As AI continues to upend the marketing landscape, CMOs are facing high stakes as they try to implement it for success. The 2024 CAIO Report from PYMNTS offers an in-depth look at how CMOs have evolved their GenAI integration, going from broad applications to tailored strategies. While shedding light on the challenges that come with GenAI strategies, this report also reveals the high ROI that GenAI can bring to marketing campaigns.
For marketers and CMOs looking to learn how their peers are successfully using AI to their advantage, here are some highlights from the 2024 CAIO Report, “Strategic GenAI Integration Is Unlocking Higher ROI for CMOs.”
GenAI’s High-Impact Applications
Chatbots, data visualizations, and employee feedback systems can easily synthesize data, but why stop there?
While basic GenAI formulas have their place in streamlining routine tasks, they offer much more potential than simply completing basic assignments.
Firms experiencing high ROI explore complex uses of GenAI, such as aligning marketing campaigns with business objectives. By strengthening this connection, GenAI can help enhance campaign performance and consumer engagement.
GenAI supporting successful campaign performance isn’t just a theory. According to the report, 98% of CMOs in high-ROI firms identify GenAI as a crucial tool in product marketing.
As expected, campaigns result in large amounts of data for marketers to sift through if they want to determine success and plan their next steps. This is where GenAI integration comes into play again as 94% of high-ROI CMOs agree that GenAI plays a key role in evaluating advanced analytics and KPIs. Another 98% of high-impact GenAI users said that using this technology has led to increased adaptability within organizations as they can better respond to shifting consumer demands.
The Link Between Sophistication and Success
The data is clear. Firms that prioritize GenAI for advanced strategies see a higher ROI than those that do not.
In July 2024, only 8.3% of CMOs were reporting a positive ROI from using GenAI. However, as more CMOs integrated GenAI into their campaign strategies, that number jumped to 37% in October 2024.
CMOs analyzing how their company uses GenAI should consider how many tasks their program runs. According to the report, high-ROI firms are using GenAI for an average of seven tasks, meanwhile, low-ROI firms use it for an average of three tasks.
The broader usage of GenAI among high-ROI firms allows CMOs to be more strategic in each stage of the campaign development process as they are enhancing accuracy, alignment, and performance measurement.
Low-ROI firms are limiting their GenAI to routine tasks that have little effect on ROI. Thus, they are allowing a powerful resource to go unused. When competing with firms that are using GenAI to strategic advantage, CMOs who don’t adapt their GenAI usage will fall behind.
Overcoming Barriers to Broader GenAI Adoption
While it’s clear that GenAI integration offers a mountain of potential, there are still significant barriers CMOs must address as they integrate it into their strategies.
The 2024 CAIO Report reveals that almost 90% of CMOs say unfamiliarity and skill gaps are major obstacles when integrating GenAI into their strategies. During the early adoption stages, firms are also facing cost concerns with one-third of respondents agreeing that implementation and maintenance costs are key challenges.
CMOs must also consider data privacy. While GenAI’s capabilities grow, so too must security protocols to ensure consumer data is protected from breaches.
Addressing these challenges through comprehensive training programs and robust data security measures is essential for CMOs to fully harness GenAI’s transformative potential.
The Future of ROI with GenAI
The 2024 CAIO Report underscores that GenAI’s strategic integration can be a game-changer for marketing, delivering unmatched ROI when used effectively. While skill gaps, cost concerns, and data security remain hurdles, CMOs who address these challenges can better unlock GenAI’s full potential. By moving beyond routine tasks and embracing advanced applications, firms can gain a competitive edge and drive sustained growth in an evolving marketing landscape.
Access the full report here.
