Beyond interaction: Generative AI in conversational marketing - foundations, developments, and future directions

Abstract

This paper explores the integration of Generative Artificial Intelligence (AI) in conversational marketing, transitioning from traditional marketing to interactive, customer-centric strategies. It examines the shift from one-way communication to dynamic, AI-driven interactions that personalize customer experiences. Central to this study is how Generative AI facilitates real-time, tailored dialogues between brands and customers, enhancing customer engagement and satisfaction. The paper also addresses the challenges and ethical considerations of using anthropomorphic AI in marketing, balancing human-like AI traits with user expectations. Additionally, it presents a novel framework that conceptualizes the combination of Generative AI and anthropomorphism in conversational marketing into four distinct quadrants, providing a comprehensive analysis of their potential interplay. Conclusively, it offers strategic insights for leveraging AI in marketing while adhering to ethical practices, highlighting the potential of Generative AI to transform customer engagement in the digital age. This research has two important consequences. Practically, it offers valuable insights and strategic recommendations for businesses aiming to integrate Generative AI into their conversational marketing practices effectively. Theoretically, it contributes to the academic discourse by highlighting the transformative role of Generative AI in marketing, suggesting avenues for future research in this rapidly evolving field. This study provides a brief overview of the evolving role of AI in modern marketing strategies, emphasizing the future potential and implications of AI-driven conversational marketing.