By

National Research Group

Full Report Here

CONTACT

nick.crofoot@nrgmr.com

SIGN UP FOR OUR INSIGHTS BLASTS

A new battlefront in the Tech Wars heated up last week with Microsoft’s announcement and hands-on demo of new AI capabilities in its Bing search engine and Edge browser. Google quickly followed suit by announcing its own conversational AI in a blog post on Monday and at an event in Paris later in the week. This all comes on the heels of ChatGPT’s launch late last year, which eclipsed 1M users in 5 days and 100M in less than two months.

With all the buzz, we wanted to take a pulse on public opinion and understanding of this emergent technology, so we surveyed 1,000 US Consumers on Tuesday this week. Here’s what we found…

NEWS STILL BREAKING THROUGH

While last week felt like a whirlwind of announcements and media coverage, it’s important to keep in mind that news about AI-powered search is only just beginning to break through to the masses. 17% of those we surveyed said they had heard a “great deal” about AI-powered search recently, and 53% had heard at least “some.” That’s not bad one week in, but there’s a long way to go before companies build mainstream familiarity and understanding of the technology.

DON’T COUNT GOOGLE OUT

Last week did not go as well as Google likely hoped with many headlines focusing on Bard’s inaccurate assertion that the Webb Space Telescope was the first to capture images of an exoplanet and a tepid media response to the event in Paris. But one week’s headlines will not determine the long-term trajectory of who wins the race.

SO WHO HAS THE EDGE?

Disruptor or incumbent? Microsoft certainly has taken the initiative, having released a functional product that is already available to beta testers (and a lengthy waitlist to gain access). They also plan on investing $10 billion into OpenAI. Google is the overwhelming incumbent in the search space, commands vast resources, and has assembled a formidable team that has been working on this technology for many years. The public appears to be favoring Google’s incumbency at this stage.

59% of those who have heard about AI-powered search say Google is best positioned to successfully deliver the technology to market …compared to 13% for Microsoft

Time will tell how much that shifts in the coming weeks and months as familiarity with the companies’ offerings deepens, and more users get their hands on the technology.

 

Looking forward, consumer excitement is palpable

A lot remains to be seen, but consumer excitement for the technology is building.

 

71% of those who have heard about AI-powered search say they’re excited about using the technology and 92% say they believe it will change the way people use the Internet. Why? Improved ease and speed of finding information and improved accuracy and relevance of search results are the key benefits driving their excitement.

IMPLICATIONS

As we look ahead, a few thoughts on how this will play out from here…

 

Finding the Early Adopters

Which companies will effectively find the segments of the population that drive early adoption and help their products cross the chasm? Our data points to the usual suspects as early adopters: Younger consumers (ages 18-34) who skew male, those working full time (who perhaps see workrelated applications/benefits), and more affluent and educated consumers.

 

Managing Expectations

The potential for conversational AI is clear, but as we’ve already seen, it’s still a work in progress. The process of “deep reinforcement learning” that drives applications like ChatGPT will take time to mature and there will be missteps and inaccurate results in the interim. Continual improvements in accuracy while managing consumer expectations will be important to mass adoption.

 

Achieving Product-Market Fit

In addition to generating excitement and driving trial, products will need to identify the Jobs to Be Done that will have staying power. With seemingly limitless applications for AI-powered search, what jobs can the technology do for users that deliver the most real, sustained utility? Keying in on these use cases and building products that are optimized for these needs will be critical to gaining a competitive advantage.

 

Monetization

Even new technologies that find the early adopters and achieve productmarket fit aren’t guaranteed a sustainable path forward—think of AI-powered voice assistants, which have achieved widespread adoption, yet struggled mightily to monetize. How will companies effectively monetize conversational AI? Will they follow the ad-supported playbook that Google has mastered? What subscription- based models will emerge?

 

Bringing AI into the Light

Now that AI is maturing across a new threshold, and as ChatGPT, Bing and Bard bring multidimensional algorithms forward in a radically new way, there may be an opportunity to incorporate a new level of transparency, education, and understanding of all AI, including existing algorithms that are already deeply interwoven into daily life. This may happen organically, as new AI are introduced; perhaps there is also an opportunity to create distinct and meaningful AI personas for existing tools, with inherent consumer choice built into the experience.

 

Proceeding Responsibly

There’s been much written about the unintended consequences and potential abuses of AI. Ambiguous and misleading answers, the expression of embedded bias, and the propagation of ideological filter bubbles are all concerns. Conversational AI will almost certainly be a proving ground for the extensive work that Microsoft, Google, and others have put in to anticipate consequences and safeguard against abuses. Close partnership between companies, their users, third parties, and regulatory bodies to ensure a responsible approach will be essential to maximizing the potential benefits of this new technology.

 

Want to learn more?
Contact Nick.Crofoot@nrgmr.com

 

Related

Articles

Post Thumbnail
Post Thumbnail
Post Thumbnail

Newsletter

Sign Up

By: Tim Hawes on February 3, 2023

 

Associate Strategy Director for Europe, Tim Hawes breaks down generative AI and gathers insights from teams at Assembly on ChatGPT and its applications.

Over the last two years, advancements in generative AI have been taking the world by storm, just check out some of the headlines:

Beethoven’s unfinished Tenth Symphony completed by artificial intelligence.

Why It’s So Hard to Resist Turning Your Selfies Into Lensa AI Art.

How a deepfake Tom Cruise on TikTok turned into a very real AI company.

ChatGPT passes exams from law and business schools.

Download this POV here.

Generative AI utilises machine learning to create new and unbelievably real digital content with minimal human intervention, leaving many questioning the ethical role this tech plays in our everyday lives. In practice, brands and marketers are assessing how these tools will impact their work and the future of their industries.  

We spoke with some of the brilliant minds at Assembly to get their points of view and what they’re excited about when it comes to generative AI.

 

What can generative AI be used for, other than creating AI art of cats?

Tim Hawes, Associate Strategy Director for Europe: It has a tone of utility already and its rate of development is astounding. It seems like a new AI for “X” is released or posted every day. It can pretty much answer any question you throw at it (ChatGPT, that is). It’s like a chat-based Wikipedia in that regard. I’ve asked it to explain history, maths and random facts or even write some marketing headlines or code snippets. It can write recipes – which is what really kickstarted my renewed interest in it. I watched a video where a chef explains her preferences; type of meal and the bot outputs a full menu and instructions for a full Indian-inspired thanksgiving dinner.

