AI technology has already shaken up marketing and sales, but generative AI is ready to redefine the game for B2B and B2C players, transforming customer experience, productivity, and growth.

Artificial Intelligence (AI) and Machine Learning (ML) are relentlessly pushing the envelope in marketing and sales. Now, the advent of generative AI (gen AI) is taking things to the next level. Open-source platforms are now at the sales frontlines, spurred by increased investment in gen AI innovations. In today’s fast-paced, digital-first world, these technologies aren’t just advantageous—they’re indispensable.

This evolution will undoubtedly reshape your operations and customer interactions. If it hasn’t already, you’re about to feel the impact. Forward-thinking C-suite leaders are navigating this new terrain, and we’re here to spotlight the marketing and sales opportunities—and risks—of this dynamic field, offering actionable strategies for moving forward.

Our research indicates that up to 20% of current sales-team roles could be automated.

How AI is Transforming Marketing and Sales

AI is set to disrupt every sector of marketing and sales, driven by shifts in consumer sentiment and rapid technological advancements.

Omnichannel: The New Standard

Today’s customers demand everything, everywhere, all the time. They still want a mix of traditional, remote, and self-service channels, but online ordering and reordering are gaining ground. Winning companies—those growing market share by at least 10% annually —are leveraging advanced sales tech, building hybrid teams, tailoring strategies for various marketplaces, excelling in e-commerce, and delivering hyper-personalization based on individual decision-makers' needs and behaviors.

Digitization and Automation on the Rise

AI technology is advancing rapidly, becoming easier and cheaper to implement while offering unprecedented complexity and speed. Our research suggests that a fifth of current sales functions could be automated. Generative AI is opening new frontiers, with venture capital investment in AI soaring 13-fold over the past decade. This surge has unleashed a wealth of “usable” data and accessible technology, with data for foundation-model training increasing a millionfold since 2012.

Generative AI: A Game-Changer for Marketing and Sales

Generative AI holds transformative potential in three key areas: customer experience (CX), growth, and productivity.

For CX, hyper-personalized content and offerings can be tailored to individual customer behavior and purchase history. Growth can be turbocharged by leveraging AI for top-line performance, providing sales teams with the analytics and insights needed to capture demand. AI can also boost sales effectiveness by automating mundane tasks, freeing up time for customer interactions and reducing service costs. Personalization is paramount, with AI enabling granular consumer insights for targeted marketing and sales.

Bringing Generative AI to the Customer Journey

Generative AI offers numerous use cases across the customer journey:

• Lead Generation: Gen AI outperforms traditional AI in lead identification and targeting, using advanced algorithms to segment and target audiences efficiently.
• Marketing Optimization: Gen AI enhances marketing strategies through A/B testing and predictive analytics, ensuring maximum ROI.

• Sales Engagement: Gen AI supports the entire sales process with personalized content, 24/7 virtual assistance, and real-time negotiation guidance.

• Post-Sale: Gen AI offers personalized onboarding, continuous churn modeling, and dynamic customer-journey mapping.

This revolutionary approach is transforming marketing and sales, driving effectiveness and engagement from the start.

‍Commercial Leaders: Optimistic and Benefiting

‍Commercial leaders are optimistic about gen AI’s potential, especially in lead identification, marketing optimization, and personalized outreach. Our research shows 90% of commercial leaders expect to use gen AI solutions frequently over the next two years. Successful companies are prioritizing advanced sales tech, building hybrid teams, and enabling hyper-personalization. They invest heavily in AI, employ data scientists, and outline clear gen AI strategies. These trailblazers are already reaping the benefits, with AI investments driving revenue and sales ROI uplifts.

‍Mitigating Risks in Generative AI

‍While the AI business case is compelling, the rapid pace of technological change brings risks. Leaders must address issues like IP infringement, data privacy, and security, requiring thoughtful mitigation strategies and governance. Human oversight and new capabilities are essential to capitalize on opportunities. Strategically investing in AI commercial excellence for the long term is crucial. Identify table stakes and differentiators, prioritize based on impact and feasibility, and pursue strategic partnerships. AI is evolving at breakneck speed, and its future role in marketing and sales is undeniable. Leaders are leveraging gen AI to maximize operations, personalization, and sales excellence. How will your industry respond?

‍Source: https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/ai-powered-marketing-and-sales-reach-new-heights-with-generative-ai