Generative Artificial Intelligence and Advertising

Abstract

Generative artificial intelligence, the new buzzword in technology, is the next step in the evolution of traditional artificial intelligence. Unlike traditional AI that excels in data analyzing and automating processes, generative AI (GenAI) is a pioneer in creating new and original content. GenAI is very close to human intelligence, capable of logical thinking, imitating human behavior and armed with decision making capabilities. Generative AI creates new texts, images, music, 3D designs and codes, thus strongly influencing the activities, strategies, and consumer interactions of various industries. Key industries most affected by GenAI are banking and finance, retail and consumer goods, medicine and pharmaceuticals, education, media and marketing. In marketing, generative AI is significant in the process of personalization, content creation, audience engagement and interactions, performing the STP strategy (segmentation, targeting, positioning), market research, etc. Although it has great advantages, GenAI also has significant limitations, such as unresolved ethical issues, the spread of outdated or imprecise data, lack of legal regulation and control, etc. This paper, with the aid of secondary research, is aimed at exploring the possibilities of GenAI and its impact on marketing, especially advertising.