Tech Companies Overspending on AI Ads Despite Consumer Dislike: What’s the Strategy?

Are tech companies missing the mark when it comes to advertising AI to consumers? Despite research showing that consumers are not fans of AI, companies are still spending a significant amount of money on ads boasting about their AI capabilities.

According to a recent study commissioned by AI voice solution Tenyx and conducted by Centiment, seven out of every 10 consumers are frustrated with current virtual agents, and 55% said dealing with a chatbot would make them stop doing business with a company. This raises the question of why companies continue to push AI in their marketing efforts when it seems to be turning consumers away.

On the flip side, the Olympics showcased numerous ads touting AI technology, with technology companies spending about $196 million on TV commercials related to AI this year alone. This accounts for nearly half of their total spending on national TV commercials, according to TV measurement firm iSpot.

So, what would AI say about this marketing strategy? It’s an interesting question to ponder. Despite consumer sentiment towards AI, companies are still investing heavily in promoting it. Perhaps they believe in the potential of AI to revolutionize customer service and marketing, or maybe they are simply following the trend set by their competitors.

In the world of martech, there are several new developments in AI-powered tools and platforms. MetaRouter is partnering with Magellan AI to enhance ad performance data, AnswerRocket is teaming up with Kantar to provide gen AI-powered analytics, and Shapiro+Raj has launched an interactive AI personas platform. These advancements aim to help marketers better understand their data, produce insights, and improve advertising strategies.

HubSpot’s AI Search Grader is a free tool that helps brands assess their visibility in AI search engines, while Conversica has upgraded its Conversational AI platform to offer more flexible messaging options. Five9 has also introduced the Five9 Genius AI Suite, allowing businesses to create AI-powered customer experience journeys.

Despite consumer skepticism towards AI, tech companies are forging ahead with their AI marketing strategies. Only time will tell if these investments will pay off in the long run. Stay tuned for more updates on the latest AI-powered martech news and releases.