Other than cats, it (DALL-E) can create some genuinely interesting art, some can come out looking a little uncanny valley-esque though, depending on what you ask it to generate. There are AIs for everything,  theresanaiforthat.com is a database of many of them; I wouldn’t be surprised if an AI curated it. Because of the way that the ChatGPT  is trained, it can recount any set of information it has ingested, merging sources together and creating ‘new’ text, depending on how you prompt it. You can even ask it to ‘speak’ in a particular mode or instruct it to take on a particular role.

So as far as “what else CAN a generative AI do?” with enough quality input I’d be asking “what can’t it do?”

Are there limitations with ChatGPT and similar tech?

Pedro Mona, Global Director Martech & Data: Two of the major factors limiting scale right now are server capacity issues and computing power – ChatGPT was down recently because half of LinkedIn were trying to access it at the same time. There are also organisations using ChatGPT to churn out essays and sell them to university students, granted the work was brilliant, however, the machine didn’t seem to understand the concept of referencing. So, plagiarism and duplicate content could certainly be an issue – which brings us back to my point on training models specific to clients and brands. On the topic of coding, it’s certainly got applications in shortening writing time but it’s essentially not much different from stealing code from the slew of libraries out there anyway – that’s what everyone already does.

David Hidasi, Senior Data Scientist: In the role of data science, it can help us to generate and fill holes in data as well as create basic functions and give us shortcuts for coding – which humans can then elaborate on and develop. We’re not there yet as far as relying on it end-to-end, there will always be some requirement for testing and human curation – given the pre-trained nature of the networks.

What does AI mean for marketers and brands?

Kristie Naha-Biswas, Head of Strategy & Planning for Europe: AI is pretty amazing, but frightening at the same time.  The ability to produce content faster and more efficiently than humans may be appealing to brands or procurement as a new cost-efficient evolution in their marketing deployment, but there is one vital human component that this technology still lacks, which is empathy and emotion. Emotion is what makes art, in any form be that a painter or a musician, unique.  Art is a human expression of emotion that cannot be replicated by AI, it is the artists’ personal experience and original thought that elicits an emotional response from their audience – do we love it or hate it. Advertising creative is no different. Emotionally led and real, insight driven ideas are what makes creative distinct so brands can stand out to build that critical mental availability vital to any successful brand formula. I think there is a future role for how we can use AI to drive greater personalisation of a piece of content, or messages from an overarching creative idea, or concept.

Pedro Mona, Global Head of Data and Martech: The way agencies and brands are going to win with generative AI is integrating it into human-assisted workflows – where maybe an analyst could work on one or two things at a time, now maybe its three or five at once! Training and integrating generative AI models into a brand, where it understands the tone – the voice of the brand – will take it much further to “on brand” content than its current public training models. I see big applications for content in this regard.

The most interesting part is testing human versus AI versus human + AI. In my previous experience producing predictive models for media performance, the human-assisted AI campaign won by a landslide – the input quality and the human context for the brand and therefore analysis bore the best results. While I don’t see it replacing search engines entirely (the ability to index up-to-date data isn’t there yet) it has wonderful applications for accessibility – text to speech rendering and explanation of advanced topics can have brilliant utility for the visually impaired, for example. Ultimately, I think it’s going to become the new standard, improve parallel workflows and companies that can utilise it in the context of their own brands. There will always be an element of human intervention in quality control and analysis that I don’t see going away any time soon.

Download the Full POV here.

Related

Articles

Newsletter

Sign Up

By: Ray Day

CONTACT:

Ray Day
ray.day@stagwellglobal.com 

We wanted to share our latest consumer and business insights, based on research from Stagwell. Among the highlights of our weekly consumer sentiment tracking (fielded Feb. 10-12):

WORRIES ABOUT ECONOMY JUMP:

Today, 90% of Americans are concerned about the economy and inflation – up 5 points from last week and up sharply from 82% in December.

  • 84% worry about U.S. crime rates (up 6 points)
  • 82% about a potential U.S. recession (up 2 points)
  • 75% about affording their living expenses (up 5 points)
  • 75% about political divisiveness (up 3 points)
  • 72% about the War on Ukraine (up 2 points)
  • 55% about a new COVID-19 variant (down 2 points)
  • 47% about losing their jobs (up 2 points)
WHEN SHOULD COMPANIES SPEAK OUT?:

Following the State of the Union (SOTU) address, we surveyed Americans to pinpoint their views on the buy-American theme as well as to update our past research on companies “speaking out” on social issues. We found strong views on both.

“Made in America”

  • Nearly three-quarters (73%) of Americans say they often seek American-made products and brands when shopping (up 1 point from July 2022), especially true among those who watched some or all of the SOTU.
  • Regarding intentionally purchasing American-made products and brands, 71% report doing so a little bit or a lot.
  • 53% have shopped for an American-made product in the last month.
  • 76% of Americans agree that there should be more American-made products and brands available in the U.S.
  • 76% agree that brands need to make more products in the U.S. (up 1 point from July 2022).
  • 56% would be willing to pay more for a product if they knew it was American made.
  • However, 45% believe that American-made products already are too expensive.

“Speaking Out in America”

  • A third of Americans (38%) think that American companies are speaking out too much on social issues (up 6 points from July 2022).
  • 37% believe companies are speaking out the right amount (down 3 points from July 2022), while 25% believe they aren’t speaking out enough (down 3 points).
  • 68% of Americans think that, when companies voice their opinion on a social issue, it’s a marketing ploy (up 12 points from July 2022).
  • When companies are speaking out on social issues, 71% of Americans agree that a company’s history on social issues is important.
  • 60% agree that when a company speaks out on social issues, it must be supported by living their internal company values.
  • More Americans believe that there is generally more risk (59%) to a CEO speaking out on social issues (up 5 points from April 2022) than reward (41%).
  • Democrats (55%) are more likely to believe there is more reward in a CEO speaking out than Republicans (33%).
  • Americans also believe that CEOs expressing their own political views is bad for the company (47%, up 5 points from April 2022), more so than good.
TRAVEL TRENDS FOR THE NEXT DECADE:

During the next three years, nearly 2 billion people will travel at least once a year – making the travel and hospitality industry continually attractive. Yet what does the future hold? Stagwell’s Northstar partnered with travel technology company Amadeus on new research defining four new types of travelers – in a report titled Traveler Tribes 2033 – who will emerge in the next decade along with suggestions on what brands need to do to create relevant travel experiences for them.

