043: How AI Is Shaping and Shaking the Digital Marketing Scene

Hello, you lovely Creatives!

Welcome to Volume 4️⃣3️⃣ of Creative Cuts 🔪 - your weekly dose of creative strategy from your friends at Creative OS.

And today on the cutting board…

We’re diving into the unknown… but soon to be. 

Very soon, in fact. 

Because nowadays, you’re seeing it everywhere.

All of LinkedIn is obsessed with it…

Every news station thinks it might be the end of human existence…

And even your parents (who can’t operate an IPhone) are asking you questions about it.

Of course - we’re talking about AI. 

And more specifically, how it’s reshaping the world of digital marketing.

Because these robots are getting smarter, more efficient, and more adaptable by the day. 

And at this pace, it isn’t a matter of if…

But when.

The days of one-size-fits-all strategies…

Monotonous daily tasks… 

And even the existence of some entry level positions…

Over. 

That said…

Today we’re going to get into the why, the how, and the actionable strategies to ride this AI wave to the top.

We’ll go over:

~ The trends and tools redefining our industry

~ Where brands are winning big with AI (and where they’re stumbling)

~ Tactical ways to harness AI to crush your 2025 goals

Because like I said, it’s already here. 

And if there’s anything I know about the digital marketing space… 

If you don’t adapt - you die. 

Let’s roll.

Some quick statistics…

From predictive analytics to generative AI tools, Artificial Intelligence is no longer a futuristic concept. 

It's a marketing powerhouse delivering substantial results for even the largest of companies.

Here’s are some gnarly statistics for you to chew on:

~ Brands using AI in their marketing strategies saw an average 9% lift in conversion rates in 2024 compared to those who didn’t.

~ TikTok’s discovery features have turned impulse purchases into an art form with AI driven algorithms analyzing user behavior with pinpoint precision.

~ AI-powered chatbots handled over 50% of customer service inquiries during BFCM 2024

~ Websites leveraging AI for personalized user experiences reported a 15% drop in bounce rates.

~ Email campaigns using AI-driven dynamic content clocked in with a 20% higher open rate.

And that’s not all of it.

Not even close.

And all that in mind…

The impact in performance AI has had on digital marketing campaigns isn’t just a conversation to be had anymore…

It’s grounded in REAL evidence now. 

Where AI Hits (and Misses)

Now…

Before you get too amped up and start throwing your entire budget at AI tools…

Let’s talk about where brands are excelling…

AND where they’re missing the mark.

The Wins:

1/ Hyper-Personalization

Retailers who deployed AI-driven recommendations crushed it, with tailored suggestions boosting average order value (AOV) by 18%. 

Customers now expect this level of personalization—it’s table stakes.

2/ Smarter Ad Targeting

Generative AI tools have taken ad copy to new heights.

Platforms like Meta and Google Ads now enable split-second creative iteration, allowing marketers to test dozens of variants on the fly.

3/ Predictive Analytics

AI’s ability to forecast trends and customer behaviors isn’t just cool; it’s essential. Brands using predictive tools saw a 25% increase in ROI from digital campaigns.

The Misses

While AI is a game-changer, it’s far from perfect. 

Even the most advanced tools come with pitfalls that can derail your marketing efforts if you’re not careful. 

Here’s what brands are still getting wrong:

1/ Over-Automation

There’s a fine line between creating a seamless customer journey and stripping it of humanity altogether.

When automation runs wild - whether it’s through robotic customer service chatbots or overly generic email campaigns - it’s obvious.

Customers crave connection, not canned responses.

And nowadays especially, they can sniff them out from a mile away.

Picture a customer who reaches out with a specific question about sizing for a holiday gift. 

Instead of getting a thoughtful answer, they’re met with a generic bot reply directing them to a FAQs page. 

Frustrating, right? 

That’s where over-automation costs you trust, loyalty, and conversions.

So…

Make sure to integrate human touchpoints into your AI systems. 

Think hybrid chat support - AI for quick resolutions, humans for nuanced queries. 

Use automation to handle the grunt work but leave room for real interaction where it matters.

2/ Ignoring Context

AI might be brilliant at crunching data, but let’s face it - it still struggles with nuance.

Whether it’s cultural references, subtle humor, or sensitive topics, AI lacks the instinct to read the room.

And when context is ignored, mistakes happen.

