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New Global Research from PHD and WARC Reveals AI Knowledge Gaps, Conflicting Expectations Among Marketing Stakeholders

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PHD

27 Aug, 2024, 15:45 GMT

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LONDON, Aug. 27, 2024 /PRNewswire/ -- Omnicom Media Group agency PHD Worldwide has released the results of its proprietary research benchmarking knowledge, adoption, expectations, and apprehensions around AI. Conducted in partnership with WARC, the study surveyed more than 700 senior marketers and agency professionals across 10 countries.1 The findings revealed significant gaps in desire vs adoption and perceived vs actual AI knowledge; as well as conflicting expectations around impact, including:

An Adoption Gap
The desire for generative AI adoption significantly outpaces current utilization levels. While 35% of client-side marketers and 36% of agency marketers feel generative AI should be utilized to a high or extremely high extent, only 27% of client-side marketers and 26% of agency marketers are currently using it at this level.

A Knowledge Gap
Nearly half of agency and client-side marketers (42%) consider their generative AI knowledge advanced, but quiz scores reveal a significant discrepancy between perceived and actual knowledge, with only 13.7% of all respondents scoring 2 or more out of 5 on the generative AI quiz.

Client Focus on Efficiency
Although agencies and client-side marketers are equally focused on generative AI's potential for innovation (52% and 51%, respectively), client-side marketers prioritize efficiency - 48% of client-side marketers prioritize streamlining repetitive tasks and freeing up resources, compared to 39% of agency marketers.

Technical Apprehension
Client-side marketers are more concerned about the lack of technical expertise in generative AI adoption than agency marketers. 38% of client-side marketers view the lack of relevant technical expertise as a limitation, while only 28% of agency marketers share this concern.

Higher Knowledge Respondents Foresee Major Changes

The findings also revealed that the more individuals knew about generative AI, the more they agreed that it would have a high or extremely high impact on marketing. Specifically, 44% of respondents with above-average knowledge agreed with this statement, compared to 32% of those with below-average knowledge.

Those with above-average knowledge were also more likely to see opportunities in new, innovative possibilities and ideas resulting from AI, rather than just streamlining repetitive tasks, 56% to 48%.

Respondents with above-average knowledge were also more likely to agree with the high cost of implementation, 43% to 32% of those with lower levels of knowledge, underscoring their ability to see the investment cost required for organizations to implement all the necessary components to create a fully connected enterprise platform.

Finally, only 21% of higher knowledge respondents believed that generative AI would replace actioning tasks currently carried out by agencies within the short term, versus 46% for those with below-average knowledge. This indicates that as the knowledge base increases, the perspective on AI's ability to automate becomes more realistic about the need for human involvement.

"As marketing stakeholders look for clarity in an AI information landscape that seems to get more cluttered and confusing every day, PHD wanted to level-set the conversation to real-world perspectives and expectations," said PHD Worldwide Chief Strategy Officer Mark Holden. "With this understanding, we can better help our clients eliminate the barriers to AI adoption in their marketing operations and strategies, enabling them to effectively leverage AI to outpace, outthink and outgrow their competitors."

WARC Advisory Director Katie Sterling adds, "While AI technologies are likely to bring about vast changes in marketing functions through unparalleled levels of innovation, today we are seeing a clear disjoint between expectations and reality. Significant knowledge gaps will have to be closed before AI can fulfill its potential, despite the current 'gold rush' of AI investment."

Implications from the PHD/WARC AI study will be further explored in PHD's Ascension, the agency's recently launched generative magazine offering a comprehensive and ongoing exploration of the impact of Generative AI on the marketing industry; and how clients and agencies alike will need to evolve their organizations and offers to effectively leverage the technology to drive business growth.

ABOUT PHD WORLDWIDE
PHD, an Omnicom Media Group Agency, helps the world's leading brands outthink, outpace, and outgrow the marketplace with a next-generation network of tools, talent and technology engineered for connected intelligence. Collaborating on the AI-powered Omni operating system, 6500 people in 81 offices across 74 countries connect data, technology, and human expertise to deliver modern media solutions that drive brands and businesses forward. Headquartered in the UK, PHD is currently the most awarded media agency network in the world according to the WARC Media 100, an independent ranking of campaigns and companies for creativity and innovation; and was named 2024 Global Media Network of the Year by leading US advertising publication Adweek.

About WARC – The global authority on marketing effectiveness
For over 35 years WARC has been powering the marketing segment by providing rigorous and unbiased evidence, expertise and guidance to make marketers more effective. Across four platforms - WARC Strategy, WARC Creative, WARC Media, WARC Digital Commerce - its services include 100,000+ case studies, best practice guides, research papers, special reports, advertising trend data, news & opinion articles, as well as awards, events and advisory services. WARC operates out of London, New York, Singapore and Shanghai, servicing a community of over 75,000 marketers in more than 1,300 companies across 100+ markets and collaborates with 50+ industry partners. 

WARC is part of Ascential plc.

1 Australia, Brazil, Canada, China, France, Germany, India, Japan, UK, and US

Logo - https://mma.prnewswire.com/media/2485601/PHD_Logo.jpg

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