  • Excited Experientialists:
    • 44% are without children and have a mid- to high-income job with flexible working options, which enables them to readily explore the world. They are more likely than other travelers to act on instinct, making them “anti-planners” and favoring less predictable and more exciting accommodation experiences. They also are open to technology like the use of artificial intelligence in the airport environment.
  • Memory Makers:
    • 44% are ages 42 and older and are habitual in their travel behaviors. They put people first and place less value on technology and sustainability, reassured by existing methods. Despite their skepticism about technology, they are excited about virtual reality and augmented reality preview tours before purchasing a trip.
  • Travel Tech-fluencers:
    • 48% of the group are under the age of 32, and their perspective is symbolized by how much technology they own. While many want to travel sustainably, they are more conscious about sustainability options around their method of travel, rather than where they’ll be staying.
  • Pioneering Pathfinders:
    • 82% are between the ages of 23 and 41. They like to plan but are not afraid of risk and are open to new experiences. This group is more willing than others to let sustainability influence their decisions. They will be very comfortable using all forms of alternative payment methods – whether cryptocurrency or within a virtual reality environment.
EMPLOYEES AND HR DISAGREE ON RACIAL EQUITY PROGRESS:

Our new State of Inequity report with Hue illuminates wide disparities along racial lines in workplace opportunity, compensation and experience in a post-pandemic labor market.

  • More than 200,000 Black and Latina women have disappeared from the workforce since the pandemic’s beginning. Many have stopped looking for new jobs, making them invisible to unemployment statistics and ineligible for federal benefits.
  • Most BIPOC employees report their employer has not instituted racial awareness training (82%) nor have they increased recruiting efforts toward racially diverse hiring (81%).
  • A gap exists between HR and employees: 84% of BIPOC employees report their company has not addressed the mental/emotional impact of discrimination on its employees of color since June 2020. At the same time, 91% of HR professionals surveyed say the various diversity-related initiatives their companies have implemented are effective.
  • One in four BIPOC women report not being paid fairly and in a comparable way to other colleagues at their level across their company.
  • BIPOC women are twice as likely not to be paid fairly and in a comparable way to other colleagues across their company compared to white men.
  • Two in Five BIPOC women reported feeling exhausted or burned out last year because of their workplace.
  • BIPOC women are twice more likely to report they have felt fatigued related to racial tension or issues at work in the last six months compared to white men.
  • More BIPOC women are not comfortable being fully themselves at work, twice as likely compared to white men.
  • Even in the face of workplace hardships, BIPOC women are investing in themselves. Nearly twice as many BIPOC women (45%) report gaining new skills or education to become a more competitive job candidate compared to white Americans (27%).
ICYMI:

In case you missed it, check out some of the thought-leadership and happenings around Stagwell making news:

As always, if helpful, we would be happy to provide more info on any of these data or insights. Please do not hesitate to reach out.

 

Thank you.

 

Related

Articles

Newsletter

Sign Up

By: Ray Day

CONTACT:

Ray Day
ray.day@stagwellglobal.com 

We wanted to share our latest consumer and business insights, based on research from Stagwell. Among the highlights of our weekly consumer sentiment tracking (fielded Feb. 3-5):

WORRIES ABOUT JOB LOSSES JUMP:

Today, 85% of Americans are concerned about the economy and inflation – down 2 points from last week and up from 82% in December. Concerns about job losses, however, are on the rise.

  • 80% worry about a potential U.S. recession (down 2 points)
  • 78% about U.S. crime rates (down 3 points)
  • 72% about political divisiveness (down 3 points)
  • 70% about affording their living expenses (up 4 points)
  • 70% about the War on Ukraine (up 1 point)
  • 57% about a new COVID-19 variant (down 1 point)
  • 45% about losing their jobs (up 3 points)
18% OF GEN Z WOULD BE HAPPY TO BE LAID OFF:

“Laid off and loving it” is the mood of a small but vocal group of employees caught in the job cuts roiling firms from Wall Street to Silicon Valley, according to our survey with Bloomberg.

  • 18% of Gen Z and 15% of Millennial employees say they would be happy being laid off, more so than their older colleagues (Gen X: 8%, Boomers: 6%).
  • Overall, one in 10 employees say they would feel thankful (9%), relieved (10%) and happy if laid off today (12%).
  • Of those who experienced a layoff in the last year, 42% spent more time with friends and family, on their hobbies (28%) and their physical (26%) and mental health (29%).
  • Most employed Americans (43%) say that, if they were laid off today, they would find another job within three months. Yet that changes across generations, with Boomers (28%) less likely to think so than Gen Z (43%), Millennials (48%) or Gen X (47%).
CHILDCARE SPENDING HAS ITS LIMITS:

How much are you willing to spend on childcare before it no longer makes sense to work? Most Americans say an average of $617 a month is fair. Yet, if childcare costs eat away a quarter of their paycheck or more, nearly half of parents with young children under the age of 5 would consider being a stay-at-home parent, according to our survey with Fortune.

