It’s clear AI is having a moment. It’s been more than a moment, really—especially for marketers. The explosive rise of generative AI and content generation tools has cemented AI as a must-use for any brand looking to boost efficiencies and (ideally) improve the customer experience.
But as more and more marketers look to these tools to craft communications, the question becomes: How can we effectively use AI in our marketing strategies with the most benefit to the consumer? At the end of the day, marketers are tapping into AI to make things better for their customers—whether that be through better personalization, efficiency improvements, more relevant promotions, etc.
We hear a lot about how marketers are using AI. But what about the people on the receiving end of the content? Is the juice really worth the squeeze? Epsilon Pulse conducted a survey of +500 consumers to find out.
According to the Epsilon Pulse report, The state of AI in marketing:
There’s no denying that AI is going to be a fixture in marketers’ toolkits moving forward. While it promises speed and time savings, AI can also help enable personalization at scale—we found over half of marketers believe ad personalization will significantly improve because of AI.
Now that we know how marketers are using the tech, let’s explore how consumers feel about being at the receiving end of it.
As AI becomes more integrated into everyday experiences, people are becoming increasingly aware of its presence—especially when it comes to interactions with brands: According to our latest survey, nearly 60% of consumers say they’ve noticed brands using AI in marketing over the past month.
Awareness is especially high among younger audiences, with two-thirds (66%) of 18-29-year-olds recognizing AI use in recent brand messaging, compared to only 40% of those aged 60+. This digitally native group also shows the highest confidence in identifying AI-generated content compared to other age groups.
When it comes to how AI impacts brand perception, the majority of consumers (53%) say it doesn’t change how they feel about a brand. It seems AI is becoming a more "neutral" part of the marketing landscape—something people have familiarized themselves with and come to expect. And while some consumers express concerns, others are already seeing clear benefits. Among those who support AI in marketing, top advantages include:
One thing is increasingly clear across consumers, though: Transparency is key. 73% of consumers believe brands should disclose when AI is used in marketing. Brands that are open and ethical in their use of AI can build trust while delivering smarter, more tailored experiences.
Consumers want the brands they invest in to be transparent and thoughtful when it comes to AI. Like everything, there should be a balance, and understanding this nuance is important for marketers looking to build trust. Here are some things to consider:
Generative AI is getting most of the flowers right now—but predictive AI is the real unsung hero. Marketers need predictive AI to ensure the message is hyper-relevant, reaching the right person at the right moment. The combination of the two maximizes campaign efficiency and ROI. And while the potential of generative AI is immense, marketers need a solid data foundation to truly harness its capabilities.
Remember: Quality data is non-negotiable; without it, even the most sophisticated models will yield only mediocre results.
When done right, AI can help deliver more seamless brand experiences that ultimately help people—but first, you need to fundamentally understand who you're trying to talk to. If you can't, how can you be sure you're saying the right thing even if you're using AI?
That's where having a strong foundation of data and insights rooted in deterministic identity comes into play. It ensures that your AI solution(s) have the best and most up-to-date information about your customers—where they browse, what they buy, their likes and dislikes—so you can serve the right message at a time when they're most receptive. At the end of the day, AI is only as good as the data it's trained on. If you have garbage in, you will get garbage out—and that's what consumers are going to notice.
Moving forward, brands that balance AI’s innovation while maintaining consumer trust will come out on top. By prioritizing transparency, maintaining a human connection rooted in data and identity and prioritizing not just generative AI but predictive AI, too, can turn AI into a key tool for growth rather than a hinderance.
Staying informed about the latest developments in AI is critical for marketers aiming to maximize their effectiveness. For further insights, we recommend exploring our resources, including the full report, The state of AI in marketing, where we uncover how marketers across industries are really using AI.
To learn more about how Epsilon’s CORE AI enables real-time marketing decisions at an individual level, visit our website.
Epsilon Pulse is the beating heart of Epsilon’s proprietary research. Designed to produce relevant and up-to-date insights about consumers, marketers and their preferences, Epsilon Pulse helps brands better understand the adtech and martech industry so they can make informed, data-driven marketing decisions.
