The Future of Digital Marketing: How Would Artificial Intelligence Change the Directions?

Technological advancements have made the most disruptive change in marketing and consumer behavior in the last few decades. The history of change suggests that technology has entirely transformed the media from cable TV to more personalized technologies. In particular, the Internet and other relevant information technologies and platforms such as social media, powerful search engine, big data, mobile apps, and augmented reality are redefining marketing theories and practices. These advancements, on the one hand, have enabled marketers to enhance customer relationship and engagement. On the other hand, customers are becoming more powerful than sellers in creating and controlling the information content. Artificial intelligence (AI), the use of computerized programs and machinery that exhibit human intelligence, is expected to have even much greater impact on marketing and customer behavior than social media and other recent advancements. Applying a desk research method, the primary purpose of this chapter is to highlight the present state of the application of AI in marketing with a focus on digital marketing. The chapter also aims to identify the future directions of digital marketing with AI as a potential major driver. The major hotspots identified for future research include future marketing jobs and relevant skills, change in consumer decision making, AI-driven social media marketing and new product development, enhanced recommender engine, and augmented reality marketing. Practically, the findings will help marketers better prepare for designing marketing strategies for ever-emerging and more empowered digital consumers.