The opportunities of using artificial intelligence in digital marketing

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The opportunities of using artificial intelligence in digital marketing

Tamar Makasarashvili

Doctor of Economics, Professor

Gori State University, Gori, Georgia

Giuli Giguashvili

Doctor of Economics, Professor

Gori State University, Gori, Georgia

Summary

Interest in artificial intelligence is rapidly growing in the modern world. It is believed that soon artificial intelligence will become a catalyst for the development of humanity. Through using AI, it is possible to expand the economic boundaries between countries and businesses. We can safely say that there is no future without artificial intelligence. Accordingly, the use of artificial intelligence use is one of the promising directions for economic well-being in our country. Artificial intelligence is already among us, and in our professional and daily activities it participates in one form or another, mostly unintentionally. Artificial intelligence (AI) has transformed many industries in recent years, and digital marketing is no exception. In particular, artificial intelligence can analyze large amounts of data, make predictions, and provide personalized experiences. Because of this, artificial intelligence has become a powerful tool for marketers. It is changing the way companies interact with customers and helping to increase the number of sales.

The article examines the features of using artificial intelligence in marketing and defines the possibilities for its improvement.

Keywords: digital marketing, artificial intelligence, sustainable economic growth.

Introduction

Modern information technologies, the Internet and the new digital reality have led to the creation of e-business and e-commerce systems, which differ from traditional activities by adding virtual capabilities that dramatically increase its effectiveness. Over time, the global information space has occupied a large part of our daily life, shaped the world's economic, political and social environment, changed the relationship between people, and covered almost all areas of activity, such as education, health care, economy, etc. That is a unique system, the development of which contributes to the economic growth of different countries in the world. A relatively strong branch of the Internet market, such as ecommerce, allows entrepreneurs to create an open market anywhere in the world and achieve a competitive advantage by improving customer service. One of the directions of electronic commerce, such as online sales, which involves the sale of goods and services through Internet technology, is developing at an unreal speed in the world [1].

For the success of online business and e-commerce, it is necessary to advertise and activate marketing activities, which are not only effective but also a necessary component of any business activity. Internet advertising is considered the most effective means of communication and information above the audience. Its market is very dynamic and will become the driving force of the Internet market. Advertising on the Internet is much cheaper than using mass media, print media or trains.

The invention of the Internet is rightfully considered the beginning of the information age and the greatest achievement in human history, as it changed the way we communicate and do business. The digital age offers marketers new, exciting ways to get to know consumers and create goods and services tailored to their needs, helping marketers to both engage with large groups of consumers and establish one-to-one communication. The rapid development of this new field gave rise to a new marketing direction - digital marketing, which involves buying and selling information, services and goods using the Internet. Today, the Internet marketing concept has expanded to include more opportunities to be closer to the customer [2].

Due to the fact that information technologies and systems were introduced much later in Georgia, the electronic market of Georgia is significantly behind the electronic markets of other countries in the world in terms of development level. Thus, the aim of the paper is to identify the problems in the development of digital marketing in Georgia, evaluate and analyze the effectiveness of digital marketing and modern trends, and offer relevant recommendations for Georgian companies.

The research purpose and objectives

artificial intelligence digital marketing

The study's purpose is to reveal the problems in the development of digital marketing in Georgia, to study the features of using artificial intelligence in digital marketing, and determine the opportunities for its improvement.

Research methodology

In the research process, relevant scientific literature and studies were reviewed, a comparative analysis of the retrieved materials and statistical data was carried out, and certain conclusions and recommendations were developed.

Literature review

Digital marketing is the biggest challenge of the modern era. It is not by chance that the 21st century is called the "century of marketing." Marketing is often equated with selling and advertising, but in fact, both are part of the marketing mix. The market economy has brought success to enterprises and organizations that apply progressive technologies to meet the needs of society. Marketing in business involves a thorough study of the consumer market, comprehensive analysis of consumer tastes, and construction of production activities based on this, as well as determining the active impact of production. A necessary condition for the effective implementation of business is to conduct it with a marketing approach. Marketing is about managing profitable customer relationships. Its aim is to attract new customers by offering high-value propositions and to retain existing customers by constantly looking after their satisfaction. Marketing is certainly found in traditional forms with any commercial establishments, television, magazines and e-mail. In recent years, marketers have developed a number of new approaches, from creative websites and online social networks to mobile phones. Contact is personal and direct. Today's marketers want to become part of our lives and enrich our experiences with their brand offers [3].