  • On average, U.S. families spend an average of 17.8% of their income on childcare.
  • Younger workers are more willing than older Americans to pay more for childcare. And fathers are willing to spend about $100 more per month than mothers ($668 versus $568).
  • More than a third of stay-at-home parents ​​say they left their jobs to care for their children because of financial difficulties in affording childcare (19%) or limited childcare availability (17%).
  • Among former and current stay-at-home parents, 36% say they felt forced into leaving the workforce to care for their children.
  • 87% of Americans say they would continue working if childcare was more accessible – with high agreement across all age groups.
  • 52% of stay-at-home parents with children under the age of 5 believe their careers have been negatively affected by that choice.
  • 68% of both men and women believe mothers are penalized more in the workforce after staying home to care for children.
MORE TRUST CONCERNS ABOUT AI:

Americans rely on artificial intelligence to inform everyday consumer choices like movie recommendations and customer service inquiries, yet they draw the line when it comes to trusting AI for high-value applications, such as autonomous vehicles, accessing government benefits and healthcare. Our survey with MITRE also found:

  • 48% of Americans believe AI is safe and secure.
  • 78% are very or somewhat concerned that AI can be used for malicious intent.
  • 82% of Americans and 91% of tech experts support government regulation.
  • 70% of Americans and 92% of tech experts agree that there is a need for industry to invest more in AI assurance measures to protect the public.
  • Three-quarters of Americans are concerned about deepfakes and other AI-generated content.
  • Only 49% would be comfortable having an AI-based online chat for routine medical questions.
  • Similarly, only 49% would be comfortable with the federal government using AI to assist benefits processing.
ESG INVESTOR INTEREST GROWS

Most investors are interested in ESG and want their advisors to show them the path forward, based on our survey with Nuveen.

  • 75% of investors older than 21 with at least $100,000 in investable assets see their company ownership as a way to get businesses to address ESG-related risks and opportunities.
  • 57% would be interested in shifting their portfolios to invest only in companies with net-zero emissions.
  • 80% said that companies should be more transparent about ESG issues.
  • 73% said they would be more likely to invest in businesses that are open about their plans for addressing those factors.
  • Last year’s findings from the 2022 Milken Institute Harris Poll Listening Project found that 68% of executives said their company has as much as a quarter of their portfolio dedicated to ESG investments. Yet 32% said their companies lack ESG investments entirely.
ICYMI:

In case you missed it, check out some of the thought-leadership and happenings around Stagwell making news:

As always, if helpful, we would be happy to provide more info on any of these data or insights. Please do not hesitate to reach out.

 

Thank you.

 

Related

Articles

Newsletter

Sign Up

By: Ray Day

CONTACT:

Ray Day
ray.day@stagwellglobal.com 

We wanted to share our latest consumer and business insights, based on research from Stagwell. Among the highlights of our weekly consumer sentiment tracking (fielded Jan. 27-29):

ECONOMIC WORRIES MIXED:

Today, 87% of Americans are concerned about the economy and inflation – up 1 point from last week and up from 82% in December.

  • 82% worry about a potential U.S. recession (down 1 point)
  • 81% about U.S. crime rates (up 1 point)
  • 75% about political divisiveness (up 4 points)
  • 69% about the War on Ukraine (up 1 point)
  • 66% about affording their living expenses (down 5 points)
  • 58% about a new COVID-19 variant (down 2 points)
  • 42% about losing their jobs (down 7 points)
PARENTS WANT CHILDCARE SUPPORT AT WORK:

Parents increasingly feel unsupported in the workplace and expect more childcare support from employers and the government, based on our new Parent Confidence Report with KinderCare.

  • 61% of working parents say there is a disconnect between the level of support they need and the benefits their employer provides.
  • Childcare benefits are the second most important reason for parents staying at their current job – with 18% ranking them as the most crucial benefit – behind health insurance.
  • More than half of working parents would stay at their current job if their employer provided childcare benefits, such as pre-tax benefits, emergency/backup childcare and on-site childcare.
  • 70% of parents say childcare is at a crisis point in terms of accessibility and affordability.
  • 66% believe the government should offer universal childcare to all children, from birth to kindergarten.
1 IN 10 LOOKING FOR NEW HOME, BUT WITH UNREALISTIC PRICE EXPECTATIONS:

For the fifth year in a row, most Americans (83%) say buying a home is a priority. Yet, in our latest survey with NerdWallet, high mortgage rates and a seller-friendly housing market prove to be obstacles – along with unrealistic home price expectations.

  • 11% of Americans say they plan to buy a home in the next year.
  • Prospective buyers hope to spend $269,200 on average. This is significantly lower than the typical home price of $379,100.
  • 32% of Americans feel worse about their ability to purchase a home in 2023 than in 2022 (a 7-point increase from last year).
  • The top reasons for the more negative outlook include a worsening economy (58%), higher mortgage rates (57%) and higher home prices (57%).
  • 67% of Americans say a housing market crash is imminent in the next three years.
INVESTORS RETHINK RETIREMENT PLANS:

Turbulent market conditions and rampant inflation have forced investors to consider working after retirement, based on our survey with Nationwide.

  • 69% of non-retired investors say post-retirement employment could lie ahead.
  • 44% of these investors inclined to keep working say they’ll have to supplement their retirement savings or income out of necessity.
  • 40% of non-retired investors plan to move to a different city or region after retiring, with the most common reasonings being lower cost of living (43%) and lower taxes (34%) – far ahead of being closer to family (22%).
  • 49% of non-retired investors with a financial advisor are “very nervous” about spending down their retirement savings in today’s current market environment.
LACK OF TRUST OVERSHADOWS NEW AI TOOLS:

Businesses might need to slow their roll when it comes to adopting AI tools like ChatGPT and DALL-E2, according to our latest study with AdAge.

  • 52% don’t trust AI tech.
  • 54% are familiar with generative AI tools, and nearly a fifth have used one.
  • 67% of Americans are concerned about the safety of generative AI technology.
  • Only 29% said they have not used generative AI nor are they interested in doing so.
  • Less than half (44%) say that it is easy to tell the difference between something created by AI and something created by a human.
  • 58% think things created by generative AI tools are less impressive than things created by people.
ICYMI:

In case you missed it, check out some of the thought-leadership and happenings around Stagwell making news:

 

As always, if helpful, we would be happy to provide more info on any of these data or insights. Please do not hesitate to reach out.

 

Thank you.

 

Related

Articles

Newsletter

Sign Up

By: Mark Penn 

Originally Published on: Barron’s

About the author: Mark Penn is chairman and CEO of Stagwell, a technology-based global marketing services firm.

Technology’s Wild West era is coming to an end. For decades, American policy has been hands-off technology to let it grow and innovate. On the eve of the dawn of artificial intelligence and the metaverse, the bad taste consumers have of social media and its divisiveness suggests that more aggressive regulation is just around the corner.

