Abstract

Artificial intelligence is the capacity of the machines to function , react , reason like humans ,
solve problems and handle every situation like humans do. The aim of artificial intelligence is to
mimic human intelligence , behaviour and researchers are also trying to develop machines that
can use logics , reasoning and also even be creative like humans. It is like creating an artificial
human. Deep learning and machine learning contribute to this process , just like humans perform
actions based on their past experiences machines perform actions based on the stored data.
Nowadays many of the companies are using artificial intelligence for various purposes some are
using it for labour some for storing and analysing data to predict the future consequences. Most
of the companies use it for repetitive jobs and manual jobs so that it can reduce the human effort.
Some companies are also using this for marketing by analysing the core customer need and
providing the companies the data of the products they should keep in their stock or to tell them
which product is more demanded.

This paper demystify the facts abut how artificial intelligence adds advantage to contemporary
marketing practices and also tells what are the limitations of this technology.
 Introduction of Artificial Intelligence

Artificial Intelligence is the combination of human’s intellect , behaviour , emotions , with

computer or technology . Artificial Intelligence (AI) is the evolution of technology and will have
a boom in the near future just like Information Technology (IT) had in the past . Few years ago
there were hardly few people who knew about computers and working of it and now everything
has changed completely and whatever you want is just a click away from you , we can search for
anything we want on the internet , it now helps us to connect with our friends , family with the
help of facebook , IMO , etc. Artificial Intelligence will have a greater impact because
automation is the future of the world . In other words Artificial Intelligence are the machines or
robots that can think like humans , humans have the privilege to think unlike other organisms in
the world AI can create huge number of job opportunities and can be a reason for losing jobs or
unemployment . Repetitive jobs like factory labour , driver will be replaced by machines . In
America driverless cars have already started , Amazon has also started delivering through drones
resulting loss of delivery jobs . So all types of mass works will be replaced by AI robots . Jobs to
update these machines or to instruct them will be available. A person should be aware of this
technology and should know how to make use of it , for example nurse in a clinic can take the
help of Artificial Intelligence to tell the disease of a person . AI or machine will tell the disease
by analysing symptoms and compare it with all the historical data to give the results . So the
nurses who know how to use Artificial Intelligence will have the upper edge from the nurses who
how to take care of their patients only.

Application of Artificial Intelligence are chatbots , self driving cars , Ai eye doctor , AI dream
machine , AI music composer. The best example of Artificial intelligence is google maps , you
must have seen when there is traffic or congestion ahead of you you will get to know while you
travel with the help of red lines that are shown on the path , this is because google map can
detect the number of persons or vehicles that are in a particular position for a long time . One
more example of google in artificial intelligence is google assistant where you can ask anything
to google about daily current affairs or anything which you would ask your friend .
 Literature review

History of AI
When anyone says the word marketing we think of a seller selling products to the customer from
his shop by attracting him by the features of the product. Now this trend has changed because
most of the customers buy products online that’s when artificial intelligence come into play.
Most of the sellers have started selling their products online either by creating their own websites
or by collaborating with online websites. When customers buy product online they pay through
card and the details of the product bought is stored in the data of that website and when buyer
again goes for shopping they recommend the related products which makes the purchase
decision easier for customers.
Companies are trying to streamline the process of marketing by targeting the specific customers
which is also called as segmented marketing. AI makes easier for companies to analyse
consumer’s needs and provide them that , it also helps to predict what will customer’s need in
future so that companies can start manufacturing that item and keep it in their stock. There are a
lot of changes made by artificial intelligence in the field of marketing like introduction of
chatbots where customer can share their complaints by chatting with the robots , this saves a lot
of time of customers as well as employees of the company so that they can solve the bigger
problems to satisfy customer’s demand. It is easy to start anything but to maintain it becomes a
difficult task and that is the limitation of AI like lack of cost , lack of maintenance , lack of
creativity and the most important thing is machine don’t have emotions so the cannot understand
what customer is going through and what is his real problem , today also when it comes to
operation by robots people hesitate and hence there is lack of trust.

Artificial intelligence and machine learning

Some people often say think that machine learning and artificial intelligence is one of the same
thing and are used interchangeably. Machine learning is a subset of Artificial Intelligence which
enables the machine to perform any task or execute any action on the basis of past experiences
stored in the machine in the form of data like humans do things based on their past experiences
or improve what they do by learning from their experiences. Someone has rightly said mistakes
in the past is your best teacher, so like humans machine can also do things based on the data
stored in it and not by programming it for specialized task or action. Nowadays many
multinational companies are using machine learning to provide their customers a delightful
experience for example if I buy anything from flipkart today it will give thousand other options
to choose from or list of other products which I can like or they will suggest complementary
products. A lot of webseries as well like Netflix and amazon prime do data mining and based on
that information they provide you series or movies which you would like to watch by
understanding your choice.
 What is the difference between Deep learning and Machine learning?
Deep learning is more efficient than machine learning where in machine learning humans have to
repair the program or fix anything if machine does not respond how it is supposed to be and on
the other hand in case of deep learning machine does all that by itself. Example of deep learning
is driverless cars where machine already knows what to do it does not need any guidance from
humans.
Let’s understand by an example about the suppose there are street lights which are programmed
in such a way that if someone says night they have to light up now machine learning model will
identify the word night from sentences said by anyone and put it on but if someone say that it is
too dark or it is time for street lights to be on they will not get on because they have not analyzed
night till now but in case of a deep learning model even if someone does not say night it would
be able to find out from its own method of computing.

