IAA Trendtalk: "From Mad Man to Math Man".

Werbewoche.ch: Prof. Dr. Claudia BünteYou conducted a study among marketing experts on AI, which you presented at the launch of of the IAA Trend Brunch 2023 "AI: Key Technology of the Century". have presented in extracts. What are the most important findings?

Claudia Bünte: We have been conducting this study for five years and can now look at a period of time. It shows that the use of artificial intelligence has made a big leap. Before, it was stagnant, but from 2021 to 2023, it increased sharply.

Can you give us a specific number?

In the DACH region, there is a significant 53 percent increase in the use of AI in marketing and advertising.

You said ChatGPT was first Googled in November 2022....

Looking back, one often wonders how long ChatGPT has existed, and it feels like it has always been there. In fact, it has been around for a few years, but its application for regular users started only a few months ago. We tend to think that it has been available for a long time, even though it only came up ten months ago. Before that, none of us knew about it.

What makes AI different from humans?

There are still differences, which is good. It is often said that AI cannot be creative, which is not true. It depends on the definition of creativity. The main difference is that we can do many things at the same time. If you are standing here in front of me, you can read questions, listen, hold the camera, and be in a room where a lot is happening, including acoustically. Artificial intelligence can't do that yet. It can either interact, speak or write, but not all at the same time. Eventually it will be able to do that, but for now we are ahead of it.

You also addressed the competition among world regions for AI supremacy on Friday?

According to experts, China is about four to five years ahead of Europe in terms of the development of AI in business. That is a significant head start. Five years ago ChatGPT didn't exist, now we are using it. Five years in this industry is like decades. China will be the leader.

You also talked about how AI would change business models. 

In China, there are mobile doctor's offices with attached pharmacies. They look like telephone booths with vending machines next to them that look like beverage dispensers. These "phone booths" are medical practices with virtual doctors. After interacting with a doctor, you receive a prescription that you can pick up from a vending machine right next to the "phone booths." This enables fast medical care in just a few minutes.

Who developed this concept?

An insurance company, to be more precise, the world's largest insurance company called Ping An Insurance. They use this system to collect data from people and create better insurance quotes.

In China, AI is also changing the customer journey. Can you explain that?

In China, there are so-called platform ecosystems. For example, WeChat, an app that users use for everything. In this ecosystem, you can get recommendations, find products, order and buy, all in one app. In contrast, in Europe, we often have to open different apps to perform these steps. In China, the entire buying process is seamless, which means consumers are less likely to abandon their consumer journeys.

You've also talked about marketing in real time. What does that mean?

This is the so-called New Marketing that we see in China. In marketing and advertising, everything is now done simultaneously, no longer sequentially. In China, strategy, brand strategy, products, prices, advertising, sales and performance reviews are all carried out in parallel on a daily basis. This is marketing in real time.

There are concerns in the financial world. You saw more worried faces in Vienna than here among marketing experts in Switzerland. Why?

This fits in with a recent study by McKinsey. It asked which industries worldwide are the most advanced in their use of AI. The marketing and sales industry is right out in front. Why? Because we have the data in marketing and are willing to try new things. In finance, there are more concerns, especially about job losses.

Here at the Sorell Hotel Zürichberg, you have projected the line "From Mad Man to Math Man" on the wall. What do you mean by that?

This refers to the idea that marketers need additional skills. We used to do everything ourselves, from images to copy. Now, much can be automated through AI. However, managing these AI capabilities requires a different set of skills. Someone has to set goals, formulate the targets, check that the right thing is emerging for the brand, etc. That's a different set of skills than execution.

What's the best way for "Mad Man" to stay on track so he - or she - doesn't miss the boat on a Math Man career?

That depends on the attitude, first and foremost. You shouldn't think that after learning three tools you are sufficiently equipped for four years. That won't work. It's better to resolve to set aside two hours regularly, for example every Thursday evening, to explore new technologies. This helps to stay up to date. There are also books on the subject.

You have written books on the subject yourself.

Yes, may I advertise my own book?

Of course! After all, it's about the future of the industry we report on.

The book is called "This is how digital marketing works" and is aimed at practitioners. It explains individual tools and how to use them for different purposes, such as branding, naming, copywriting, or image development with DALL-E. It provides a comprehensive overview and is written by several co-authors, including Peter Petermann from the media planning department. It's worth taking a look.

The IAA Trendtalk took place on Friday at the Sorell Hotel Zürichberg. Prior to this, Matthias Kiess was elected as the new President of the IAA Swiss Chapter at the 60th General Assembly of the International Advertising Association. Click here for the article on Werbewoche.ch.