The recent round of layoffs won’t do much to staunch consumers’ fears that technology is enabling the possibility of a surveillance state. Their concerns will accelerate movement on tech privacy, censorship, anticompetitiveness, and national security legislation in the U.S. and abroad in 2023.

Half of consumers in America fear that technology will undermine their personal freedoms over the next decade, and 70% worry that tech will give more power to big corporations. The younger generations are particularly suspicious of Big Tech. Elon Musk gave some journalists access to Twitter’s records after he bought the social company. The reports they produced, known as the Twitter Files, were a damning revelation that government officials were pulling the strings behind the curtain and that the tech companies were willingly obedient much of the time.

In a recent Harvard-Harris Poll, 70% of voters now support a national law to prevent corporate censorship. The saving grace for the tech industry may be that many Democrats believe that they have been benefiting from the censorship and will oppose such a law, not understanding that what goes around comes around. They will regret blocking this legislation when they believe that they are the ones being censored. I expect this to be a significant issue in the 2024 campaign.

If Big Brother colluding with Big Tech keeps consumers up at night, the thought of TikTok being a Trojan horse for Chinese influence and spying is catnip for Congress seeking to look tough on China. Before the close of the year, leaders let loose a rash of state-based restrictions on the use of the platform by government officials. The House banned its members and staff from downloading the app. TikTok has dozens of trends working against it: Democrats and Republicans are largely aligned on the need to curb China’s influence, the Biden administration’s negotiations with TikTok have stalled, and difficult news continues to leak that employees at TikTok have misused the app, most recently to spy on journalists. The company has said it doesn’t share data with Beijing, and it fired staff members that it said were involved in the spying incident.

Voters might be less invested in the diplomatic implications of a TikTok ban than your senator, but rest assured that if the government enacts an outright ban, consumers will be up in arms. TikTok is the fastest-growing social-media platform in the U.S. and has been taking ad-market share from its legacy competitors. Expect a compromise that allows TikTok to operate but puts restrictions on how it can use and distribute information.

Beyond the U.S., data-privacy regulations will mature in 2023, meaning that global businesses will face more severe restrictions as they do business across borders. Countries have moved to enact data-privacy regulations since the implementation of the European Union’s General Data Protection Regulation in 2018, and now more than 100 have rules in place, according to Forrester. By 2024, an estimated 75% of the world’s population will be covered under modern privacy regulations.

The good news is that businesses have tracked the “will they, won’t they” drama around Google’s plan to phase out user-tracking “cookies” long enough that they’ve found solutions to replace the tool—and have adjusted data-privacy standards. But a more bullish Federal Trade Commission, with a renewed focus on “harmful commercial surveillance and lax data security,” will mean that it isn’t time to rest on laurels. It’s unlikely that the U.S. will get a national standard like the proposed American Data Privacy Protection Act. But expect the FTC to oppose virtually any merger-and-acquisition activities in tech, even if the government loses its cases.

The impulse isn’t uniquely American. The EU is also taking anticompetitive action against tech giants with the adoption of the Digital Markets Act, which aims to curb the market power of dominant digital companies. We have yet to see alignment on comparable federal efforts in the U.S. but the FTC’s recent intervention into Microsoft’s Activision deal hints at more to come. The FTC will take on Google, too, for alleged anticompetitive practices, in September.

Big Tech remains a critical engine of economic opportunity and innovation. But once it began carrying news and political speech, the industry crossed a line that put it in politicians’ crosshairs. This eroded their traditionally loyal Republican free-market supporters as the Democrats were moving further to the left, taking on a more anti–big business flavor. The combination of these trends just may result in the first major year of regulation of the industry.

Related

Articles

Newsletter

Sign Up

By

By: Rafe Needleman, SVP, Technology Content, Allison+Partners

 

CONTACT

hello@stagwellglobal.com

SIGN UP FOR OUR INSIGHTS BLASTS

Artificial Intelligence will change your job — not in five years, not next year, but now. If you’re not 100% convinced, spend some time experimenting with ChatGPT, the conversational chatbot released into open beta by OpenAI in November 2022. ChatGPT is the first free and easytouse chat product based on the groundbreaking GPT 3 Large Language Model (LLM). 

The product is a web-based chat system you can have a real conversation with. It is uncanny how well it constructs text output based on almost any input. It can answer questions, generate what appear to be original ideas and hold a decent conversation on any topic. It can also create plausible technical documentation, such as computer code and macros, and food recipes.  

If you haven’t already tried it, you should. This technology will have a huge impact on communications, marketing and advertising. It will change your job, as much as the introduction of the internet did.   

For many people, ChatGPT provides the first glimpse into what this type of AI will do for us in the future. It is both amazing and terrifying. And the revolution starts today.  

Here’s what to know to get started: 

1. You can use ChatGPT today to improve your productivity.

ChatGPT a great collaborator for generating ideas and outlines. Experiencing writer’s block? Ask ChatGPT to help get you going. Try “Outline an article about…” for starters.  

ChatGPT is also good at getting you up to speed on new topics (Try, “Explain Kubernetes”) and summarizing meetings and complex stories: Type, “Give me the bullet points for this:” and then paste in text from a transcript or story. It can even write Excel macros and more advanced computer code. As part of your existing workflow, ChatGPT can be a great starting point. But keep in mind it can’t (yet) replace all your human skills. Keep reading for why.  

2. ChatGPT lies.

ChatGPT is designed to create text that fits a linguistic model. While it is often useful and accurate, it does frequently make stuff up out of nowhere. In some instances, it gets facts completely wrong (ChatGPT seems to be convinced Russia has sent several bears into space, for example; it hasn’t!). Even if it has the correct information in its enormous corpus of knowledge, that doesn’t mean it understands it, and its output can sound completely plausible while being far off target. It’s also critical to remember ChatGPT was trained in 2021. It knows nothing about the world after that.  

Simply put, you can’t trust ChatGPT for accuracy. Always verify what it gives you. 

3. The field is evolving fast, and you need policies.

If you’re going to use this technology, it’s important to lay out clear guidelines as to how. For example, if you use ChatGPT to write an article for a client, does that need to be disclosed? How about if you use it to prepare social media copy? Let’s say you ask it to write a blog post optimized for a particular audience or SEO. Or maybe you just use it to get an article outline started. Is that something you need to tell stakeholders? 

