News » Technology News » Ethics Concerns Hold Back 75% of Businesses from Embracing AI: A Critical Hurdle to Overcome

Ethics Concerns Hold Back 75% of Businesses from Embracing AI: A Critical Hurdle to Overcome

by Tech Desk
1 minutes read
Ethics Concerns Hold Back 75% of Businesses from Embracing AI: A Critical Hurdle to Overcome

According to a new study conducted by marketing operations and workforce solutions consultancy, algomarketing, more than half of global marketing leaders (51.3%) identify cost as a major challenge when adopting AI and automation in their marketing operations. This research, the first of its kind, surveyed over 300 marketing leaders from companies with more than 10,000 employees to understand their current use of AI and automation.

The results of the study highlight the significant potential impact that AI can have on marketing operations. Nearly a quarter of companies (23.2%) reported a return on investment (ROI) of over 75% on their marketing spend. The majority (68%) saw an ROI between 50% and 74%. Importantly, no business team in the study reported less than a 50% increase in ROI.

Interestingly, the study found that US-based marketers were less likely to adopt AI technology compared to their counterparts in other regions. Only 26.7% of US-based marketers and 14% of those in Singapore said they have been using AI tools for the past three years. In contrast, 54.5% of Australian marketers and 45.3% of UK marketers reported using AI tools.

Furthermore, Australia and the UK are leading the way in terms of budget allocation for the next financial year. Two-thirds (65.5%) of respondents from Australia and 62.5% from the UK expressed commitment to increasing spending in 2024. These two territories also showed higher likelihoods of hiring additional talent compared to the US.

One key finding from the study is that marketers are facing a skills shortage and talent gap when it comes to implementing AI projects. Almost half (44.4%) of respondents mentioned difficulties in finding individuals with both marketing and artificial intelligence skills for such projects.

Another noteworthy insight is that ethical concerns around data used in AI marketing operations have caused delays in implementation for many companies. The majority (77.5%) of companies have postponed adopting AI and automation due to concerns about bias and equity, with 32.7% reporting significant delays.

Commenting on the research, Algomarketing CEO Yomi Tejemola emphasized that many of the world’s largest companies are underutilizing AI within their marketing operations teams. While these companies may be leveraging data and analytics to inform their strategies, they still rely on human interpretation and judgment for subsequent actions rather than utilizing AI and automation.

The study suggests that algorithmic marketing has the potential to move brands toward a future of autonomous marketing, where AI can interpret data, make decisions, and execute actions with minimal human intervention.

Accordingly, this groundbreaking study sheds light on the challenges and opportunities associated with adopting AI in marketing operations. It highlights the need for marketers to address cost concerns, bridge the skills gap, and overcome ethical barriers in order to fully harness the potential of AI in driving marketing success.

It is apparently (link: three-quarters of firms delay implementing AI due to ethics concerns.


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