Overcoming AI Limitations and Data Privacy Challenges Through Marketing Research

September 04, 2024
by Santiago Solutions Group

The digital landscape is rapidly evolving, bringing new opportunities and challenges for the marketing industry, particularly in the realms of AI development and data privacy. Carlos Santiago, CEO of Santiago Solutions Groups, Inc. and Co-Founder of ANA AIMM, along with other industry professionals, continue to unpack the implications of advancements in AI, the inherent biases and limitations within AI, and the obstacles posed by the deprecation of cookies and changes in privacy laws. This article explores how marketing research plays a crucial role in navigating these complexities, ensuring that strategies are effective while remaining inclusive and respectful of consumer privacy.

Research Enhances Your AI Strategy

AI technology has made remarkable strides, influencing every aspect of marketing, from creative processes to audience targeting with transformative power. However, these advancements come with inherent biases and limitations. At AIMM’s most recent July 2024 Member Forum, Alan Schulman, co-founder and Chief Creative Officer at Upper Right, emphasized the importance of integrating diverse cultural insights into AI training to avoid reinforcing stereotypes and biases. He stated, “We need to make sure AI is fueled by data that represents the full diversity of our culture… it doesn’t get churned down to some stereotypical average.” This underscores the need for continuous research to ensure that AI outputs are culturally nuanced and representative.

Why is marketing research a crucial part of your AI strategy?

  • It provides the data and insights needed to train AI systems effectively.
  • By conducting comprehensive studies and gathering diverse data sets, researchers can identify and mitigate biases, ensuring that AI tools are not only innovative but also equitable.
  • When utilizing AI in content creation, insights from target profiles and both quantitative and qualitative research can help customize inputs to create outputs that resonate with diverse consumers.

Using Research to Adapt to Privacy Law Changes

The marketing industry also faces significant challenges due to evolving privacy legislation and the deprecation of cookies, which impact data collection and audience targeting. Carlos Santiago highlighted the cascading effects of these changes, such as restrictions on the use of personal identity data in regards to race, ethnicity, and sexual orientation. “At AIMM, we focus on many issues that impact the progress of marketing to all these audiences that are in the ‘general market’ but have traditionally performed better when addressed in a targeted way.”

The fragmented approach to privacy laws across states complicates data collection and usage. Chris Owens, Executive Vice President and Head of Law and Ethics in Government at ANA, stressed the need for a unified national privacy law. “We need one standard for all of America… to be able to use data responsibly in a way that benefits all of us and still is workable.”

How does research help marketers adapt?

  • Continuous analysis and data collection can help marketers understand the impact of these laws on their strategies, allowing them to develop approaches that are both effective and compliant.
  • Uncovering insights into consumer preferences and behaviors allows for more accurate targeting and personalization that goes beyond just race and identity targeting.

The Indispensable Role of Marketing Research

Marketing research is not just a tool for understanding consumer behavior; it is the foundation upon which effective and inclusive marketing strategies are built. It allows marketers to be proactive instead of reactive. For example, the Cultural Inclusion Accelerator validates that Cultural Relevance, measured through CIIM™, accounts for 66% of sales lift in CPG and retail sectors in their 2023 study. Furthermore, the combination of cultural authenticity and positive DEI reflections can increase purchase intent up to 2.9x.[i] Marketing research is the most effective way to reveal diverse segments’ values and motives needed to achieve Cultural Relevance.

Recent discussions from industry thought leaders underscore the vital role of marketing research in addressing AI biases and evolving privacy laws. It is clear to us that without robust research, the effectiveness and inclusivity of marketing strategies are at risk. SSG’s case studies showcase how we help brands in all sectors, from CPG, Non-Profit, Healthcare, Insurance, and more, achieve growth through our comprehensive suite of solutions. Marketing research is the backbone of modern marketing strategies, enabling marketers to understand and navigate AI and data privacy complexities, ensuring innovative and inclusive efforts. As we move forward, the industry must prioritize research to overcome these challenges and create a more equitable digital future.

[i] CIIM™ CPG & Retail Attribution Study 2023

About us

For 20 years, Santiago Solutions Group (SSG) has guided growth pathways for scalable returns by uncovering cultural and marketplace insights.
These insights forge the fact-based foundation for effective business and brand growth strategies aligned with cultural insights across Hispanic & Asian acculturation levels, Black, LGBTQ, Non-Hispanic White, Gen Z, Millennials, and other segments.

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