Communications companies have already caught flack for using generative AI to create content. Publications like CNET have used ChatGPT to write articles for months, The Associated Press has incorporated some kind of AI since 2015, and even The Washington Post employed it to help write for the 2020 Presidential Election. They are all still working out how to use it and how they should publicly disclose its use for written articles.  

You must work out how you incorporate the technology into your day-to-day work in a responsible way.  Make it clear how your teams should and shouldn’t use the tool, knowing its limitations and pitfalls. And make sure you communicate this to partners and customers.  

4. Meet the “AI Native”

The capability of AI to generate original and useful creative work at scale will prove to be one of the foundational technologies of the 21st century. It will change how we live, work, learn and even think. The children born into this world will be “AI natives” and will understand the world of ideas in a different way from their parents. We can hope this technology will mostly be used to advance the way we learn and think, just as calculators changed our relationship with math. But we simply do not know yet how the developing brain will react to this type of machine intelligence. 

One thing we do need to look out for, though, is a growing digital divide exacerbated by this technology. AI is not cheap to create or run, and some populations may just not have access to it, potentially putting them at an economic disadvantage. It will be a global challenge to create a responsible framework for the distribution of this tech. 

5. Generative AI will impact your job, but it won’t kill it.

The software’s ability to create useful customized content is staggering and fundamental. It will certainly change how you work, as well as the nature of creative work at all levels and in every industry, worldwide.   

However, no matter how useful (or damaging) this technology becomes, AI will always lack imagination, vision and compassion. Adapting to this new technology will not be easy, it is still only a tool, and we can use it to reinforce our best, most human qualities. It will still need you – your humanity, your personality, your perspective and your soul.   

Be ready to change, adapt and embrace this new technology as another tool in your box of tricks. 

Those who ignore the power of AI in communications will fall behind a skills curve. It’s something we’ve already embraced at A+P as one of the many tools we use. And we help clients navigate how to make the most out of this amazing technology. Keep following this blog and our social media feeds on LinkedIn, Twitter, and Facebook as we continue our series on the power of AI.

Disclosure: This story was written by a human.

Related

Articles

Post Thumbnail
Post Thumbnail
Post Thumbnail

Newsletter

Sign Up

By: Ray Day

CONTACT:

Ray Day
ray.day@stagwellglobal.com 

We wanted to share our latest consumer and business insights, based on research from The Harris Poll, a Stagwell agency.

ECONOMIC WORRIES MIXED:

Today, 86% of Americans are concerned about the economy and inflation – down 2 points from last week and up from 82% in December.

  • 83% worry about a potential U.S. recession (up 1 point)
  • 80% about U.S. crime rates (no change)
  • 71% about political divisiveness (down 1 point)
  • 71% about affording their living expenses (down 3 points)
  • 68% about the War on Ukraine (up 3 points)
  • 60% about a new COVID-19 variant (up 1 point)
HALF OF GEN Z SEARCH THE WEB VERSUS CALLING A DOCTOR:

More Americans know their astrology sign (66%) and credit score (58%) than their blood type (51%) or cholesterol level (20%), according to our survey with Quest Diagnostics.

  • Even fewer younger Americans know their blood type (Gen Z: 32%, Millennials: 47%).
  • Younger Americans also are relying on the internet for health information. While the majority of Americans (63%) receive health advice from healthcare professionals, only 44% of Gen Z do the same. Instead, more than half of Gen Z (52%) utilize internet searches.
  • Additionally, more than one in five Americans (22%) receive health advice from social media influencers, especially Gen Z (40%) and Millennials (39%) versus Gen X (18%) and Boomers (3%).
FREE FOOD, SUBSIDIZED COMMUTING COULD BRING WORKERS BACK TO OFFICE:

What will entice employees back to the office? It seems that free meals (63%), free beverages and snacks (58%), and subsidized commuting (46%) – especially for workers outside the U.S. – will go a long way. That said, remote working isn’t a novelty anymore. Flexibility has become a baseline expectation for many employees, according to Stagwell’s National Research Group’s new “2023: Understanding the new world of work report.”

  • We surveyed more than 4,000 people in the United States, UK, Germany and Japan to explore how workers around the world have been navigating and adapting – and what that means for businesses that want to make a flexible world work for them, their users and their staff.
  • Only 11% of respondents said they prefer working in an office full-time.
  • Yet 60% have experienced issues staying engaged while working from home, and 50% have experienced a home technical issue – with tech issues growing since the start of COVID.
  • Employees are hungry for new at-home tech, including hands-free screens (69%), interactive learning/skills development (66%), virtual assistants (59%), and 3D object identification and training (52%).
AMERICANS LOOK LOCALLY TO SOLVE HOMELESSNESS:

Americans believe it’s up to local governments to fix homelessness, based on our survey with Grid.

  • 42% believe local governments should lead in addressing homelessness, followed by state government (26%), federal (14%), private sector (11%) and individuals (7%).
  • Yet, when asked how they expected homelessness to evolve in their area in the next five years, only 17% said it would get better, 41% said it would stay about the same – with rural Americans (34% say things will get worse) having the bleakest outlook.
ICYMI:

In case you missed it, check out some of the thought-leadership and happenings around Stagwell making news:

As always, if helpful, we would be happy to provide more info on any of these data or insights. Please do not hesitate to reach out.

 

Thank you.

 

 

Related

Articles

Newsletter

Sign Up

By

By: Aaron Kwittken, Co-Founder and CEO, PRophet

Originally Published in The Drum

CONTACT

hello@stagwellglobal.com

SIGN UP FOR OUR INSIGHTS BLASTS

When I launched PRophet in late 2020 I left behind both the ’comforts’ of agency life and the agency I founded. Fast-forward to 2023 and the road less traveled is now a digital super-highway destined to transform the PR industry as we know it, primarily using AI-driven technologies and techniques designed to make modern communicators more productive.

There’s been a lot of press lately about OpenAI’s ChatGPT. While mostly positive and exciting, some critics and naysayers claim the tool’s capabilities are overstated, while others worry that it could be the death knell of creativity by catalyzing complacency and plagiarism.

