The Next Phase of AI - ROI

The Next Phase of AI - ROI

In 2025, industries will consolidate their AI strategies after a year of testing, tweaking, and refining. Procurement marketing is no different, and as AI solutions continue to evolve, it's essential for organisations to adapt their strategies and maximise their potential. And, a big part of this will be proving ROI.

AI is fundamentally changing the way agencies operate and the services they can deliver. As AI tools become more sophisticated, agencies are increasingly able to automate tasks, streamline workflows, and generate more creative content. This shift has implications for traditional agency remuneration models. To navigate this evolving landscape, procurement marketers must develop a clear understanding of their agency's baseline performance, including metrics such as ROI, conversion rates and brand awareness. Marketers can also use AI-powered analytics to identify opportunities for cost savings and increased efficiency. For example, AI can help analyse historical data to identify trends and patterns that can inform future negotiations.

Additionally, procurement marketers can consider shifting to performance-based remuneration models that align agency incentives with their business objectives. AI can help track and measure performance metrics more accurately, making it easier to evaluate agency performance and adjust fees accordingly.

Generative AI (Gen AI) is already being used in the industry to create content. By leveraging Gen AI, procurement marketers can enhance creativity by generating new ideas, brainstorming creative concepts, and developing innovative marketing strategies. Improving efficiency is also possible by automating repetitive tasks, such as content creation, social media posting and email marketing.

Equally, Gen AI enables the creation of highly targeted and personalised marketing messages at scale. To successfully implement Gen AI, it's essential to align creativity with operational efficiency. This involves defining clear objectives, selecting the right tools, providing team training and support, and continuously monitoring and evaluating the performance of Gen AI initiatives.

While AI offers tremendous opportunities, it also presents significant risks, including legal, ethical, and reputational risks. To mitigate these risks, procurement marketers must take proactive steps to ensure comprehensive and legally sound contracts for agency governance and oversight of Gen AI use. Key considerations include clearly defining ownership rights for AI-generated content, implementing robust data protection measures to safeguard sensitive information, establishing guidelines for the ethical use of AI, and developing comprehensive contracts that address issues such as liability, indemnification and dispute resolution.

By understanding these key areas, and taking proactive steps to address the challenges and opportunities presented by AI, procurement marketers can harness the power of AI to drive significant ROI and achieve sustainable growth.