Brand Management and Artificial Intelligence - A World of Man Plus Machine - A qualitative study exploring how Artificial Intelligence can contribute to Brand Management in the B2C sector

Abstract

The fast transforming world of technology has made the environment for Brand Management increasingly complex. To survive, brands need to raise the stakes, develop sharper strategies, provide holistic experiences, and gain a better understanding of their customers. Artificial Intelligence (AI) is a field within technology that exhibits and imitates human intelligence and is a tool that can assist Brand Management with their challenges. Yet, there is a lack of relevant research regarding the combination of the two fields. Furthermore, as with most disruptive technologies, there are also risks associated. Thereby, there is a relevance for our article which uses a combination of a literature review and an interview study to research how AI can contribute to Brand Management and what the associated risks are. We provide a model demonstrating how seven AI applications can contribute to different components within Brand Management, functioning as a guideline for brands. The AI applications deemed relevant to implement are Automated Customer Service, Intelligent Advertisements, Recommendation Systems, Customer Segmentation Systems, Conversion Rate Optimization Systems, Propensity Modeling, and Dynamic Pricing. The applications can generate more efficient customer service that enhances the consumers’ perception and relationship with the brand. AI also enables brands to better understand their consumers, providing the ability to optimize communication and consumer experiences. The implementation of AI, however, also implies the risk of losing a consistent Brand Identity and Brand Image, resulting in consumers’ irritation and disliking of the brand. Due to brands collecting personal data about their consumers, brands risk losing trust if ethical considerations are disregarded. Overall, if the AI implementation is conducted in a thorough manner where the focus is to benefit the consumers’, we conclude that AI provides immense potential within Brand Management.