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Customer Transformation Leader, PwC US
Understanding each customer as a unique individual is crucial whether you operate in a direct-to-consumer or business-to-business environment. As companies explore innovative ways to deepen trust and enhance services, artificial intelligence (AI) and generative AI (GenAI) are playing a leading role in meeting human needs more effectively.
At this year’s Cannes Lions International Festival of Creativity, AI and GenAI took center stage. Yet, amid the enthusiasm, industry leaders acknowledged the need to not only leverage these technologies but also address the inherent challenges and risks they pose.
Concerns around misuse and misinformation were prominent at Cannes and remain a critical focus. The organizations that are likely to thrive understand how to harness AI and GenAI to serve more customer needs while mitigating potential risks. But AI isn’t without limitations. Overreliance on automated systems can lead to impersonal customer interactions, and inherent biases can perpetuate inequality if not properly managed. To counteract these risks, marketing leaders should implement AI with a clear understanding of its limitations and continuously monitor its impact.
Building trust to strengthen customer relationships
The power of AI lies not only in delivering tailored solutions for customers but also in fostering a dialogue that can build stronger, more resilient customer relationships. This approach goes beyond merely reacting to customer needs; it involves cultivating a deeper relationship where customers place greater trust in your company.
A responsible approach to product and service offerings, paired with transparent communication, is key to building this trust. For example, outdoor clothing and gear company Patagonia uses AI to personalize shopping experiences by making product recommendations based on individual customer behaviors and preferences. While transparency, permissions and security remain critical in addressing privacy concerns, this strategy not only enhances customer satisfaction but also aligns with Patagonia’s sustainability goals, promoting long-lasting purchases and minimizing environmental impact.
Q. To what extent is each of the following a priority for your function? Source: PwC Pulse Survey, June 11, 2024
AI as an augmenter of — not replacement for — your workforce
One clear takeaway from Cannes Lions is that AI won’t replace creatives within organizations; rather, those creatives who effectively integrate AI into their work will replace those who don’t. When used responsibly and with consideration of customer relationships, AI can augment rather than diminish creative capabilities.
For instance, IBM’s AI Board works to align AI deployments with responsible practices, emphasizing transparency, accountability and fairness. This initiative not only builds customer trust but also helps underscore IBM’s commitment to responsible use of AI.
Broadening the impact: AI across business functions
As businesses strive to attract and retain customers, combining creativity with the responsible use of AI can enhance trust in your brand. This deeper trust helps increase the likelihood of achieving tangible outcomes that drive business growth and create long-term value. And when integrated across other facets of your organization — from supply chain optimization to product development — you also can drive innovation, improve operational efficiency and create new business models that align with evolving market demands.
Take Zillow, which leverages AI to predict home valuations and market conditions. This not only offers customers greater visibility but also helps them make informed decisions in real estate transactions. As with Patagonia, transparency and customer consent are critical. By prioritizing these elements, businesses can boost user confidence and enhance engagement with AI-driven tools.
5 key actions for marketing leaders
Marketing leaders, particularly chief marketing officers (CMOs), can and should play a crucial role in confirming that AI is used responsibly within customer strategies. Here are five key actions to prioritize:
- Provide transparency. Clearly communicate how customer data is used by AI systems, including data collection methods, usage purposes and AI decision-making processes. Implement AI systems capable of explaining their decisions and actions to help build trust and enhance customer understanding.
- Prioritize data privacy and security. Confirm that all AI applications comply with relevant data protection regulations, such as the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA). Conduct regular updates to align with regulatory changes, using anonymization and encryption to protect personal data while limiting collection to what’s necessary for improving customer experience.
- Avoid bias and discrimination. Use diverse and representative data sets to train AI models, avoiding the perpetuation of biases. Regularly review and update these data sets to reflect changing demographics and social norms. Conduct audits of data and algorithms to identify and correct biases in AI outputs.
- Promote accountability and governance. Develop and enforce Responsible AI guidelines, including a code of conduct and best practices. Establish a diverse team with the authority to make decisions regarding Responsible AI implementation.
- Engage in Responsible AI training and education. Provide ongoing training for employees on Responsible AI practices, including the potential benefits and risks of AI in marketing. Engage with customers, partners and industry experts to gather input on AI practices, aligning them with broader societal values and expectations.
By prioritizing these actions and focusing on authentic customer connections, your company can not only anticipate but also actively shape the future of business in an AI-driven world.
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