Pepsi’s chatbot campaign that spectacularly failed during BFCM is a BIG cautionary tale. 

It had a tiny hiccup where it misunderstood the tone and sentiment of the holiday season, and it resulted in a campaign that felt out of touch and even offensive to some audiences.

That said, always review AI-generated content through a human lens before it goes live.

Involve your creative team to assess whether the messaging aligns with your brand voice and resonates with your target audience.

3/ Dependency on Tools

It’s tempting to let AI do all the heavy lifting, but over-reliance on these tools comes with a big risk:

Losing your creative edge.

Whether it’s your copywriters…

Designers…

Or media buyers…

AI can generate ideas, but it can’t replicate the human intuition required for emotional nuances like storytelling or humor…

As well as the ability to read markets and adapt to trends/the most effective tactics available. 

That said…

Campaigns that rely TOO heavily on AI often feel flat. 

Technically sound, but lacking the spark that makes them memorable.

Compare two campaigns:

• Brand A sticks to AI-generated ad copy and design templates. It’s efficient but uninspired.
  

• Brand B uses AI to analyze data and identify trends but relies on its team to craft emotionally compelling ads. 

I’ll let you guess which one resonates more (and performs better).

Think of AI as your assistant, not the boss.

Brands that use it to streamline repetitive tasks, identify patterns, and provide data-driven insights seem to have the most success…

Leaving things like the story, the vibe, and the why for the creative instincts of human team members.

4/ The “Set It and Forget It” Mentality

One of AI’s greatest strengths—automation—can also be a trap. 

Some brands treat AI systems as fire-and-forget tools, assuming they’ll keep running smoothly forever. 

(Spoiler: they don’t)

Just like your dusty old 1960’s antique Mustang collecting dust in the back of the garage…

AI requires regular fine-tuning. 

Algorithms can drift…

Data sets can go stale…

And consumer behavior evolves.

For example:

A chatbot that crushed it in Q1 might be underperforming by Q4 if it’s not updated to reflect changing customer needs.

5/ Data Privacy Missteps

AI thrives on data, but mishandling it can lead to trust issues - or worse, legal headaches.

Consumers are becoming increasingly aware of how their information is being used. 

AI campaigns that rely on intrusive data collection or fail to communicate transparency can backfire.

It’s extremely important that you’re transparent about how you’re using customer data. 

Implement robust data protection measures and give users control over their privacy preferences. 

The Bottom Line

AI is a powerful tool, but it’s not a one-size-fits-all solution (right now at least)

Brands that get it right balance automation with humanity, strategy with creativity, and efficiency with authenticity.

It’s not just about being cutting-edge; it’s about knowing when to let the machines work—and when to let your people shine.

Your AI Playbook for 2025

So, how can you make AI your secret weapon in the new year -

Without falling into the pitfalls?

Here’s your blueprint:

1/ Personalization is Non-Negotiable

Invest in platforms that enable real-time segmentation and dynamic content.

Think tailored email flows, product recommendations, and even AI-generated post-purchase surveys to optimize retention.

2/ Optimize for Mobile

AI-driven insights have confirmed what we’ve long suspected:

Mobile shoppers are the majority.

With over 55% of sales occurring on mobile devices during BFCM 2024, responsive design and lightning-fast load times are must-haves.

3/ Go All-In on Social Commerce Integrate

AI features like augmented reality try-ons and shoppable live streams into your social strategy. 

Platforms like Instagram and TikTok aren’t just cute apps for teenagers anymore - 

They’re full-blown sales channels.

4/ Experiment with AI Ad Creative 

Embrace quirky, TikTok-style hooks and test “ugly ads” that stand out in crowded feeds. 

AI tools can analyze real-time performance and refine your strategy at scale.

5/ Focus on Human-AI Collaboration

 Use AI to do the heavy lifting—data crunching, testing, and automating—while your team brings the creativity and storytelling. 

The brands that strike this balance will, and already are, dominating.

All in all…

The advertising landscape is shifting, and AI is a BIG part of the equation.

In fact, in a few years it might become the entire equation. 

Who knows. 

For now, all you can ask yourself is:

How can AI help you do more with less?

And how can it free you up to focus on what matters most?

The answers to these questions will define your success in this new era.

See you at the forefront,

Chase

That’s all! If you’re looking to find inspiration or get the best ad templates out there, come hang out with us at Creative OS and tell your friends!