Blink:
Last year I began advocating my concern generative AI is the elephant in the room in regards to planet earth’s environment. Specifically, its use as a marketing tool to influence consumer purchasing behavior resulting in an increase in the overall consumption of manufactured material-based products. Ready for an update?
Read On:
Generative AI is driving the “new age” of hyperpersonalization marketing. As this marketing transformation rapidly evolves, most companies are currently utilizing existing AI generative tools while some are differentiating themselves by customizing their resources while integrating innovative models with their own systems/data. Optimizing AI information is driving numerous areas of hyperpersonalization. They are detailed below:
- Real time consumer purchasing behavior data analytics.
- Customized marketing movements (e.g. content/social media platform development) in accelerated time.
- Enhanced customer engagement.
- Innovative predictive new product development (e.g., R&D).
- Advanced supply chain processes.
The result for consumer product companies utilizing AI is they are optimizing their revenue growth management strategies. I apologize for sounding cynical, but to me AI as a marketing tool only bodes well if you are a stakeholder benefiting from a CPG company which potentially would drive the overall consumption of its material-based products for increased profitability. In addition, these products might not be manufactured by companies within the sustainable guidelines needed for a healthier plant earth. Note: Remember, many of these products are also delivered in non-biodegradable packaging polluting the planet.
In my initial elephant post, I chose the fashion industry (one of the largest manufacturing industries on the planet which is highly unregulated), as a prime example of wasteful consumer purchasing/consumption behavior fueled in part by marketing. Note:100 billion garments are produced a year; it is estimated 87% will end up in a landfill or an incinerator – only 1% of discarded clothing is recycled. Today I am staying closer to home and citing as an example AI in my industry of specialty, food & beverage; specifically, industry leader Nestlé. The company is utilizing Tastewise a platform which generates food intelligence (market research analytics) providing insights into restaurant items, home cooking trends, and real-life consumption (purchase patterns) incidences distilled down to a micro level (geographic location). The insights enhance marketing decisions to implement targeted/segmented campaigns (e.g., personalized marketing content, promotional strategies, etc.), plus lead to rapid product innovation (new product ideas) to maintain a competitive edge, continually finding new ways to appeal to consumer tastes and preferences. Their utilization of AI leads to better consumer engagement, and higher return on marketing investment.
In closing, as I stated earlier, generative AI is driving the “new age” of hyperpersonalization marketing. My concern is it will drive the overall consumption of goods and services – mankind will buy what they want versus only what they need. As a result, we will continue to drain the limited resources of Mother Earth.
Opinions Welcomed!