Is AI a Sucker Punch for Marketers Struggling to Survive?

By John Mullins, Associate Professor of Management Practice in Marketing and Entrepreneurship at the London Business School

The Financial Times recently reported that startup failures in the US rose 60 percent last year. Data from Carta, a service provider to private companies, reveals that 254 customers supported by businesses went bankrupt in the first quarter of 2024, a rate that is more than seven times higher than in 2019.

It has always been that way. It is at times like these that the enduring qualities of an entrepreneur come to the fore. Flexibility, passion, and patience for achieving long-term goals, while being flexible and resistant enough to, where necessary, open a business – all become important qualities in difficult times.

Is AI the new threat?

But what about Artificial Intelligence (AI), a newcomer to the business world? Does AI represent a new and present threat to the skills, imagination and excellence of the entrepreneur? Does it represent the last straw that will push the ingenuity and ingenuity of human trafficking to the canvas floor?

The potential for businesses using AI to increase their profits is another factor that has really affected the stock market over the past few years, but it’s important to note that AI businesses themselves have struggled to generate significant profits. growth.

Products such as chatbots, advanced search engines, and image generation do not appear to have strong monetization mechanisms even when stock market values ​​for companies in AIs dropped in the summer of this year, there was a growing feeling that the AI ​​bubble had burst.

Booms and bubbles aside, can AI change the way entrepreneurs develop and implement strategies to help them grow and survive, even thrive? Research suggests that AI can help innovation by automating mundane tasks, enabling entrepreneurs – like anyone else – to focus on problem solving and strategic thinking. Concerns have been surprisingly raised, however, about the potential displacement of human intuition and creativity in business decision-making due to over-reliance on AI.

For entrepreneurs, generative AI can help with researching ideas, coming up with marketing collateral, creating a website, and more, but the main benefit of AI should be its ability to develop human skills. It is impossible to imagine surrendering to AI the human creativity, empathy and courage required for the role of an entrepreneur. No backward-looking algorithm can match these forward-looking skills. But it is possible to think of AI as a tool for entrepreneurs.

An empowerment, not a threat

If AI development is not carefully controlled, many argue, humanity risks its own extinction. Politicians say that technology is advancing at such a fast pace that there must be protection for the public. California is considering a law that, in the event of misuse of an AI model, would hold liable not only the responsible party but also the original developer of the model.

I do not share the dystopian view of the future. We humans are too smart to lose our souls to science. And I don’t believe we’ll get to the point where AI-based technology will be running all of our content.

What’s more likely is that AI will actually produce more entrepreneurs, probably many of them running their own small businesses, at least initially. Perhaps the fastest growing and becoming the largest companies thanks to AI, as the fastest growing companies have been for decades, will create almost all the jobs. new to the world. In addition, thanks to Moore’s law and the development of digital technology, they will be running businesses with a global reach – real professionals, able to do business anywhere.

When I look at the world in 2024 and beyond, I see a bright future at hand. Our change towards entrepreneurship and adaptability inspires us greatly.

So, how can AI be used meaningfully in the business arena?

Marketing and sales

AI can help you reach the right audience with the right message at the right time. AI can be used to create personalized letters, targeted marketing campaigns, and chatbots are becoming essential for today’s customer service platforms.

Rapid prototyping quickly. AI can accelerate product development by analyzing customer feedback, spotting trends and generating ideas.

To help you save costs Improving operations with AI can lead to cost reductions and operational gains.

Predictive analytics

By using predictive analytics, marketers can predict trends, anticipate customer behavior, and make informed decisions.

In general

AI is about being efficient and intelligent. Don’t be intimidated by the idea of ​​a new big idea, but instead, look at the low results. Find ways to open a faster time to market solution; and improve product quality and differentiate your business significantly by using powerful AI analysis of user feedback.

John Mullins is Associate Professor of Management Studies at the London Business School. He is also the author of Beat the Laws! Six entrepreneurial ideas that can help anyone change the world.