How Generative AI Can Help Solve Demand Generation Challenges


By Anna Anisin, founder at DataScience.Salon, overseeing community and business development.

In today’s fast-paced business environment, mastering demand generation is critical for outpacing competitors. However, as companies strive to attract, engage and convert prospects into loyal customers, traditional methods may fall short. Moreover, with increasing business complexity and competition, demand generation has become challenging. This is where the power of generative AI comes into play.

According to recent statistics, 56% of United States workers surveyed already use GenAI, with 75% of GenAI users specifically seeking to automate tasks and improve work communications. GenAI has also taken the marketing world by storm. Research by Salesforce indicates that 65% of GenAI users are Millennials and Gen-Z.

Here’s how GenAI can help leaders tackle challenges, optimize demand-generation strategies, adapt to changing market conditions and outsmart competitors.

Defining AI-Enhanced Demand Generation

AI-enhanced demand generation is the use of artificial intelligence to optimize and streamline demand for products or services. It involves using machine learning algorithms and data analytics to:

• Understand consumer behavior. AI analyzes vast amounts of data to comprehend consumer preferences, habits and purchasing patterns.

• Predict trends. AI can forecast market trends by processing large datasets, helping businesses anticipate demand and consumer needs.

• Personalize marketing efforts. AI enables the creation of highly targeted and personalized marketing campaigns. It can customize content, ads and communication to specific audiences to help increase engagement and conversion rates.

• Optimize strategies. AI can refine marketing strategies in real time, helping to ensure the most effective approaches are being used.

Challenges To Overcome

Demand generation challenges have evolved over the years due to several factors, including changing consumer behavior, increasing digital noise and shifting market dynamics. Let’s get into the details and discuss some possible solutions.

1. Demand generation is about relationships.

One of the fundamental aspects of demand generation is building and nurturing relationships with potential customers. This is critical because demand generation is about creating awareness and interest in products and services. By leveraging AI, businesses can achieve better-tailored communication that serves the target audience. GenAI can also help create more inclusive content by, for example, providing automated audio versions of the initial content. This not only expedites communication but also improves engagement with the target audience.

2. Demand generation requires long sales funnels.

With demand generation, businesses engage potential customers through extended and multistage sales funnels. The sales funnel is a structured journey that guides potential customers through various phases from awareness to purchase. Maintaining customer attention at every phase is essential to ensure a seamless and compelling progression toward conversion.

In a world where businesses must fight to capture even one second of attention, guiding prospects through a lengthy process can be counterproductive. Generative AI can address this challenge by assisting businesses in creating high-quality and relevant content more efficiently. More compelling marketing materials, product descriptions and personalized content can help keep prospects engaged. Additionally, AI can aid in brainstorming and optimizing various aspects of the sales funnel, thus accelerating the conversion process.

3. Demand generation involves complicated analytics.

In demand generation, navigating complex buying funnels with multiple touchpoints and intricate analytics presents a formidable challenge. The very nature of these processes demands a deep understanding of the data generated at various stages, which can often seem like deciphering a code. GenAI can help solve this challenge by providing advanced analytics, which includes data segmentation and offers a valuable context within the delivered reports and segments. Generative AI can also advise on how best to handle priorities, making decisions easier.

4. Demand generation uses lengthy A/B testing.

In demand generation, A/B testing is a critical tool for success. However, the challenge lies in the need to create various unique versions for testing. This can be a relentless task, demanding constant creativity and resources. Generative AI provides solutions through automation. It can speed up the process of creating several copies of customized content, which reduces marketers’ effort and helps ensure marketing initiatives are tailored to the changing consumers’ behavior and preferences.

Other Considerations

It’s important to remember that generative AI still requires supervision and wise adoption. Its usage should enhance human creative capabilities, not replace them. Therefore, it requires your active involvement as the human in the loop.

One example? While the rise of generative AI can be helpful in generating content, it can also lead to the inundation of content, whereby audiences feel overwhelmed with too many competing messages. Therefore, leaders need to take a nuanced approach to generative AI. Rather than viewing it as a stand-alone content creation engine, marketers must harness it as an augmentation tool. Its role should complement and enhance human creativity rather than replace it entirely. Maintaining a human touch is paramount to striking the right balance and preserving the authenticity and uniqueness of content.

In conclusion, generative AI can be a game changer in demand generation. Strategic use of AI offers solutions for effectively managing customer relationships and navigating through lengthy sales funnels. It also provides solutions for regulating content flow, streamlining analytics and optimizing A/B testing. I encourage you to experiment with the ways GenAI addresses the multifaceted challenges of sales and marketing.


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