Small business owners, don't waste your time on AI-generated marketing! So far, this new technology comes with many issues. Instead, turn to a marketing agency with real people who produce original content. Significant Investments and Larger Disappointments According to Goldman Sachs’ report “Gen AI: Too Much Spend, Too Little Benefit?” tech giants, utilities, and other companies will invest an estimated one trillion dollars throughout the next few years on AI infrastructure in various sectors. Unfortunately, at this point, there is little to show for it. Furthermore, Jim Cavello doesn't believe that AI is designed to solve the complex issues that investors are counting on. In all areas of the business world, tasks require mental work AND real-world interaction. AI is unable to improve the latter anytime soon materially. Sachs’ report states, “The human brain is 10,000 times more effective per unit of power in performing cognitive tasks vs. generative AI.” Writer Alex Roddie believes that if we exclusively depend on AI, content will become rigid without creativity or originality. Acemoglu senses that AI won't be able to translate open-ended tasks with more than one correct answer. Cavello predicts that AI won't make employees smarter. Rather than empowering them to find quality information, it will encourage them to find information faster. Roddie pointed out that there's already so much written content; there's no need to produce it faster.
AI has a history of making incorrect suggestions for ads and message prompts, whether grammatical errors, inaccurate prices, irrelevant content, or more. So, if employees don't take time to pay attention, they can release content that will harm their brand or confuse consumers. Here are some examples of significant problems that occurred with big companies:
An MIT professor, Daron Acemoglu, said, “Technology that has the potential to provide good information can also provide bad information and be misused for nefarious purposes.” Is AI in the workplace efficient? It may not reduce working time because, in modern Wall Street culture, you're expected to work 80-100 hours a week, no matter what improvements you make. Acemoglu believes that some of the previously mentioned investments will go to waste. The time it would take them to pay off is uncertain. Furthermore, he predicts that in the next ten years, AI will only increase 0.5% of productivity in the U.S. and impact less than 5% of all tasks. Some experts feel that too much optimism can significantly lead to premature use of AI since some corners of tech adoption haven't improved in the last ten years. Some business owners don't know where AI will fit into their processes because they haven't observed the breakthroughs that have been promised. Another question to consider is: Is AI worth the cost? According to Cavello, the costs of AI are so high that they would have to decline dramatically to be affordable. Furthermore, it costs six times more for AI to update historical data in company models than for human employees to do so. If one company can use AI, so can its competitors. So, you won't be able to charge more or increase profit margins, or necessarily save money on manpower or hired services. Lastly, even if AI was developed satisfactorily, the power grid may not be ready. ChatGPT inquiries take ten times as much power as Google searches. It's possible that the U.S. would have to start choosing who receives power. Quality Over Quantity Believe it or not, generative AI may decrease productivity in the office. The Upwork Research Institute published a study that states:
If you choose a marketing agency with authentic people, your content will be unique and reflect genuine intelligence and expertise. You'll be confident you're releasing accurate information that can yield positive results. And given that AI is so far proving to be inefficient, you’ll save time and money on expenses and in-house wages too. So, call STS at 616-881-3753 or fill out our contact form to sign up for marketing services today. Invest in quality marketing working with a firm getting results for their clients for 15 years.
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