Artificial Intelligence (AI), a game-changing force in the tech sector, has completely revolutionized the industry. The innovation will optimally address businesses in gaining a competitive edge. Other than that, the technological advances will also help build deeper connections with their target customers, and understanding “How Artificial Intelligence Works” has become essential.
From predicting customer behavior to automating personalized experiences, AI has emerged as a powerful supporter in empowering marketing efforts like never before.
In this article, we embark on a captivating journey into the intricate workings of AI, exploring its unparalleled potential in revolutionizing marketing strategies and fueling business success.
The role of artificial intelligence in marketing
As Artificial Intelligence (AI) has gained popularity recently, technological advancements have given AI a more significant role in marketing.
AI technologies, including natural language processing (NLP), machine learning (ML), sentiment analysis, and others, assist businesses in decision-making, enabling businesses to outperform competitors and adapt to the ever-changing market conditions.
AI marketing integrates AI technologies with customer and brand experience data to offer accurate insights into customer journeys and market trends.
It is projected that AI-driven marketing will contribute to 45% of the total global economy by 2030.
Given the promising outlook for AI-driven marketing, businesses should prepare for the increasing adoption of AI and take the necessary steps to adapt to rapid technological advancements. It will ensure business stay relevant in the ever-changing technological landscape.
How AI empowers digital marketing
Digital marketing is currently the best option to market your products at a lesser cost. With the increased digitization in the last decade, digital marketing has become important for all businesses to ensure their growth.
Driven by the advancement of AI technology, digital marketers are embracing AI to automate and enhance existing marketing procedures, leveraging its technological capabilities.
The below points highlight how AI can empower digital marketing in various ways.
1. Drive effective advertisements
AI can enhance marketing efforts by tailoring ads to people’s preferences and interests on social media. For e-commerce, AI can also personalize audience experiences by showcasing content based on their lifestyle and past purchases.
2. Enhance search engine
AI can advance search engine algorithms by efficiently guiding customers to their destinations by providing essential information in a shorter time frame.
3. Chatbox optimization
Chatbots provide valuable assistance in brand promotion and offer relevant insights into the audience.
This data helps brands market specific products, recognize areas for enhancement, and refine targeting strategies for their intended audience.
4. Target appropriate audience
AI enables businesses to delve deep into data, extracting valuable insights from diverse sources.
It empowers digital marketers to effectively reach their target audience through segmentation based on various preferences, such as age, lifestyle, choices, income, profession, and more.
5. Develop a future strategy
AI can assist in discovering potential customers who share similarities with your current audience, enabling your business to develop future strategies for your target market.
6. Improve cyber security
AI monitors and detects any unusual behavior in the algorithm that deviates from the regular pattern, notifying digital marketers about potential threats.
7. Enable smarter sentiment
AI technologies like deep learning can be used to understand language nuances better
8. Forecast sales
AI can analyze inbound communications and use past behaviors to take appropriate actions.
Given the significant role of AI in digital marketing, it is important to understand that human creativity is still indispensable, especially related to the digital marketing process.
Read more: 15 strategies for global business expansion in Indonesia
How can artificial intelligence increase productivity?
As automation driven by AI technology becomes more prevalent in various industries, there are concerns about the future role of human creativity, including in marketing functions.
AI is increasingly utilized for content creation, with tools like ChatGPT able to generate written content quickly across different genres and with specific instructions, such as for SEO purposes.
Other AI-driven platforms also offer voice-over generation, image creation, and various other services, providing business owners with time and cost savings.
Despite the rising popularity of AI, digital marketers still need to nurture their creative thinking and can consider integrating AI into their processes to maintain originality.
Since AI cannot produce entirely new content, digital marketers must provide the data to compete effectively with AI-generated data.
Machine-generated ideas may lack the human touch needed for any idea activation. Therefore, engaging in market research and interviewing prospective customers is still essential.
However, if properly used, AI can help reduce bias, including information bias for marketing content. Digital marketers should also be cautious to avoid potentially incorrect information developed by AI technologies.
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Conclusion
With the growing significance of AI in marketing, businesses should maximize this chance to reap optimum benefits. In order to gain a competitive advantage and make effective use of artificial intelligence, businesses should also consider the legal implications of this technology.
In Indonesia, regulations stipulate that paid AI services must have an electronic system operator license (PSE) registration, governed by Government Regulation No. 71/2019 and Ministry of Communication and Informatics Regulation No. 5/2020, with further amendments in 2021.
Companies using AI services in their daily operations should ensure proper registration according to these requirements. InCorp Indonesia offers services that assist with legal compliance and business licensing, streamlining business processes.
Pandu Biasramadhan
Senior Consulting Manager at InCorp Indonesia
An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.
Frequently Asked Questions
- Import facilities
Investors in Indonesia, particularly in manufacturing, may benefit from import tax exemptions for capital goods and raw materials through the Master List Facility. The imported goods must meet specific criteria, such as not being produced locally or not meeting industry demand despite local production. - Tax holiday
The government offers CIT reductions of 50% or 100% for 5–20 years for listed pioneer industries, based on investment value. After this period, a CIT reduction of 25% or 50% applies for two fiscal years. Non-listed sectors can also apply by meeting criteria demonstrating pioneer industry status. - Tax allowance
For companies in certain designated areas or regions, the government may provide the following tax concessions:
Net income reduction up to 30% of the amount invested, prorated at 5% annually for six years, on condition that the assets invested are retained for the same duration.
Accelerated depreciation and/or amortisation deductions
An extension of tax losses carried forward for a maximum of ten years
A 10% (or lower if treaty relief is available) withholding tax rate on dividends paid to non-residents
The applicant eligible has to meet high-level-criteria for the above tax facilities:
High investment value or for export purposes
High manpower absorption
High level of local content - Investment allowance
The government offers a reduction in net income of up to 60% of the investment, distributed at 5% annually over six years of commercial production, contingent upon the retention of invested assets for the same duration. To qualify, applicants must meet business line eligibility criteria and employ a minimum of 300 Indonesian workers in the project. - Super deduction
This facility could be granted to certain businesses, such as:
60% reduction in net income of the amount of tangible fixed assets invested for labor-intensive industries, distributed throughout a certain time frame.
Up to 200% reduction in the gross income of the amount spent for human resources development in certain competency activities.
Up to 300% reduction in gross income of the amount spent for certain R&D activities in Indonesia.
In a PMA Company in Indonesia, shareholders typically have limited liability, meaning they’re not personally liable for agreements or losses beyond their shareholding, except in certain circumstances. Liability may extend if the company isn’t properly established or if shareholders exploit the company in bad faith, engage in unlawful acts, or deplete company assets to the detriment of creditors.
A newly established PMA company in Indonesia is typically provided with import facilities, tax holidays, tax allowances, or investment allowances.
Pioneer industries are industries that have a wide range of connections, provide additional value and high externalities, introduce new technologies, and have strategic value for the national economy.
To provide you with accurate pricing information for our finance, accounting, and tax services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the services may vary accordingly. For pricing details, please talk to our experts.
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