Some are comparing the rapid rise of ChatGPT to the introduction of the iPhone in 2007. One thing is certain, AI is arguably the most consequential innovation in modern history and is undeniably having a deeply profound impact on industries and facets of day-to-day life. For example, you can hire AI interns Aiden and Aiko; chat with any number of historical figures and celebrities that are living, dead, real or imagined through Character.AI; or hire a DJ through PlaylistAI. On a more serious note: thanks to researchers from MassGeneral, AI can accurately predict lung cancer risk in smokers and non-smokers up to six years into the future.

Microsoft, a major investor in OpenAI, has begun exploring ways to incorporate ChatGPT into its products, leading Google’s management to issue a “code red” and shift focus to developing AI products while laying off thousands of employees. In other words, shit is getting real.

So what does all of this mean for marketers, notably PR professionals and content creators? AI pierced the veil of doubt once upheld by a cabal of Luddites that dominated our industry. PR people who solely rely on or continue to tout their media relationships as their superpower will have the decision to make: become a fossil or become a communications engineer.

A communications engineer sits at the intersection of art and science. They create and manage narratives and drive audience engagement using data and insights to backstop their gut instinct. They build agile teams and fly-wheel tech stacks that deliver specific DIY solutions with minimal human involvement. They use software to find signals in the noise, sussing out and mitigating missiles of misinformation before they can cause harm. They are able to identify journalists’ interests before they make a pitch. And they use technology to generate first drafts of content like press releases, blogs, sticky headlines, crisis statements, bios and social posts.

They will not succumb to the once-dominant, winner-take-all industry tech heavyweights (you all know who I am referring to) who sell analog database systems replete with hackneyed, unfulfilled claims that everything can be done on one platform, from pitching to monitoring to attribution analyses. They see ChatGPT as just the beginning and are looking to continuously improve their performance and experiment with new generative AI models.

Adopting the mindset, tech stack and workflow of a communications engineer will future-proof PR professionals, agencies and brand teams alike. The future is now.

Related

Articles

Post Thumbnail
Post Thumbnail
Post Thumbnail

Newsletter

Sign Up

CONTACT

hello@stagwellglobal.com

SIGN UP FOR OUR INSIGHTS BLASTS

As we look to the future of marketing, one thing is certain: Artificial Intelligence (A.I.) will play a major role in shaping the industry. From generative A.I. revolutionizing the way we approach creativity to predictive A.I. providing unprecedented insights and analytics, the potential of A.I. in marketing is vast and exciting.  

But what exactly does the next decade hold for this rapidly evolving field? We asked some of the top minds across Stagwell, including leaders from the Stagwell Marketing Cloud, PRophet, Code and Theory, Colle McVoy, Yamamoto, Concentric Health Experience, and Vitro, to share their predictions and insights on the future of A.I. in marketing.  

A.I. Won’t Eat the World – But it Will Give Consumers Time and Brands Opportunity

Mansoor Basha, Chief Technology Officer, Stagwell Marketing Cloud

“AI and ML are at the forefront of driving digital transformation across industries and will undoubtedly continue to do so. In a 2011 op-ed, Marc Andreessen observed an environment in which software was increasingly becoming king, famously stating that ‘software is eating the world.’ His observation came about a decade after the peak of the 1990s dot-com bubble as companies like Facebook and Skype were booming. Looking to the next decade, I believe that AI and ML will be eating the world, changing the way we work, live, and interact with brands. 

I predict that as AI technology changes everything around us—with things like driverless cars and more efficient, sustainable systems—consumers will have more time on their hands. This will give brands the opportunity to leverage more pointed channels to reach audiences that have more free time to participate. AI will find brands’ ideal audiences and reach consumers in the right place at the right time, especially as AR and VR go mainstream. 

And as the hype around ChatGPT and generative AI simmers down, marketing teams will become more comfortable adopting a wide range of AI tools that help them build powerful workflows that drive innovation, aid in decision making, and create new business models. ChatGPT will be an entry point for many marketing teams as they look for relevant ways to use new technologies in their day-to-day work.”
 

Enhance, Not Replace

Aaron Kwittken, Founder and CEO, PRophet

“Generative AI, while not perfect, is the needle that pierced the veil of doubt and fear amongst marketers when it comes to adopting AI technology. The current limitations are only encumbered by the lack of data needed to make it more performative. 

When paired with the right inputs, this technology will make marketers more efficient by enabling them to create base content faster and better, freeing them up for higher value tasks like editing and strategy deployment. In addition to content creation for press releases, social posts, pitches, marketing collateral, blogs, and more, I see this technology as a huge aid when it comes to legal and compliance issues, especially when working with third parties like influencers and celebrity spokespeople.

Make no mistake, though, the downsides will need to be managed. 

Generative AI may reduce the need for junior staff; could be used as an accelerant to create and spread mis and disinformation; and could make professionals more complacent, less creative, and more transactional. This is where it will be on marketers to get creative about how they use this tool to enhance their current activities, not replace them.” 

The Key Word with A.I.? Enablement

Dan Gardner, Code and Theory Co-Founder and Executive Chairman

“At the moment, where we will see AI transformation is in how we conduct business. While traditional creative shops may be focused on stunts and activations, I believe the key word here is ‘enablement,’ and how the technology allows businesses to do what they haven’t been able to do before.

Where the technology is built into systems that yield long-term results. What this looks like exactly, we still do not know for certain, but I do know that technology at its best is when it has the power to drive meaningful change in people’s lives.” 

Watch Out for A.I.’s “WordPress” Era

Yamamoto Digital Team

In the end it’s not the technology that sells, it’s the story it tells.”  

Welcome to AI as shiny new toy, with machine learning, natural language processing and open access combining to create a sandbox for early adopters. Expect showy, public activations (e.g. Ryan Reynolds reading an AI-generated script for Mint Mobile) as well as backstage experimentation. We marketers will find it hard to pass on an instant first draft of everything we do.  

Then AI enters its WordPress phase. Smaller players will benefit from “good enough” templates that auto-generate content. Meanwhile experts will game AI’s limitations to circumvent the inevitable commoditization.  

