Artificial Intelligence (AI) is significant among evolving technologies due to its transformative potential in revolutionizing business processes, including marketing communications. However, with every technological evolution, there are inevitable questions and concerns. Is using AI in marketing communications in the wealth, banking, and insurance industries a friend or a foe?
Digital Wealth News met with Teresa Leno, CEO and Founder of Fresh Finance, to discuss the impact of AI on critical marketing communications functions in regulated industries like wealth, banking, and insurance and its potential implications.
“AI is no longer a far-flung dream but a tangible reality. Organizations leverage AI technology via fintech applications to analyze investor behavior, predict trends, and streamline administrative tasks. Examples of AI include chatbots for customer service, predictive analytics, and so much more,” says Leno.
Adopting AI provides several worthwhile benefits to the industry. First, AI enables more efficient data management and analysis. Given the sheer volume of digital data generated, analysis by human means can be a daunting task. AI, however, can sift through and analyze massive data sets, identifying trends and predicting outcomes with lightning speed. This results in faster, data-driven decision-making, giving organizations an edge over their competition.
Marketing communications teams can harness AI to personalize marketing strategies, content curation, and email personalization.
“AI can dramatically enhance personalization in marketing communications. AI can deliver content and recommendations tailored to each person by understanding content preferences individually. This level of personalization leads to higher customer satisfaction, increased loyalty, and provides insights for advisors to take action on,” adds Leno.
Leno points out that content recommendations and analytics are helpful to marketing communications teams because both tie accurate data to their communication strategy spending. Using AI to create content also reduces human capital when budgets are tight or content creators are hard to come by, something the industry needs help with.
However, despite all the benefits AI brings, it is not without its critics and challenges—skeptics of AI in marketing communications point to many potential downsides.
“One of the common concerns in using AI in marketing communications is the perceived loss of the ‘human touch’ in communication. While AI can mimic human communication in writing, it lacks the intuition, empathy, and creativity inherent in human communication. Let’s remember the ‘brand voice’ many organizations strive to deliver. This could lead to customers viewing the content as mechanized, uninteresting, or fake,” says Leno.
Another concern revolves around data privacy. The more personalized the communication, the more data required, which could increase the risk of data breaches or misuse, potentially undermining consumer trust.
A further disadvantage is the initial cost of implementing AI technologies. While the return on investment may prove beneficial in the long run, smaller businesses may struggle with the upfront costs.
Moreover, with the advancement of AI, there is a rising fear of job losses. Automation in marketing communications might reduce the workforce, stoking fears of unemployment and displacing workers.
In conclusion, while AI holds significant potential to revolutionize marketing communications, it is neither a complete friend nor a total foe. Instead, it is a powerful tool that can deliver remarkable results when used wisely and ethically.
Leno adds, “Organizations must integrate AI into their marketing communications process strategically, ensuring a balance between automation efficiency and the irreplaceable human touch.”
Teresa Leno worked as a financial advisor and experienced firsthand the importance of financial education to help clients make more informed decisions before a crisis. Through her experience, Fresh Finance was started as a financial content marketing solution to help advisors validate their expertise through sharing content.