In-house marketing teams face delays in adopting AI and Automation, remain reliant on external marketers

By Zion Rufus

Global enterprises, despite significant investments in AI and automation, are falling behind in adopting these transformative technologies within their in-house marketing operations, according to a recent study conducted by Algomarketing’s Global Marketing Operations, AI & Automation Index.

While there is growing enthusiasm for AI, most enterprises are still heavily reliant on the interpretation and judgement of their human marketers to drive marketing decisions and actions. These organizations have yet to harness the full potential of AI and automation, which can independently interpret data, make informed decisions, and execute actions with minimal human intervention.

According to reports, brands that have been transitioning to in-house marketing operations are increasingly faced with challenges as the outcomes of in-housing continues to fall short of expectations. For some, in-house structures have proven insufficient, leading them to continue relying on external marketers for interpretation and judgement instead of embracing AI and automation capabilities.

Algomarketing’s CEO, Yomi Tejumola, highlighted the study’s findings, stating, “This study shows that AI and automation are hugely under-used within the in-house marketing operations teams at some of the world’s largest enterprises. Although initial investment in AI is evident, most enterprises are continuing to use traditional or insight-driven marketing approaches.”

The study revealed that 77.5% of firms had to delay AI and automation implementation due to concerns about bias and fairness, with 32.7% reporting significant delays. Additionally, cost (51.3%) and skill shortages (44.4%) emerged as major challenges in adopting AI and automation.

However, the study also showed promising results for companies that successfully implemented AI tools, with nearly a quarter (23.2%) experiencing a remarkable 75% increase in return on investment from marketing spend. The majority (68%) reported ROI increases ranging from 50% to 74%, demonstrating the potential impact of AI within marketing operations.

Interestingly, the study identified regional disparities in AI adoption. U.S.-based marketers were found to be less likely to have adopted AI tools, with only 26.7% utilizing such technology over the past three years. In contrast, 54.5% of Australians and 45.3% of British marketers had embraced AI. Australia and the UK also led in setting budgets for the next financial year, with 65.5% and 62.5% of respondents, respectively, committed to increasing spending in 2024.

The adoption of in-house marketing structures among global brands was driven by various factors, including cost-effectiveness, creativity and business synergy, speed, confidentiality, agility, reduced conflicts of interest, better brand and vendor knowledge, dedicated staff, and enhanced decision-making control.

While agility was a universal expectation, only 40% of brands successfully achieved it. Additionally, increased cost efficiency and control fell short of expectations. Nonetheless, more than a fifth of the brands surveyed believe that the in-housing trend will rapidly increase in the future.

Despite ethical concerns causing delays in AI adoption, the benefits of implementing AI and automation in marketing are too significant to overlook. The advertising industry is poised to witness the transformative potential and value of these technologies, even as the world’s biggest brands navigate the complexities of integrating them into their operations.