How AI is pushing CMOs to collaborate with emerging tech roles

With digital applications in marketing gaining importance, the additional introduction of roles like Chief Digital Officer (CDO) and Chief Technology Officer (CTO) have observed a growth from 2012 and 2023, wherein companies appointing a CDO grew from just 12.0% to 82.6%. 

The latest expansion of this role includes the Chief AI Officer (CAIO) as companies like WPP, Coca-Cola, and TVS Motor have appointed Daniel Hulme, Pratik Thakar, and Mahesh Calavai at the helm, respectively. 

While the successful impact of the added role still remains to be seen, Capgemini’s research shows that it is a collaborative effort with 40% of organizations forming dedicated teams for AI. 

This collaboration is also evident in marketing and is shifting a Chief Marketing Officer’s (CMO) role as AI gains more prominence across industries. 

Blending tech and human touch 

Referring to the research, Gaurav Mehta, Chief Marketing Officer, Noise asserts, “The emergence of CAIO signifies a concentrated effort towards AI’s potential, especially in industries like tech, finance, and healthcare where integration is transforming operations and enhancing customer experiences with ethical AI usage.”

He further notes that it is important to recognize that AI’s influence will extend beyond this and that CMO's role is ‘ever-evolving’, continuing that they must now be tech-savvy and data-driven and speak the language of algorithms and insights. 

“Understanding technology, data analytics, and AI-driven insights is no longer optional; it's essential for navigating the digital era and steering brands towards the future."

Godrej Capital’s Chief Marketing Officer, Nalin Jain sees a dedicated CAIO as a job role that could essentially revolutionise the way businesses optimize artificial intelligence across operations and help act as a promising development in harnessing the power of the technology. 

However, the successful integration of AI into marketing functions requires a comprehensive understanding of both AI capabilities and marketing strategies. With AI-generated data and automation, there is a need for a human aspect to navigate complex situations and make strategic choices. 

“A CAIO and a CMO together can help bridge the gap between the technical aspects of AI and the human touch required in marketing aspects,” said Jain.  

Alok Arya, Chief Marketing Officer at Research & Ranking remarks that the CAIO role knows no bounds regarding industry limitations. Instead, it thrives within organizations that prioritize data-driven innovation and fully grasp the transformative potential of AI.

Future Generali India Life Insurance’s Chief Marketing Officer, Geetanjali Chugh Kothari indicates the emergence of the CAIO as a significant response to the growing importance of AI in business operations. In the context of marketing, she believes the role signals a dedicated focus on harnessing AI's potential. 

“The CAIO is likely to collaborate closely with the CMO to align AI capabilities with marketing goals, thereby enhancing the precision and effectiveness of marketing campaigns.”

When asked about the industries that are most likely to get CAIO appointments, Kothari highlights the industries that are heavily reliant on data and analytics to gain a competitive edge. 

As an industry leader in the insurance industry, Kothari believes that the sector’s core functions, such as risk assessment, underwriting, and claims processing, hinge on comprehensive data analysis. A CAIO in the insurance domain can orchestrate the development of advanced AI algorithms and machine learning models, elevating the precision of risk assessment and enabling more competitive pricing. 

Godrej Capital’s Nalin Jain points out that tech-focused companies, giants and startups alike, can use CAIOs to develop AI strategies and implement AI-led solutions, while companies in the financial and banking space can use AI for risk assessment, fraud detection, algorithmic trading, and customer service enhancements. 

Other sectors include the retail segment, e-commerce, government and defence, education, and media and entertainment. 

However, the appointment of CAIOs in an initial phase would vary heavily depending on a company's size, objectives, and industry-specific AI applications, according to him. 

Vanda Ferrao, Chief Marketing Officer, WOW Skin Science is of the belief that this role won't disrupt marketing functions but rather complement them. AI is a tool that enhances strategies, and the CAIO's role would be to optimize its use across the organization, she affirms.

“Industries striving for a robust online presence and a keen focus on consumer engagement would be inclined to explore CAIO roles,” Ferrao foresees.

Reiterated by the experts, the integration of AI into marketing strategies is a collaborative effort that transcends departmental boundaries and Vanda Ferrao says, “For CMOs, embracing technology and AI isn't just a plus; it's an imperative for driving success in the digital age across various business functions.”

Integrating AI requires collaboration

Jain mentioned how collaboration is significant in integrating any new technological advancement into the organisation’s functionalities. 

