eMarketer Webinar: Artificial Intelligence—The Future Is Already Here

3. © 2016 eMarketer Inc. Hollywood has done some dramatic portrayals Image credits: Cryteria/Wikimedia Commons, Stephen Bowler/Wikimedia Commons, Helloclaire/Wikia.com #eMwebinar HAL 9000 Terminator Robots Samaritan

6. © 2016 eMarketer Inc. AI comprises several core technologies, but is often known by different names  Machine learning  Neural networks  Deep learning  Expert systems  Computer vision  Machine translation  Natural language processing  Natural language generation  Chatbots  Virtual digital assistants  Computational linguistics  Recommender systems  Predictive analytics  Cognitive computing  Augmented intelligence  Man-machine learning  Algorithmic assistance  Cognitive augmentation  Intelligence amplification #eMwebinar Core Technologies Major Applications Other Names

7. © 2016 eMarketer Inc. AI has had a long and difficult history “Artificial intelligence as a name was reserved for mysterious stuff that was beyond the state of the art.” —Mark Torrance, Chief Technology Officer, Rocket Fuel  A lot of early researchers overpromised on AI, giving it a bad rap  As new technologies based on AI became mainstream, they were renamed other things  Computing power has recently advanced to support more of AI’s full potential #eMwebinar

8. © 2016 eMarketer Inc. Some AI isn’t always called AI “We prefer to think of machine learning as ‘algorithmic assistance.’” —Mike Paquette, Head of Security Strategy, Elastic “We call it machine learning, because I think [artificial intelligence] sometimes can spook some folks.” —Mahesh Tyagarajan, Chief Product Officer, RichRelevance #eMwebinar

9. © 2016 eMarketer Inc. And many businesspeople are using AI without even knowing it #eMwebinar Source: Narrative Science, 2016 37%Businesspeople who say they are using AI technologies in the workplace 88%Businesspeople who are actually using technologies that rely on AI

11. © 2016 eMarketer Inc. So … what are we really talking about? Neural Networks: Machine learning algorithms trained with specific sets of data points, which they use to guess at an answer to a query. The network’s guess is then compared with the correct answer for each data point. If errors occur, the “neurons” are tweaked and the process repeats itself until the error levels decrease. Deep Learning: A branch of machine learning concerned with building and training neural networks with multiple layers. Each layer of a network can find patterns in the output of the layer above it. Deep networks excel at sorting and classifying data and identifying anomalies in data patterns. #eMwebinar Machine Learning: The branch of AI computing that involves training algorithms to perform tasks by learning from previous data and examples rather than explicit commands programmed by humans.

12. © 2016 eMarketer Inc. AI is already a part of everyday life Self-Driving Cars Fraud Detection Digital Assistants Image credits: Michael Shick/Wikimedia Commons, Pixabay, Tej3478/Wikimedia Commons #eMwebinar

13. © 2016 eMarketer Inc. Global estimates for the AI market are disparate, reflecting the market’s relative immaturity $5B by 2020 Source: MarketsandMarkets, February 2016 $15B by 2021 Source: BCC Research, March 2016 $37B by 2025 Source: Tractica, August 2016 #eMwebinar

14. © 2016 eMarketer Inc. Why now? Several factors are driving adoption Image credits: Pixabay Successful use cases Collaborative academic community The internet of things (IoT) and data overload More powerful, yet smaller and less expensive computing power Tech giants with deep pockets Innovative startups #eMwebinar

19. © 2016 eMarketer Inc. The many faces of AI for marketing Image Credits: Pixabay, The Weather Company Marketing Intelligence Lead Generation Call-Center Technology Bots and Virtual Assistants Smarter Search Interfaces Recommender Systems Content Creation Brand Building AI-Driven Advertising Campaign Optimization

22. © 2016 eMarketer Inc. Turner Broadcasting uses IBM Watson technology to uncover insights for advertisers  Watson ingests first- and third-party, structured and unstructured data  Makes automated recommendations to help optimize TV campaigns  Combined with predictive analytics from Neustar’s MarketShare product #eMwebinar

