The State of GenAI Chatbots in Marketing

GenAI chatbots help businesses achieve positive results (in most cases)

by Anu Shukla

A whopping 73% of marketers are now using Generative AI (GenAI) tools for content creation, setting the stage for artificial intelligence to upend decades of convention. However, this rapid adoption of GenAI tools begs the question of how marketers are using them, and whether they’re being used to full effect.

We at surveyed 1,000 marketing professionals to understand the role of GenAI tools in marketing agencies today and to analyze potential applications of AI tools in the future. We found that the rapid adoption of GenAI is fueling stronger business outcomes, and there’s still untapped potential for businesses to pursue.

Who Is Using GenAI?

GenAI is being used across organizational sizes and industries, from telecommunications to construction. Adoption is skewed toward B2B companies, with 78% using GenAI compared to 65% of B2C companies. Given that AI tools are predominantly used to generate copy, the slant toward B2B businesses is unsurprising. While GenAI tools have advanced significantly in recent months, they still aren’t quite able to capture the human touch. However, they are capable of generating the kind professional language and tone that resonates with B2B audiences.

Barriers to Adoption

While GenAI has proven to be a powerful marketing tool, there are a few consistent concerns that have prevented non-adopters from implementing the tools into their workflows. One of the primary challenges cited by these individuals was team training, as 50% of the respondents expressed concern about the difficulty and time needed to adequately prepare their workforce to utilize AI efficiently. Ensuring that employees are well-versed in AI technology is crucial to optimize its benefits and prevent potential misuse. Furthermore, cost posed a significant barrier for 45% of the respondents, who felt that the financial investment required to implement AI systems was too high, making it difficult for smaller businesses or organizations with limited budgets to access and adopt the technology.

Privacy and security concerns were also a major hurdle for GenAI adoption, with 45% of respondents highlighting their worries about data breaches and unauthorized access to sensitive information. As AI systems often require large amounts of data for training and operation, the need for robust security measures to protect user privacy and maintain compliance with regulations is essential. Additionally, 31% of respondents pointed out that data scarcity was a challenge, particularly for niche industries or smaller organizations that might not have access to the vast data sets needed to train AI models effectively.

Another significant concern was content quality, as 29% of the respondents expressed doubts about the accuracy and reliability of AI-generated content. Ensuring the quality of AI outputs is crucial, as misinformation or poorly generated content can have negative consequences on businesses, public opinion and decision-making processes. Lastly, 24% of the respondents were worried about the potential for unethical biases in AI systems, which can lead to unfair treatment of certain demographics or exacerbate existing societal inequalities. Addressing these biases is an ongoing challenge for the AI community, as it strives to develop more inclusive, transparent and fair AI systems for a diverse range of users.

Despite these issues, non-adopters still plan to adopt GenAI, with 31% expecting to implement it within 12 months, and 46% within two years.

Benefits of Generative AI

The use of GenAI in marketing has been nothing short of transformative. More than half of businesses using GenAI reported an increase in marketing performance. This is likely due to GenAI’s ability to help in a digital landscape where speed is of the essence and companies need to respond quickly to market trends and consumer preferences. Nearly half (47%) of marketers responded that GenAI sped up their creative cycles. By automating many of the time-consuming tasks associated with marketing, such as content generation and data analysis, GenAI enables marketers to focus on higher-level strategic decisions and execute campaigns more rapidly.

The integration of GenAI in marketing strategies has also proven to be highly cost-effective, with 66% of companies reporting a positive ROI. Among these, 43% have experienced a 2x ROI, and 22% have seen a staggering 3x ROI. These impressive returns can be attributed to the AI’s ability to optimize campaigns in real-time, identify high-performing strategies and generate innovative creative ideas.

As these AI-powered systems continue to learn and evolve, they become even more efficient, providing further cost savings for businesses. According to our industry survey, 50% of respondents have reported improvements in cost efficiencies over time. This indicates that the longer a company uses GenAI, the more value it can extract from its investment, ensuring sustainable growth and long-term success.

The Power of Chatbots

While the applications and advantages of GenAI are clear, one element seems to be under-used: chatbots. In an age of information overload, personalization is crucial to capturing and retaining customer attention. Chatbots, powered by generative AI, have the capacity to analyze vast amounts of customer data, such as preferences, purchase history and browsing behavior. This information can be used to tailor marketing messages and create highly personalized interactions, resulting in a deeper connection with the customer and increased brand loyalty.

One of the most significant benefits of integrating chatbots into marketing strategies is the ability to provide instant customer support. By being available 24/7 to address customer inquiries and resolve issues, chatbots can improve overall customer satisfaction and enhance brand perception. This level of customer support can give businesses a competitive advantage by building trust and fostering long-term relationships with their customers.

As generative AI and chatbots continue to reshape the marketing industry, businesses must embrace these tools to stay competitive and ensure long-term success. By leveraging the power of chatbots and other generative AI applications, organizations can create more effective marketing campaigns, drive growth and foster strong relationships with their customers. The integration of these technologies represents a significant step toward the future of marketing, and businesses that capitalize on this opportunity will be well-positioned for success.

Reaping Rewards through GenAI Chatbots

Generally, businesses using generative AI chatbots are reaping rewards. As we found in a previous survey of 1,000 contact center professionals, respondents report:

Chatbots reduce customer call time 58%
Chatbots have smooth handoffs to human representatives 50%
Chatbots deflect and reduce the workload for humans 44%
Chatbots help improve key metrics such as average time to answer and customer satisfaction 28% 

GenAI Tools by Popularity

About three-quarters of respondents say their generative AI tools are trained on their proprietary content.

ChapGPT 55% 42% 36% 29%
Lensa 28%
DALL-E 25%
MidJourney 24%

Anu Shukla is co-founder and executive chair of, the GenAI Chat Cloud company. Today, the company offers industry-leading authoring, webchat and AI machine-learning capabilities to quickly and effectively convert more customers in healthcare, wellness, addiction, behavioral health, physical therapy and senior living centers. is the recipient of the Arizona Innovation Challenge “Most Outstanding Startup” award and a graduate of Alchemist Accelerator Class XXV, the No. 1 accelerator for enterprise startups.

Did You Know? More than 50% of marketers are using AI to create text, video and audio. Fifty-eight percent of marketers using GenAI tools report increased performance, while 66% report a positive ROI.

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