TLDR:
- A CMO tried Google’s AI tools and stopped using many of them
- The executive found that Google’s AI services sometimes disrupted strategies or performed no better than humans
Before another $100 billion or more is spent on AI chips and data centers, it may be wise to pause and consider how strong demand will be for the end products of this next wave of computing. There are already several AI-powered tools and services being used by paying customers. How are these performing? If they don’t live up to the hype, then this unprecedented investment cycle may result in “pretty woeful” economics.
Lately, there are signs that all is not well when it comes to the real-world performance of artificial intelligence. A chief information officer recently canceled an AI upgrade from Microsoft. AI-powered customer service has been “underwhelming” so far.
The chief marketing officer tried Google’s Performance Max, Smart Bidding, and Gemini. They found that Performance Max disrupted their advertising strategy, Smart Bidding was no better than human bids, and Gemini for automated marketing emails had a 40% failure rate. Despite these challenges, Google continues to add new AI-driven ad features and remains optimistic about the future of AI in advertising.
Google’s Chief Business Officer, Philipp Schindler, expressed excitement about the AI era in the ad industry and highlighted the company’s efforts to provide advertisers with AI-driven tools to enhance their campaigns and meet evolving customer expectations.