23. © 2016 eMarketer Inc. BBC uses Thoughtly’s Ellipse to identify themes in its worldwide content  Analyzes unstructured program descriptions and viewing data  Identifies overrepresented and underrepresented themes in programming  Helps match programs with most appropriate audiences Image Credits: BBC Worldwide, Thoughtly #eMwebinar

25. © 2016 eMarketer Inc. Some AI companies specialize in lead and demand generation Conversica uses AI to contact, qualify and nurture sales leads #eMwebinar Mariana uses AI-based social targeting to identify and convert sales prospects Image credit: Mariana Image credit: Conversica

26. © 2016 eMarketer Inc. The Weather Company is rolling out interactive “cognitive” ads  First advertising application for IBM Watson  Will enable consumers to have voice- or text-based conversations with brands  The Campbell Soup Co., GSK Consumer Healthcare and Unilever will be among the first to try them out Image Credits: IBM, The Weather Company #eMwebinar

29. © 2016 eMarketer Inc. Rocket Fuel uses “moment scoring” to buy and optimize programmatic advertising • Platform learns from customer interaction to optimize media spend • Assigns scores to each “moment” based on the goal • Moments are determined by demographics, behaviors and/or contexts Image Credits: Rocket Fuel #eMwebinar

30. © 2016 eMarketer Inc. Harley-Davidson NYC is using Adgorithms’ “Albert” to build lookalike models “Currently, we attribute 40% of Harley-Davidson New York motorcycle sales to Albert. … Albert not only determines when and where we should display content, but also provides feedback on how that content is performing.” —Asaf Jacobi, President, Harley-Davidson of New York City Image Credits: Harley Davidson of NYC, Adgorithms #eMwebinar

32. © 2016 eMarketer Inc. Google uses RankBrain to help with every search  Machine learning assists with vague and ambiguous queries  AI is the third-highest signal (out of more than 200) contributing to a search query result  Will affect how content is created going forward Source: Google; Image Credit: Pixabay #eMwebinar

33. © 2016 eMarketer Inc. LHW works with WayBlazer to improve the hotel research and booking process  First Watson application in travel industry  Can highlight unique features of hotels for specific customers  Trip Discovery tool enables searches by concepts (beaches, family, etc.) and pulls up personalized images Image Credit: WayBlazer #eMwebinar

35. © 2016 eMarketer Inc. Recommender systems are getting better Pandora uses content-based filtering based on user preferences to suggest songs similar to ones liked Amazon uses collaborative filtering to customize users’ searching and browsing experiences based on what similar others have liked #eMwebinar

36. © 2016 eMarketer Inc. Stitch Fix has used recommendation algorithms since 2012  Augments human stylists with machine learning  Uses hundreds of algorithms to match clothing and accessories to tastes and budgets  AI “most salient aspect of company” Image Credit: Stitch Fix #eMwebinar

38. © 2016 eMarketer Inc. Swedbank uses “Nina” to communicate with customers and free up reps to sell  Uses natural language processing technology from Nuance Communications  Answers routine questions from customers and frees up service reps to do more selling  Handles almost 40,000 conversations a month Image Credit: Swedbank #eMwebinar

39. © 2016 eMarketer Inc. 1-800-Flowers and HealthTap use Facebook’s Messenger bot #eMwebinar Finds answers to previously posted questions or connects users with doctors Takes orders or connects customers with human reps

40. © 2016 eMarketer Inc. And of course there are physical robots! Image credits: (c) 2016 Hilton Worldwide, SoftBank #eMwebinar Hilton’s “Connie” robot concierge answers guests questions about local attractions and services SoftBank’s “Pepper” robot can read human emotions and change its behavior accordingly

43. © 2016 eMarketer Inc. Wordsmith generates more than 1.5 billion pieces of content per year for 42 industries “[We] generated more content than any company in the world last year … everything from AdWords reporting to ecommerce product descriptions, real estate listings and everything in between.” —Robbie Allen, Founder and CEO, Automated Insights Image Credits: Automated Insights, Yahoo #eMwebinar

