Study reveals CMOs lack understanding of generative AI potential

A new global study by SAS and Coleman Parkes Research reveals that while generative artificial intelligence (GenAI) is being increasingly adopted by marketers, a significant knowledge gap persists among Chief Marketing Officers (CMOs).

The study, titled "Marketers and GenAI: Diving Into the Shallow End," suggests that although 90 percent of organisations plan to invest in GenAI for marketing purposes in 2025, an equal percentage of CMOs admit they do not fully understand the technology or its potential impact on business processes.

This knowledge gap appears to be a major obstacle for organisations seeking to realise the full benefits of GenAI. Jenn Chase, Chief Marketing Officer and Executive Vice President at SAS, commented, "A lack of understanding of GenAI at the CMO and senior management level is holding organisations back."

The study notes that GenAI is already driving personalisation, customer satisfaction, and enhanced data capabilities, underscoring the urgent need for upskilling among marketing executives.

Currently, 75 percent of marketers are utilising GenAI in their daily activities, placing marketing ahead of other business functions, including IT, in terms of adoption. However, these applications are often limited to basic tasks such as copywriting, editing, and content creation. The more sophisticated applications of GenAI, which could offer enhanced organisational efficiencies and a competitive edge, are not yet widely embraced. For instance, only 18 percent of marketers are using the technology to build audiences, 16 percent for customer journey mapping, 14 percent for price optimisation, and 19 percent for audience targeting.

Despite the limited application scope, marketers who have adopted GenAI report strong returns on their investments. They cite improved personalisation (92%), increased customer satisfaction and retention (89%), better processing of large data sets (88%), and greater accuracy in predictive analytics (88%) as key benefits. "It isn't surprising that marketers lead the way in GenAI adoption, as it lends itself to experimentation and creativity – both hallmarks of the marketing profession," said Chase.

"Education and training are critical to overcome this obstacle as GenAI usage not only increases productivity, but it can also improve customer experience and drive business growth."

The study indicates a positive outlook, with marketers expecting to expand their use of GenAI within the next one to two years. They believe this will lead to time and cost savings (63%), improved risk management and compliance (62%), and more efficient processing of large data sets (60%). Additionally, one in five anticipate adopting immersive applications such as adaptive virtual reality, a number that rises to three in ten among those who have fully integrated GenAI.

However, the effective utilisation of GenAI is also hindered by concerns over privacy and trust. Sixty-one percent of marketers cite data security and another 61 percent mention data privacy as their main concerns surrounding GenAI usage. Additionally, while one-third of organisations have a comprehensive governance framework for data management, this figure drops to less than one in ten specifically for GenAI.

Conversely, those who have fully implemented GenAI are more likely to have established governance frameworks, although four in ten do not.

Jonathan Moran, Head of MarTech Solutions Marketing at SAS, emphasised the substantial gap between the potential and current capabilities of GenAI in marketing technology.

"The research highlights that most organisations across industries have significant work to do around GenAI education and enablement as well as data governance and compliance – and performing that work will aid in fostering trust between brand and consumer when it comes to the application of AI for marketing and customer experience pursuits," Moran added.