Nearly 70% of marketing leaders agree agentic AI will be transformative, yet effectiveness remains elusive

The Capgemini Research Institute’s latest CMO Playbook highlighted challenges faced by Chief Marketing Officers (CMOs) regarding the implementation of Artificial Intelligence (AI). The report indicated that while nearly 70% of marketing leaders believe agentic AI could be transformative for their organizations, only 7% reported that AI has effectively enhanced their marketing efforts.

Marketing leaders expressed concerns about their capacity to execute high-value strategic work, with only 15% strongly agreeing that their current setups facilitate such tasks. The research also disclosed that around 70% of companies are now utilizing Generative AI (GenAI) in marketing applications, yet few acknowledge any significant improvement in marketing effectiveness linked to these technologies.

Budget constraints remain a pressing issue, as marketing budgets have dwindled to an average of 5% of company revenue over the past two years. In tandem, the report observed a decline in the influence of CMOs over major business decisions, dropping from 70% to 55%. Effective collaboration between Chief Information Officers (CIOs) and CMOs emerges as crucial to align technology with marketing strategies.

Only 18% of marketing professionals feel confident about personalizing customer interactions through AI. This gap underscores the necessity for more robust partnerships within organizations to leverage both technology and customer insights for better results. Gagandeep Gadri from Capgemini noted, “AI tools offer great potential but often fail to deliver results as budgets, strategy, and technology aren’t fully aligned.”

The report advocates for CMOs to reassess their roles, promoting a blend of marketing with technological expertise. Addressing capability gaps and emphasizing interdepartmental teamwork are highlighted as essential for moving towards effective AI integration into marketing processes.