When asked about the responsibility of integrating AI into marketing functions, Jain mentions that a CMO plays a crucial role in devising the overarching marketing strategy. However, the successful deployment of AI requires active participation from all divisions, as Jain suggests including:

• The tech team assumes the responsibility for establishing a robust infrastructure capable of supporting AI implementation and ensuring seamless integration with existing systems, data management, and security measures.

• The data analytics team uses their expertise in machine learning and data analysis to develop AI models and algorithms that can help extract meaningful insights from vast amounts of information. 

• The customer-centricity team to provide their valuable insights with respect to understanding customer journeys, pain points, and aspirations required for effective AI integration. 

Adding to this, Future Generali India Life Insurance’s Kothari comments that it is essential to foster collaborative synergy among various teams, including IT, operations, and customer services, all of which are integral nodes in the customer journey. 

“The CMO acts as the orchestrator of this collaborative effort, ensuring that AI initiatives align with broader business objectives and effectively harness the expertise of these diverse teams,” she continues.

Kothari further emphasizes that generative AI, in particular, forms the foundation of Future Generali’s current marketing strategy as the company has been actively exploring practical AI applications and is reshaping how it engages with customers and drives long-term retention.

It is not just Future Generali. Recent surveys have suggested that 98% of marketers use AI in some way with 45% of them experimenting with AI and 29% of them having already infused the latest innovation into their daily workflows. 

The research by the Marketing AI Institute revealed that CMOs are more likely to be responsible for AI adoption than other C-suite executives but less likely to understand it.

While 30% of CMOs are likely to say they have a beginner’s understanding of AI, 26% of them are least likely to be implementing it into their work schedules. Seeing as companies are seeking to hire marketing professionals with ‘ChatGPT experience’, employees, especially marketers, have started to upskill themselves. 

This is where cross-synergy plays a key role, allowing departments to bring out the desired results.

Alongside AI-driven automation, which has ensured the swift execution of time-consuming tasks, AI has reshaped the company’s resource allocation and budget management. By automating routine tasks and identifying high-ROI opportunities, it is achieving more with fewer resources. 

“This newfound efficiency enables us to reinvest in enhancing customer experiences, ultimately contributing to customer retention. Our focus is on transforming our communications to be more personalized, responsive, and efficient, with the ultimate goal of enhancing customer engagement and loyalty,” says Kothari.

CMO skillsets see an upgrade

The integration of AI has reshaped the expectations for potential CMOs, as per Alok Arya, Research & Ranking. They are now sought after for their data literacy and ability to extract insights from AI-generated data and tech-savviness is essential. 

Arya continues, “CMOs must use strategic thinking to infuse human elements into marketing with AI creatively. Precise personalization requires agility and an understanding of the target audience.”

With AI at the core, WOW Skin Science recently executed the WOW Vitamin C ‘Activated Naturals’ campaigns which had AI-generated content to highlight the core message of ‘Right Glow Wrong Place’. 

As per Ferrao, the campaign did well and received high engagement rates which established the fact that the audiences the brand is catering to, are ready to embrace and appreciate AI-generated content.

Alok Arya also addresses the responsible use of AI, compliance, transparency, and privacy to ensure ethical leadership. CMOs who master these skills will harness AI's transformative potential.

With this, a study by Boston Consulting Group indicates that most CMOs see positive results with the usage of gen AI, with 93% reporting a positive or very positive improvement in how they organize their work and 91% reporting a positive or very positive impact on their efficiency. 

Since real-time data plays a critical role in shaping campaign strategies and decision-making processes, Arya also mentions that CMOs who interpret and use this data effectively can quickly respond to changing market trends, implement corrective measures, and maintain campaign efficacy.

While traditional marketing expertise remains crucial, adaptability to new technologies is paramount, says Ferrao.

She highlights that it's not just about marketing, but that AI's impact transcends into finance and technology realms. A key skill set that CMOs must possess is an open mindset, embracing continuous learning and staying abreast of emerging tools and trends. 

“CMOs must comprehend AI functions across the organization. Openness to continuous learning is paramount, even with years of experience. Understanding AI enables data-driven decision-making, personalized customer experiences, and innovative strategies. It's about staying agile in an ever-evolving landscape,” Ferrao comments.

As AI shifts the marketing landscape, CMOs are strengthening their marketing arsenal and getting ready to collaborate more with newly emerging tech roles across departments.