Marketing leaders struggle to achieve GenAI ROI effectively

Many marketing leaders are focusing on generative AI (GenAI) to improve their results, but they often miss the mark. While GenAI has become trendy, confusion remains about how to get a good return on investment (ROI) from these tools. According to a recent McKinsey survey, the use of generative AI in organizations increased from 55% in 2023 to 78% in 2024. Marketing and sales officers are eager to explore this technology, but not all tools are efficient. Some tools can be more of a hindrance than a help, similar to the old Microsoft Clippy assistant. The rise of GenAI has brought both opportunities and challenges, and history shows that new technology can complicate things. For example, when desktop publishing emerged, it allowed anyone to create content, but much of that content looked unprofessional. Bill Anderson, an expert in marketing revenue, suggests that leaders should carefully assess the potential benefits and limitations of GenAI before expanding their tech tools. Many organizations have multiple disconnected systems that confuse the customer experience and hurt revenue. When adding AI tools, companies often overlook hidden costs, such as processing and storage fees, which can add up quickly. A significant number of marketers are using AI in limited, ad-hoc ways and struggle to measure its impact. To create effective marketing strategies with GenAI, leaders must rethink their approaches. They should focus on essential data, rather than accumulating too much information that can lead to inaccurate insights and additional costs. Anderson recommends a principle he calls "minimum viable data equals most valuable data" (MVD = MVD). This means only using the most essential information for AI models. Marketing leaders should bring together their teams to define what the minimum data is for their GenAI projects. Together, they can experiment with targeted use cases to refine their outputs. Instead of relying on AI to replace creative work, marketers should use it to handle repetitive tasks, allowing creative professionals to focus on more strategic initiatives. Success in using GenAI starts with a clear understanding of objectives. By establishing a framework for measuring outcomes before implementing new tools, marketing leaders can better align their efforts and maximize returns from their investments in AI technology.