Thursday, July 18, 2024

AI’s Impact on Marketing Strategies and Risks

AI is changing how digital marketing works and simultaneously how customers experience things. With 64% of marketers recognizing AI’s critical importance in the coming year, its integration into everyday practices is undeniable. But as AI gets more common, worries about how much energy it uses and its impact on the environment are getting bigger.

Initially conceptualized by Alan Turing decades ago, AI’s practical application awaited advancements in computing power, now facilitated by the ubiquity of cloud technology. Yet, with this progress comes a reckoning with the energy demands of AI systems.

As more people use AI in the future, it will cause significant challenges, especially regarding energy use and environmental harm. For instance, enterprise AI leader Nvidia anticipates shipping 1.5 million AI server units annually by 2027, resulting in a significant rise in electricity consumption.

Moreover, AI-powered marketing campaigns, while promising personalized experiences for consumers, carry their own energy burdens. When marketers use AI to make ads for a plethora of companies and agencies, they have to think about how much energy it uses. If energy costs go up too much, AI campaigns might not make financial sense, so there needs to be a careful balance between trying new things and being environmentally friendly.

Regulatory groups are starting to deal with AI’s effect on the environment by suggesting rules to measure and report how much energy it uses.

Even though there are problems, people are still hopeful about what AI can do in the future. If businesses use technology wisely and simultaneously focus on sustainability, they can make the most of the new technology abreast of reducing its impact on the environment.

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