Jeff Kagan: Why most new AI marketing strategies are failing

June 03, 2025 at 10:12 AM EDT

As an industry analyst, client companies are always looking for my input and critique of their marketing strategies and comparing it to others. They want to make sure they are on target and avoid wasting time and money.

I have seen some good ideas. However, most just throw ideas against the wall to see what sticks and build on that. AI makes matters even more complex. So, what is the solution?

Artificial Intelligence is brand new to most companies and their executive leadership. There is no centralized rulebook for AI success.

The good news is there are new rules for AI in marketing. The bad news is, so far, most companies don’t have a clue about the right and best marketing direction they should embrace.

How companies can find the best AI marketing strategy

We are still early in the AI game. Now is the time when companies can try different strategies, looking for the best one for them. This is not unlike the 1990s when the internet was still new and companies didn’t know the best marketing strategy for them. Eventually, they learned. There are many different strategies that work and many that don’t.

That’s why I believe companies will eventually learn the best AI marketing strategy for them to stand above their competition. Eventually.

Today, some seem to be doing better than others. That means some CEOs, CMOs and CTOs are better than others at AI. In fact, a new senior executive level has begun. It’s called CAIO or Chief AI Officer. And this is still very early in the growth curve.

If all that is true, some companies will hit the jackpot earlier than others. That’s why every company needs to jump into the sandbox and learn what works and what doesn’t. Most people today don’t yet have enough knowledge regarding AI. They are learning as they go.

What is your AI growth strategy and marketing strategy?

First, every executive, including the CEO, CMO, CTO, and CAIO, must all have a solid understanding of each other’s role, and be on the same page with regard to strategy moving forward. It will help no one if different senior-level executives are each heading in their own direction rather than being a united force. This is a recipe for driving in circles rather than forward.

Like with the internet, the marketplace will continue to march along a path of ongoing upgrades in technology and ability. That means execs need to stay plugged-in in to stay with the current and ever-changing AI growth wave.

As I consult with a wide variety of companies, there are several who are striking gold. Whether that is long-term or short-term is the next question. The vast majority are trying their best and want to be a leader in this new AI space, but they simply have not been riding the growth wave yet.

So much time and money are being spent trying to get each company onto the moving change wave. Unfortunately, there are no single sources of advice and expertise. If one company has a marketing executive, the vast majority do not.

That being said, as we move forward, just like with the internet and broadband, expertise will be developed. In the meantime, now is the time to jump in and splash around. Get your feet wet. Don’t let fear and uncertainty keep you from becoming a player in tomorrow’s AI world.

Early adopters vs. fast followers with AI

Remember, there are two categories of companies. One is early adopters, the other is fast followers.

The early adopters jump in first. There is no growth path to follow, so they cut their way through the bush and create their own new path. These are the companies that take the arrows because they go against the grain we are all used to.

The fast followers come next. After the new path is cut, they enter and grow. They don’t control the direction the industry will follow like the early adopters do. However, they are often just as successful.

Let me give you an example from the world of wireless. AT&T is an early adopter, while Verizon is a fast follower. As you know, both are big, powerful competitors. While AT&T cut their way through the jungle, Verizon followed that path with their growth strategy.

This will take place with AI as well. Today, AI is like the internet in the 1990s. We only think we know all about it. It will continue to change going forward.

Successful AI growth strategies

There is no one single AI strategy that every company will use. There are many different ones. In that world, some corporate leaders will accelerate and grow while others will struggle.

In the world of AI, the make-up of the senior-level executives will be tested. The winners and losers have yet to be discovered since AI marketing is so new.

Now is not the time to ignore the fastest growing and most instrumental new technology since the invention of the Internet. Jump in and test out this new marketplace. Then, you can determine if you will be an early adopter or a fast follower. By doing so you will also be developing the right AI strategy for you, your companies, your customers, workers and investors.

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