Today, marketing should be understood not in the old way - "telling and selling" but in a new way - to meet the customers' needs. No professional marketer misses an opportunity to build new relationships with buyers, marketing partners, and the world. Modern marketing companies prefer to know and interact with their buyers. They aim to attract and retain profitable buyers with a long-term perspective [4]. Thus, modern companies interact through new ways to obtain superior value and build relationships with buyers. Marketing is closely related to human existence, life, past, present and future. Therefore, what marketing will be like considerably depends on the world and humanity's future in general. Some people think that only big firms should be interested in marketing services. However, marketing determines the success of all firms, whether commercial or non-commercial, national or international [5].

Modern economic conditions in the world and Georgia, globalization and acceleration of development processes of markets, technologies, socio-political factors, development of information society, growth of dynamics and volumes of business information require continuous improvement of digital marketing management forms and methods. Marketing coordinates the company's forces (including the development of new products and services, production, finance, realization, etc.) to achieve general corporate strategic and operational goals with an orientation to market requirements, ensures interaction with customers and business partners. In connection with the development of modern methods of communication using digital technologies and electronic devices, digital marketing is constantly developing and expanding its fields of application. The number and variety of electronic devices are constantly increasing, including new types of computers, mobile phones and smartphones, tablets, digital bulletin boards and interactive screens, game consoles, home theaters and music centers, navigation systems and others. The tendency of chipping covers an increasing number of different devices and tools. Digital information and communication technologies are constantly developing, including network technologies, digital television and radio, mobile connection technologies, geolocation technologies, multimedia data transmission technologies, and others [6].

Discussion/Results

The proper functioning of artificial intelligence depends on the collection and storage of large amounts of data, which requires enormous effort and resources. In 2019, the Artificial Intelligence Business Association was founded in Georgia, which continues to work in this direction and contributes to its development. At present, there are many companies in the market of Georgia that promote the introduction of artificial intelligence and increase business efficiency and process optimization through it [7]. A clear example is the company based in Georgia - MaxinAI, and its cooperation with such companies as Phubber, Liberty Bank. Since 2017, MaxinAI has been providing the market with high-tech and innovative approaches to artificial intelligence and "Big Data" [8].

Maximum digitization of processes, increase in scale, quality maintenance and improvement - these are the directions that MaxinAI and Phubber cooperation serves. By collecting and analyzing data, the company ensures that product categorization, personalization, and customized offers play a vital role in business success. It is also worth noting that MaxinAI, the artificial intelligence development company, has become a partner of the American software giant - Salesforce, which is known worldwide for CRM (customer relationship management) platform development.

Digitization of marketing and business processes, e-commerce development, customer experience and quality improvement is a short list of directions with which the effective integration of artificial intelligence can bring unprecedented results [9].

The use of artificial intelligence in digital marketing is appropriate in various directions, among which the most relevant are the following:

* Data analyzing and customer behavior prediction. In this case, with the help of artificial intelligence, digital marketing companies collect, analyze and process a large amount of data regarding customers to determine their activities and interests, through which their behavior will be determined in advance. For example, a company can use artificial intelligence to analyze the behavior of its users on social networks to determine which products or services are most popular among them. AI can also be used to predict demand for certain products or services, allowing companies to plan marketing strategies more effectively.

* Personalization of content and offers. In this case, artificial intelligence allows companies to create more personalized content and offers for their customers based on their views and interests. For example, artificial intelligence can be used to analyze a customer's purchase history and search queries in order to offer them a personalized product or service. It is also possible to create personalized emails and advertisements with the help of artificial intelligence to attract users.

* Marketing campaigns and advertising management automation. At this time, artificial intelligence allows companies to automatically run and manage advertising campaigns, thereby optimizing advertising costs and increasing advertising effectiveness. For example, artificial intelligence can be used to determine the optimal time and channel for the distribution of an advertising message, as well as to analyze the effectiveness of advertising campaigns in order to optimize the advertising budget.

