Generative AI Impact on Marketing Agency

Background: By the end of 2022, a disruptive generative AI product, ChatGPT, was launched and impressed in both the B2C and B2B business field. Among the industries impacted, sales and marketing were identified as one of the most affected by McKinsey. This article focuses on marketing agencies and individual marketers, whose core business revolves around marketing campaigns. Problem Definition: In this paper, the fundamental capabilities of generative AI and its current applications in the marketing industry have been assessed. Furthermore, by considering both macro and micro-level factors and incorporating the influence of consumer perceptions on generative AI development, conclusions have been drawn regarding the impact of generative AI on marketing agencies. Methodology/results: First, this paper summarizes amount of literature and establishes that while the concept of AI has a long history, it is still in its early stages from a technical perspective. Its impact on the marketing industry is therefore worthy to take attention. This paper's analysis includes both qualitative and quantitative aspects. The macro-market analysis using the PEST framework indicates that the development environment is complex. Consumer-side surveys show that consumers' open attitudes are driving choices made by marketing agency clients. Ultimately, conclusions are drawn regarding the extent of the impact of generative AI products on marketers.