45. © 2016 eMarketer Inc. Kia worked with Influential and Watson to amplify its campaign for Super Bowl 50 Image Credit: Kia Motors America  Analyzed Facebook, Twitter and Instagram posts to pick top 100 “social media influencers” based on personality traits  Sent colorful socks to influencers and asked them to post with hashtag #AddPizzazz #eMwebinar

46. © 2016 eMarketer Inc. #eMwebinar TD Ameritrade worked with Havas Cognitive and IBM Watson on “Most Confident Fans” Campaign “It allowed us to test AI with minimal risk and delivered learnings that are being applied to benefit other areas of the business.” —Dedra DeLilli, Director, Social Media and Corporate Sponsorships, TD Ameritrade Image Credit: TD Ameritrade

48. © 2016 eMarketer Inc. Experimentation and patience are key to success “The most important thing is to allow freedom to experiment, because nobody within organizations really understands very well how an AI should work or what to expect. And there’s no clear format that will fit all the different situations.” —Alberto Rey Villaverde, Head of Data Science, easyJet “Be patient and understand that AI takes time to learn the marketplace. … AI is an opportunity for growth, and if you have at least the content or something right, data will get you there.” —Asaf Jacobi, President, Harley-Davidson of New York City

49. © 2016 eMarketer Inc. And experts have other advice, too  Have a plan: Define an end goal for what you want to accomplish or a business problem you want to solve.  Be flexible and open to discovering new things along the way; be as nimble and agile as possible.  Don’t jump into anything too overwhelming all at once.  Do small pilots to test the solution with limited risk.  Test and learn in stages; work the kinks out before launching at full scale.  Be honest about success and failure, and learn from both. #eMwebinar

52. © 2016 eMarketer Inc. Their fears are not without merit #eMwebinar Image Credit: Pixabay Forrester Research predicts robots and other AI technologies will replace 16% of the US jobs currently done by humans by 2025 ?

53. © 2016 eMarketer Inc. But it may not be as dire as they think #eMwebinar Image Credit: Pixabay The same study found that AI-related technologies would create 8.9 million new US jobs in the same timeframe

54. © 2016 eMarketer Inc. AI has potential to benefit human workers in important ways “[AI lets] the machine do things it can do very well, but then allows the human to bridge that gap. It’s the human understanding what the machine is trying to do and then saying ‘I’m going to help nudge you so you can do a better job.’” —Mahesh Tyagarajan, Chief Product Officer, RichRelevance “We’re liberating the marketers back to the place where they can drive the marketing with creativity, with ideas, and not just by changing bids and Google AdWords or scheduling email campaigns. These are not jobs for humans. There’s too much work to be done.” —Or Shani, Founder and CEO, Adgorithms

55. © 2016 eMarketer Inc. Key takeaways  After years of false starts, conditions are finally right for mainstream AI adoption. Forecasts vary widely, but all agree that the market is growing.  AI’s use in marketing is still in early stages, but nearly all industries are experimenting.  Marketing intelligence, campaign optimization, content creation, customer experience and brand building are just a few applications of AI in marketing.  The jury is still out on the long-term effects AI will have on marketing jobs, but many experts believe it will free up humans to do more high-value work.

61. © 2016 eMarketer Inc. Learn more about digital marketing with an eMarketer corporate subscription Around 200 eMarketer reports are published each year. Here are some recent reports you may be interested in: Q&A Session Made possible by You will receive an email tomorrow with a link to view the deck and webinar recording. To learn more: www.emarketer.com/products 800-405-0844 or webinars@emarketer.com Victoria Petrock Artificial Intelligence for Marketers: The Future is Already Here  Artificial Intelligence for Marketers: The Future Is Already Here  Virtual Reality and Beyond: The Current State and Future Potential of Immersive Digital Marketing Experiences  Artificial Intelligence 2016: What’s Now, What’s New and What’s Next  The Internet of Things: The Complete Industry-by-Industry Guide for Marketers

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