Objective
 The objective of this paper is to tell what advantages does artificial intelligence adds to
contemporary marketing practices and what are its limitations.
 This shows how it will replace humans in the upcoming future and how it will create
unemployment.
 To understand how a machine can think and react like humans.
 Applications of AI like gaming , natural language processing , speech recognition , vision
systems etc.
 To understand the change in marketing practices after implementing artificial
intelligence.

Research methodology
This paper is completely based on the researches that are done previously and some new facts
about artificial intelligence. Information on this paper is collected from journals , websites and
research papers.
 History of Artificial intelligence
The birth of the term Artificial intelligence was given by John McCarthy in the academic
conference which is known as Darmouth conference in 1956. The conference was to be a “two
month , ten man study of artificial intelligence on the basis of the conjencture that every aspect
of learning or any other feature of intelligence can in principle be so precisely described that a
machine can be made to stimulate it”. But the journey of believing that machines can really
think started much before that. Alan turing who is also as a scientist played a huge role by
prescribing a test called as turing test or which is also known as imitation game.
Turing test is the test where a human judge takes responses of a human and a machine and has to
identify which one is a machine and which one is a human. If he fails to do that this means
machine has passed the test. Nowadays there is a Lobener Prize – an annual competition where
chatbots are judged for human like responses. the English philosopher Thomas Hobbes first
expressed the opinion that thinking is the manipulation of symbols. Gallileo had said that “ all
reality is mathematical in sense that everything is made up of particles , and our sensing of smell
or taste was how we reached to those particles”. Hobbes extended this notion to say that thought
too was made up of (expressed in) particles which the thinker manipulated. However he had no
answer to the question of how can a symbol mean anything , because he had given up on the idea
of thoughts being in the image of the reality. That is a question we can still say is unresolved.
Thomas hobbes is also known as the grandfather of artificial intelligence. In the tournament of
chess IBM’s AI chess computer ‘Deep Blue’ defeats incumbent chess world champion Garry
Kasparov this was regarded as a historic success.
 In 2011 ‘Watson’ a computer program won a US
television quiz show against the human players this
proved that Watson can understand natural language and
can answer difficult questions as well.
 In 2014 microsoft has launched cortana , their version of
virtual assistant similar to Siri on iOS. In 2014 amazon
has mas made amazon alexa a home assistant who
evolved into intelligent speakers who work as private
assistants.
 In 2016 Hanson robotics has created a humanoid robot
named Sophia. She is also known as the first ‘robot
citizen’ Sophia is different from other human robots
with its varying features like image recognition , facial
expressions and make communications through AI.
 In 2016 google also released google home which act as a
personal assistant for reminding tasks , fix appointments
, and search anything through voice.
 Role of Artificial intelligence in marketing practices
Artificial intelligence plays a huge role in determining the change in consumer’s taste for
example many international companies nowadays are collecting data of the people who buy their
product from malls through credit card or debit card to determine how many people of how
much age are buying their product so they can plan their advertising strategies according to that
suppose if their product is bought by a person whose age is 25 then their target will be to attract
customers of the ranging from 20 to 30 . a lot of online stores like amazon and flipkart are using
this technology to recommend products to customers for example suppose you bought a book
from amazon as soon as you finish shopping you will see the related products below it. It is all to
improve the experience of customers by impressing them and making them believe that they care
about their choice and remembers it.
Another thing which uses AI is product pricing , which means with the help of machine learning
we extract the information from the past data to observe how mush customers are willing to pay
for a particular product or what is the worth of a company’s product in front of customer’s eye.
They can also observe if they are charging more or low for a particular product. Companies can
predict the future trends based on present data like with the help of AI they can predict the
likeability of a product among customers by counting the number of purchase for the same
product. One more prediction based application of AI s sales forecasting , this application help
the companies to plan their sales based on the past data for example product demand so that they
can plan their production and manufacturing accordingly.
Artificial intelligence is playing huge role in contemporary marketing practices because internet
and other related technologies have changed the way to connect with people. It is not how it is
used to be , a buyer will come to your shop and you will impress him with your people’s skills it
has changed now , in today’s world anyone can sell their product from any part of the world to
anyone. With development in technologies new marketing strategies are being used by various
companies like content marketing , mobile marketing , integrated digital marketing , continuous
marketing , personalized marketing , visual marketing. Thus companies should adopt AI and
machine learning by developing their employees with these skills as they are very essential for
the future and it understand the customers better than humans. They can generate different types
of advertisements for different people who are of different age , culture , region which is also
called personalized advertising. Nearly 80% of business will communicate to customers through
chatbots by 2020.
 How artificial intelligence is reshaping the marketing practices

"In the era of big data, we have the need to mine all of that information, and humans can no
longer do it alone," says Mark Simpson. Humans can interact with customers and try to solve
their problems related to products , delivery and bad experiences but artificial intelligence can do
the same things with better efficiency and at larger scale. It helps marketer to create a separate
marketing strategies and personalized advertisements for a particular customers rather than
providing one offer to everyone.