* SEO optimization. In this case, artificial intelligence helps companies optimize their websites for search engines and improve their position in search results. The use of AI for SEO optimization can include keyword analysis, the use of machine learning (to determine the best optimization methods), competitor analysis, and creating content based on user interests and requests.

* Content generation. Here, content such as headlines, articles, descriptions of products and services, as well as social media content can be created with the help of artificial intelligence. AI can create content tailored to the interests and needs of a specific audience by analyzing large volumes of data and processing information.

The use of artificial intelligence in digital marketing has many positives as well as negatives. When listing the positive aspects, it is necessary to mention the increase in efficiency, accuracy and speed of work, optimization of costs and increase in profit. In particular, artificial intelligence allows companies to analyze customer data more quickly and accurately, which helps them make better decisions and reduce the cost of marketing activities; The use of artificial intelligence allows companies to increase the accuracy of their forecasts and decisions, as well as reduce the time required for data processing and market research; By improving the efficiency and accuracy of marketing strategies, companies can increase their profits while providing a higher level of customer satisfaction, and finally, artificial intelligence can help companies optimize marketing costs, allowing them to reduce costs and increase revenue [10].

When using artificial intelligence in digital marketing, along with the positives, its negatives should be considered, namely, the dependence on technology, the risk of errors and failures. Artificial intelligence use in digital marketing requires the presence of relevant technologies and experts in this field, which can be difficult and expensive for some companies, especially in our country. Finally, although artificial intelligence allows companies to improve their marketing strategies, there is a risk of errors and omissions that can negatively affect the business [11 ].

Despite everything, artificial intelligence use in digital marketing has no alternative. It helps companies improve their marketing strategies and increase their effectiveness. As for the risks, most can be overcome through the appropriate safety measures adoption, effective quality control systems, and personnel training.

The ability of artificial intelligence to help companies increase profits and competitiveness requires a balance between artificial and human components. In order to create unique digital marketing campaigns and meet customer needs, it is necessary to use artificial intelligence together with creativity and intuition [12].

Conclusion

Hence, it is significant to implement artificial intelligence in digital marketing. That may involve integrating AI solutions into existing marketing systems and processes or creating new ones. However, when implementing artificial intelligence in the marketing strategy, it is essential to consider the ethical and legal implications (privacy and security) of using artificial intelligence technology. It is imperative that AI solutions comply with all relevant regulations and guidelines. In addition, it is necessary to consider the potential impact of artificial intelligence on employees and customers and take appropriate steps to mitigate any negative impact.

In the future, the use of artificial intelligence in marketing is expected to be a game-changer for businesses as artificial intelligence continues to evolve and become more and more sophisticated. With the development of artificial intelligence technology, companies will be able to obtain more valuable and in-depth information regarding consumer behavior and preferences and create more targeted and effective marketing campaigns.

Overall, artificial intelligence use in digital marketing is expected to bring significant changes and advancements in the field. Companies will be able to create a more personalized and attractive service for customers, which will inevitably lead to increased sales and customer loyalty. In addition, AI can help companies make better use of their data and make more informed decisions about marketing strategies, which will improve their return on investment and make them more competitive in the market.

Although automation and the use of AI are associated with job losses, it is of utmost importance for the country's sustainable development to assess the full potential of AI technology, maximize the benefits, minimize the risks and digitize the economy in an accelerated manner. In the near future, the increasing integration between human and digital workers will create a new hybrid workforce that is expected to reduce costs, improve efficiency and create better products and services for customers, and artificial intelligence will become a catalyst for human development.

Intelligent technologies do not mean only the emergence of high-tech startups in the market. The main thing is the consistent introduction of intelligent technologies in all sectors of the economy, which is possible through the joint efforts of the state, business and educational sectors. The barriers that exist in this direction primarily include the problems in the education system and the absence of a digital entrepreneurial culture, which are the prerogative of the state to solve.

In order to strengthen economic stability, it is necessary to realize the maximum potential of digital technologies and artificial intelligence in the country, thus, strengthening the image of Georgia as a leading reformer in the region.

References:

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[8] MaxinAI, https://www.maxin.finance/about-us

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