Businesses ought to be tech-savvy and AI patrons

There is no doubt whatsoever that in India Internet has already been democratized and is being widely used. And now, when India, along with many other countries in the world, sits on the cusp of an artificial intelligence (AI) revolution, the lives of nine out of every 10 internet users are touched by AI one way or the other. And this can be attributed to the enormous computing capabilities on their phones, connectivity and cloud infrastructure. Interestingly, the current AI user base of the country stands at 724 million. It is poised to grow YoY at six per cent. These are users who have used any of the AI features like image filters, personalized recommendations and smart devices, among other, if a recent study by Kantar, the world’s leading marketing data and analytics business, is anything to go by. Kantar ICUBE data suggests that ‘fitness’ and ‘social media’ apps are driving AI adoption in the country with an average of 2.3 AI-led features embedded in these applications. Entertainment apps are a close second, standing at 2.0 AI features on average. AI is also touching ‘digital commerce’ and ‘pharmacy apps’ at an average of 1.8 AI features each.

It is anticipated that many more digital commerce and entertainment apps will adopt AI features to enhance quality of customer experience and stay in line with the emerging trends. Instances of adoption, however, are slower in the ‘BFSI’, ‘job search’ and ‘short video’ apps segments, at an average of 1.2 features each. While AI technologies are touching most internet users in the country today, their usage is expectedly higher among the youth (19–24-year-olds) at 92 per cent and interestingly, and an equally high 81 per cent for the older (45+) age bracket as well. All these would have to be seen in light of the fact that Generative AI is set to become a $1.3T market by 2034 with a possible 42 per cent CAGR growth over the next 10 years.

We are sitting at a point of inflection where the next few years will enable a competitive edge between businesses that adopt technological innovations early. As the usage of AI grows rapidly, it is critical for marketers not to use AI in isolation and as a gimmicky fad, but weave in consumer behavioral data into it to remove biases, and continue to focus on building equity. It should not be to just run activations. One should remember that use of AI is inevitable. Historically, technology adoption has always been a dominant determinant of a brand’s trajectory. It is important to help marketers humanize AI to innovate successfully, help activate AI to predict future performance, maximize ROI and use AI strategies to build competitive advantage for a sustainable growth. Thereafter it should be consolidation. In order to be meaningful and relevant, the AI revolution should assist brand builders to strengthen creative testing, innovation using various AI based solutions. That’s the bottom line.