Every consumer has different taste towards products and he can be attracted to the packaging in
a different way , so AI helps marketer to identify likes and dislikes of every customer and based
on researches from social medias and websites on which customers usually spend their time they
can penetrate them with advertisements that interests them and make them feel that this product
is made for them.

One of the great revolution done by AI in the field of marketing is chatbots. First we had to do a
lot of things whenever we face problems related to product like late delivery , defect in the
product , different product than what we asked for we used to do a lot of things c like calling
customer service 200 times and e mailing them problems occurring but nowadays because of
chatbots we can talk to a company’s representative with the help of the option of chatting , it
solves your problems instantly and is very personalized and chances of conflict will be lesser
because it is free of emotions.

Today online customers are increasing day by day and no one wants to go to store to buy
anything. There is a tough competition among the online websites hence it becomes necessary to
segment the market according to age , gender , preferences and creating a relevant message for
them , with the help of AI we can re acquire the customers by analyzing their problems and
detecting them by their less purchases from a particular website by assisting and recommending
them with the help of AI.
 Role of Artificial intelligence in advertising

When we talk about marketing practices a lot of things come to our mind which are the way to
connect from people , one of the way is advertising. By an estimate 85% of businesses will use
AI by 2020. You must have seen whenever you watch any video on youtube related to review of
some products you will see that when you visit some other website advertisements related to that
product will keep penetrating you in the form of pop ups , this is because of artificial
intelligence. Most organizations are now mindful of and utilizing live chatbots , or AI
frameworks where we can message our problems and chat with a person or machine that is on
the other side , we will never come to know wheather that is a or a human and that is what we
call as artificial intelligence. This makes our site one of a kind, profitable and stands separated
from others.

Artificial intelligence ensures that relevant and correct message is being delivered to the people
who are interested and not to target the whole market with one offer. It can assist consumers with
their problems and that is why many companies are nowadays replacing their customer service
from call helpline number to apps of the company where you can chat with the employee of the
company. They have the ability to follow their clients through their purchase patterns and make
personalized advertisements according to that. AI enable marketers to connect with their target
customer in an efficient way. People and companies who are adopting this technology are the
one who will get a competitive advantage because this is the next milestone of industrial
revolution. It helps marketers to make one on one communication with customers and understand
their core needs and wants for example a woman buying a lipstick buys more than a lip colour.
Marketers can track their customer’s location and based on that they can recommend people
different products with the help of penetrating advertisements in social media.

One more feature of AI is prediction , in addition to making companies more competent ,

predictive intelligence helps to understand an individual user and prepares personalized content
to satisfy their interests and needs. With the help of AI marketers can fully understand the
conduct of customers and sustain a personalized connection that was hard previously. Like
predictive customer service , customer received emails can be evaluated based on prior
conservations and behaviours. To personalize advertisements and create messages for targeted
marketing we need data of thousands or millions of people. Then we have to evaluate the
information and make use of it for creating personalized advertisements. Humans cannot do this
much of manual work because of lack of resources and mental capability and that is why the
need AI systems.
 Limitations of Artificial Intelligence in marketing practices

One of the major limitations of adopting artificial intelligence in India is lack of education
and skills that is very necessary for the companies. That is why there is a huge demand of
skilled employees with experience to operate artificial intelligence.

 Second limitation is the lack of cost, because of huge population of India labour is very
cheap than to install a machine that is the reason why companies don’t want to shift to
machines and automate the whole process as it is an expensive affair.

 Third one is lack of maintenance, when we talk about machines, we need to think about
their maintenance so it does not stop suddenly which can cause major accidents and to
maintain them manual labour is also required and they are also needed to supervise them.

 Whenever you call to a customer service you must have noticed after dialling 1991 they
ask you a lot of things to do like press 1 , 2 , 3 and after that also you have to talk to a
robot , some people find this frustrating that is why we need to use chatbots very
carefully and it should also be supported by humans.

 Machines cannot be so creative as humans , they can recommend colours or can give
preferences based on the data stored. For example in marketing when we have to create
offers for attracting customers machine cannot say which thing has to highlighted and
how it should be presented.

 It will create a lot of unemployment in a lot of sectors. As I have mentioned earlier

amazon.com has already started delivering its products through drone which will replace
the jobs of delivery boys. All kinds of repetition jobs will be replaced by machines that
does not require a lot of skills. Although new jobs will be created for example
supervising the machines or upgrading them to do a task.