AI is a must-Have skill for fractional CMOs

Fractional CMOs Need AI to Stay Competitive

Artificial Intelligence (AI) has emerged as a game-changer, completely altering how marketing tackles customer engagement, data analysis, and campaign optimization. As small business seek to harness the power of AI, the question arises: should their fractional CMO be proficient in this transformative technology? The answer is a resounding yes.

The Marketing AI Institute recently released their annual State of Marketing AI Report, and the findings reinforce just how essential AI proficiency is for today’s fractional CMOs. This blog post incorporates insights from this report, a comprehensive study conducted collecting responses from nearly 1,800 marketing and business professionals about AI and its role in marketing. The survey was conducted from March to July 2024, providing up-to-date data into AI adoption and understanding in the marketing industry.

Access the 2024 State of Marketing AI Report: https://www.marketingaiinstitute.com/2024-state-of-marketing-ai-report

AI adoption and understanding are on the rise among marketers. The 2024 State of Marketing AI Report revealed that 99% of survey respondents are personally using AI, with 36% saying AI is now infused in their daily workflows – up 7 percentage points from last year. Additionally, 61% of respondents now say they have an intermediate-level understanding of AI, up from 54% last year. Notably, the percentage of respondents who feel they “couldn’t live without AI” more than doubled, increasing from 6% last year to 15% today.

Why AI Matters for Fractional CMOs

A fractional CMO, or Chief Marketing Officer, is a seasoned marketing executive who provides part-time services to businesses. Their role encompasses strategic planning, campaign execution, and performance analysis, all geared towards driving revenue growth and achieving marketing objectives. In today’s digital world, a fractional CMO’s ability to leverage AI is critical for several reasons:

A large number of marketing teams are now piloting or scaling AI. The 2024 State of Marketing AI Report states that 51% of respondents say they are either piloting or scaling AI, compared to 42% last year. This significant shift indicates that AI is becoming increasingly integral to marketing strategies.

Data-Driven Decision Making: AI-powered tools can analyze vast amounts of data, uncovering valuable insights into customer behavior, preferences, and market trends. A fractional CMO with AI expertise can leverage this data to make informed decisions, refine marketing strategies, and optimize campaigns for maximum impact and ROI.

Personalization at Scale: AI enables businesses to deliver highly personalized experiences to customers across various touchpoints. A fractional CMO well-versed in AI can implement personalized 1:1 marketing campaigns that resonate with individual prospects and customers, fostering stronger relationships and driving conversions – and top line growth.

Automation and Efficiency: AI can automate repetitive tasks, freeing up the fractional CMO’s time for strategic initiatives. This includes tasks like data entry, report generation and analysis, and even content creation, allowing the CMO to focus on high-value strategic activities that drive business growth.

The top outcome organizations are looking to achieve with AI is to “reduce time spent on repetitive, data-driven tasks,” with 80% of respondents citing this outcome. This was followed by “get more actionable insights from marketing data” at 64%; “accelerate revenue growth” at 59%; “generate greater ROI on campaigns” at 58%; and “create personalized consumer experiences at scale at 54%.”

Competitive Advantage: Embracing AI can give businesses a significant edge over their competitors. A fractional CMO who understands AI can implement innovative marketing strategies that leverage the latest technologies, positioning the company as a forward-thinking leader in its industry and more importantly accelerating revenue and innovation.

What to Expect from an AI-Savvy Fractional CMO

When evaluating a fractional CMO, it’s important to uncover their level of AI proficiency. Here’s what you should look for:

Working Knowledge of AI Tools and Platforms: A qualified fractional CMO should be familiar with various AI-powered marketing tools, such as those used for data analysis, content creation, personalization, and automation. Ask them for specific examples and use cases beyond the big three of ChatGBT, Google Gemini and Microsoft Co-Pilot. This familiarity and expertise enables Chief Marketing Officers to identify suitable tools for your business and integrate them seamlessly into your marketing strategies.

48% of respondents rate their confidence in evaluating AI-powered marketing technology at a medium level, while 35% rate their confidence as high or very high. This reveals a growing comfort level with AI tools among marketing professionals.

Ability to Develop AI-Driven Strategies: Beyond understanding the tools, a fractional CMO should be capable of formulating and implementing marketing strategies that leverage AI to its full potential. This involves identifying opportunities for AI integration, setting measurable goals, and tracking the effectiveness of AI-powered initiatives – often across the entire organization.

51% of marketers are now piloting or scaling AI this year, compared to 41% last year. This shows a significant increase in the practical application of AI in marketing strategies.

Adaptability and Willingness to Learn: The field of AI is constantly evolving, so a fractional CMO should be eager to learn and test new technologies and techniques. This ensures that they can continue to leverage AI’s latest advancements to benefit your business.

67% of respondents say a lack of education and training is the top barrier to AI adoption in marketing. This stresses the importance of organizations to develop formal and informal learning and development programs.

Tip:

As your business integrates AI into marketing strategies, consider developing a clear AI policy for your website. This policy should outline ethical guidelines, data privacy practices, and transparency regarding the use of AI-generated content. To get started, you can leverage the Marketing AI Institute’s AI policy template as a helpful resource. By proactively addressing these considerations, you can build trust with your audiences and mitigate potential risks associated with AI implementation.

Marketing Institute Resource Page: https://www.marketingaiinstitute.com/resources

Only 34% of companies have generative AI policies in place. This represents a 55% increase from 2023, but still reveals a significant gap in formal AI governance among organizations. Furthermore, only 29% of organizations have an AI council in place, and just 19% of marketing teams have an AI roadmap or strategy to prioritize near-term AI use cases. This highlights the need for more structured approaches to AI implementation in marketing.

The Risks of Ignoring AI

A fractional CMO who lacks experience with AI or dismisses its potential may be hindering your business’s growth. In today’s competitive landscape, companies that fail to embrace AI risk will fall behind their rivals – it’s only a matter of time. An AI-averse fractional CMO may miss out on opportunities to leverage data-driven insights, personalize customer experiences, and automate processes, ultimately impacting your company’s bottom line.

The 2024 Marketing AI Report indicates that we stand at a crossroads, with marketing professionals increasingly infusing AI into their work but companies lagging behind in preparedness. 78% of respondents believe that more than a quarter of their marketing tasks will be automated by AI to some degree in the next 3 years. Respondents also expressed concerns about the speed and pace of AI development, the potential for misuse and abuse of AI, and issues related to privacy and security. Many worry about falling behind in their job skills and organizational survival due to the rapid pace of AI advancement.

Artificial Intelligence: Embrace the Future of Marketing

AI is no longer a luxury but a necessity for businesses seeking to thrive in the digital age. A fractional CMO with AI expertise can unlock a wealth of opportunities for your company, driving growth, enhancing customer engagement, and ensuring your marketing strategies remain competitive. When choosing a fractional CMO, prioritize those who understand the power of AI and can seamlessly integrate it into your marketing initiatives.

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