 23. Marketing clouds • Major vendors have AI offerings • Branded toolsets • Adding spice to their CX, CRM and marketing tools. • Not so much generic AI. Core Tech vendors • Rich suite of AI API’s • Interchangeable • Getting better all the time Who to work with Core Tech or Marketing Tech
  24. 24. Working with Marketing Vendors AI should ● Add value to some components ● Develop insights from data pool ● Automate marketing process Client Businesses Integrating and Deploying the tailored marketing solution AIMarketingStakeholderStack Agency’s AI Marketing Solutions Industry specific marketing, AI personas, Content & Tech Data Science Provider AI algorithms, historical data and training models Vendor’s Marketing Clouds Kotler’s AI brain drives marketing automation. AI enhanced Digital marketing tools Complicated?
  25. 25. Working with App Developers Customer Touch Point Delivering the smarter UX Marketing Driven UX Tactics Application specific programming and integration Data Science AI algorithms, historical data and training models AI should ● Show its face to consumers ● Support marketing tactics around the UX cycle ● Control all aspects of the UX AIAppStack Fun!
  26. 26. Conclusions
  27. 27. AI Marketers will Emerge Adopt Technology Accessible and Interoperable Technologies New, AI driven marketing clouds Learn Skills Leave the AI tech to others Develop AI marketing expertise Takes time for an Industry to Change
  28. 28. AI Momentum is Unstoppable Cynical for now Ignore the name It’s wrong, misleading and distracts from what it really is Be nervous Big promises and big prices Ecstatic for future AI is the magic ingredient The power of code, data and connected systems Making computers smarter, more than tools Prepare to be delighted When you can • Ask AI the right questions • Pick the right AI technology • Design the right architecture • …with a genuine AI personality at the core
  29. 29. AD ASTRA 2017! I