For all the breathless talk of generative AI revolutionising marketing, the reality is far less dazzling. According to a new survey by Gartner, more than a quarter of marketing organisations are still sitting on the sidelines. Twenty-seven per cent of chief marketing officers (CMOs) admit their teams have “limited or no GenAI adoption” within their marketing campaigns—proof that for many, the generative AI buzz hasn’t translated into action, let alone returns.

Gartner’s survey of 418 marketing leaders, conducted between July and September 2024, reveals a stark divide: While some organisations have plunged headfirst into GenAI adoption, others remain cautious, watching from a safe distance. But it’s not all a tale of unfulfilled promises.

“Many believe GenAI will transform marketing, but despite the hype, many CMOs feel that their GenAI investments have yet to pay off,” said Suzanne Schwartz, Senior Director Analyst in the Gartner Marketing Practice.

Still, there are glimmers of success. Nearly 47 per cent of respondents report significant benefits from using GenAI for evaluation and reporting in their campaigns. It's a sign that while the creative potential of GenAI may be overstated, its analytical edge is proving more immediately valuable.

Speaking on a podcast as the study was in market, Schwartz stressed the importance of understanding the importance of strategy over technology.

"At the beginning, you need a good marketing strategy, then you need to figure out how to use this technology. But more importantly, it's about having understanding and guidelines about what you can and can't do for your organisation, and what your marketers can and can't do for your organisation with this technology," she said.

When Gartner surveyed brand reputation leaders in its Managing Organisational Reputation survey, 55 per cent expressed concerned about the risks associated with generative AI. But at a high level, it's about figuring out how to put generative AI into your overall marketing strategy, said Schwartz.

"It's not about having a separate strategy for it. It's about where you can use it [AI] to be the best marketers and have the best experience for your customers."

Leaders vs. Laggards: A Divide Emerges

According to Gartner, high-performing marketing organisations are racing ahead, integrating GenAI more aggressively than their peers. These frontrunners are 1.3 times more likely to overachieve year-on-year profit growth margins, meeting or exceeding marketing objectives tied to customer acquisition, retention and revenue growth from existing customers.

However, the report leaves one crucial question hanging: Did GenAI play a decisive role in these successes? Or are high performers simply better at marketing—GenAI or no GenAI?

As the gap between leaders and laggards widens for many marketers, any potential payoff remains still a work in progress.

Use cases

For those marketing organisations that have embraced generative AI, the majority are putting it to work where the creative sparks fly. More than three-quarters of GenAI adopters are leveraging it for creative development tasks. Among high-performing organisations, that figure climbs to a striking 84 per cent.

The strategic side of marketing isn’t being left out either. Nearly 48 per cent of organisations use GenAI for strategy development, with high performers nudging that number up to 52 per cent, according to the survey.

“The most successful marketing organisations are leading the way when it comes to GenAI adoption,” said Greg Carlucci, Senior Director Analyst in the Gartner Marketing Practice. “They’re leveraging AI for tasks such as content creation, campaign planning and strategy development in order to optimise campaigns and drive their organisations forward.”

Given the pressure on marketers to boost campaign performance, it’s little wonder they’re pinning hopes on GenAI to deliver results. After all, campaigns and media plans devour 45 per cent of total marketing spend, yet 87 per cent of CMOs confess to encountering campaign performance issues over the past year. Worse still, 45 per cent report they’ve had to terminate campaigns early—sometimes, often, or always—due to underwhelming results.

But not all the blame lands at marketing’s feet. It seems CMOs are contending with resistance from their own executive corridors. Thirty-one per cent of marketing leaders say that finance is the primary impediment to successful campaign execution. Executive leadership and sales aren’t far behind, with each cited by 26 per cent of respondents as roadblocks.

“It’s vital for CMOs to foster connections with their counterparts in finance, sales, and executive leadership in order to reduce barriers to marketing’s success,” said Schwartz. “By using a data-driven approach to decision making, marketing leaders can better communicate their strategy to the C-suite, reducing friction with leaders from other functions.”

While GenAI offers tantalising possibilities for creative breakthroughs and strategic refinement, its promise will only be realised if marketing leaders can bridge internal divides. For now, Gartner's analysis suggests generative AI is a useful tool, but not yet the silver bullet marketers many marketers are hoping for.