There are also threats. To brand safety. To copyright laws. To beliefs about creativity. We’ll have hard conversations about everything from unconscious bias to criminal misuse. Then, in ten years, full impact. We imagine a golden age of hyper-targeted, account-based marketing. We also predict AI depreciating the value of individual assets a la Napster killing the compact disc. Expect real people to respond with bespoke, humanistic, artisan campaigns.   

Finally, a confession. That tasty quote at the top? ChatGPT wrote it. The prompt: Crystalize the future of AI in the haunted, optimistic voice of Don Draper. How’d we do?  

“Make it More Human” 

Ben Majoy, Creative Director, Observatory

We’re in the industry of threading the needle of perfection, constantly trying to find new ways to get as close as possible to what sometimes feels like an impossible vision. Artificial Intelligence is now creating a superficial answer to that question, but we’ll soon see that creating something narratively resonant means a lot more than a “vision” coming to life.

In the same way that a perfect cheeseburger just doesn’t taste as good as a sloppy one (or any other curated vs. bespoke experience example you want to use), we’re going to see that no matter how accurate the A.I. responds to our prompt, it will never FEEL as good as the human-made. There’s humanity in what we do.

Until Artificial Intelligence can replicate nostalgia, trauma, and emotions like seeing someone you haven’t seen in ten years and picking up right where you left off, we will also feel like something is missing. We’re about to enter the era of “make it more human,” taking the place of the “I’ll know it when I see it” feedback loop.

Sturgeon’s Law

Tom Sullivan, CEO, Vitro

RESPONSE TO YOUR PROMPT, FROM CHAT GPT (195 words) 

AI is already revolutionizing marketing…and this continue over the next decade. A big step will be through the use of machine learning algorithms to analyze consumer data and make more targeted, personalized recommendations. This will likely include personalized email campaigns, targeted social media ads, and customized product recommendations on e-commerce sites.

Or course…there are chatbots and virtual assistants. These tools allow companies to interact with customers in real-time, providing immediate support and assistance. They will also be able to handle routine tasks, freeing up human customer service reps to handle more complex inquiries. As time marches on these will continue to get better (and seem even more human). 

AI will also have a major impact on content marketing, as machine learning algorithms will be able to analyze consumer data and create more effective content. This could include personalized blog posts, videos, and other types of content that are more likely to engage and convert consumers. 

Overall, the use of AI in marketing is likely to increase efficiency, reduce costs, and improve the customer experience. Whilst there may be some initial disruptions as companies adopt these new technologies, the long-term benefits are likely to be significant. 

RESPONSE TO YOUR PROMPT, FROM TOM (195 words) 

See above. It’s so generative. It’s Sturgeon’s Law (90% of everything is crap). My guess is…AI will generate at least 50% of marketing assets/thinking. It’ll probably all be pretty smart…pretty good. But when it gets to emotional storytelling, powerful creative…it’ll be just like people, generating a lot of “crap”. AI is digital. Digital is binary. Zeroes and Ones. Blacks and whites. Much of creativity comes from the muted tones, the instincts and intuitions…the random brain synapses that live in the grays. I’ve spent a lot of time playing with AI in several arts (music, writing, imagery). Some of it really interesting, and maybe even gives bits of inspiration…but so much of it is just a mashup of elements we’ve seen before. Usually…you can tell AI was the ghost in the machine, right away.  

These are relatively early days, and they are super exciting…but here are three watchouts that come to mind:  racial biases and presenting incorrect information as true fact. And…look at the “open” in Open AI. It seems to be claiming that everything is open source. So I wonder; will I will end up being a windfall for intellectual property attorneys? Time will tell.   

The InkWell is Half Full for Copywriters

 

John Neerland, VP, Group Creative Director, Colle McVoy

Over the past month, ChatGPT has hit the world, the industry and advertising copywriters in particular, like a ton of virtual bricks.  

The reaction from writers I’ve talked to has ranged from cautious pessimism to downright dread. Gallows humor abounds. One writer quipped that it might finally be time to get HVAC certified.  

But I’m choosing, for now, to see the inkwell as half full. Just like Photoshop didn’t eliminate art directors and designers, ChatGPT won’t make copywriters obsolete.   

Out of the gate, ChatGPT is only as good as the inputs it receives. And even then, ask it to write headlines for a specific product or brand and you get a list that feels more like 50s newspaper retail ads than the One Show.   

So, if it isn’t pumping out pencil-worthy lines just yet, how can copywriters harness ChatGPT (and not be trampled by it)? Some initial ways include using it to get over blank page syndrome, getting unstuck from one idea or approach, exploring new tones and styles, making copy more search friendly and speeding up the more mundane writing tasks to free up time for more interesting ones.   

Over the next decade, my hope is that copywriters find ways to leverage AI not only as a technological aid to make their work easier and more efficient, but a tool to help make their ideas bigger and their writing better than they’ve ever imagined. Or maybe that’s just what the bots want us to believe. 

A Foundational 21st Century Development

 

Allison+Partners Digital team

Generative AI is about to change our world.  The capability of AI to generate original and useful creative work at scale is both amazing and terrifying, yet it will be one of the foundational technologies of the 21st century.  There’s no question it will change how we – as communicators and consumers – live, work, learn and even think.   

Tools like ChatGPT make it easier to quickly create targeted content, both written and visual. What’s more, it will help expedite what was once a very manual (and tedious) process by customizing and personalizing content for journalists, analysts and customers. In turn, there’s every chance that many of these pitches will be received by AIs with subsequent stories likely written by them as well. (In fact, some already are – controversially.)

Yes, AI may help everyone create content, just like calculators and spreadsheets help us generate numbers. But AI cannot imagine. It cannot bring years of client experience and strategy to the table. And it cannot replace passion, empathy or excitement for our clients and their offerings. AI is just one tool, plain and simple. We can and should use it to reinforce our best, most human qualities in the many years ahead. However, it will still need you – your humanity, your personality, your perspective and your soul.  

—-

This piece is part of Stagwell’s Marketing Frontiers content series on Artificial Intelligence. Visit this page to view other perspectives and work from Stagwell’s global teams on A.I.

Related

Articles

Post Thumbnail
Post Thumbnail
Post Thumbnail

Newsletter

Sign Up