Why are CMOs Still Holding Back on AI Marketing?

TL;DR – What You Need to Know in 30 Seconds

1. Reluctant 27%: A significant chunk of CMOs have minimal or zero use of AI marketing, citing costs and ethical concerns.
2. High Performers: Businesses that exceed profit goals are widely using generative AI for both creative work and strategy.
3. Cautious Optimism: While some see major wins in campaign analytics, others struggle to find benefits in cost reduction and customer service.
4. Risk of Lagging: Experts warn that slow adoption could leave traditional marketers scrambling to catch up in a rapidly evolving field.

Why Are CMOs Still Holding Back on Generative AI Marketing?

In a world where even your local bakery is dabbling with AI-driven marketing campaigns, it seems a little baffling that some Chief Marketing Officers (CMOs) are still on the fence about generative artificial intelligence (AI). The hype machine is running full tilt, with countless headlines promising a revolution in how we strategise and create marketing materials. And yet, according to Gartner’s latest research, 27% of CMOs report no or limited adoption of generative AI in their teams. What’s going on, and should these marketing chiefs be worried? Let’s explore.

The Reluctant Third

Let’s start with the eye-catching number that’s got tongues wagging across the marketing landscape: 27% of CMOs either aren’t using generative AI at all or are only dabbling on the periphery. Considering we’re several years into the generative AI hype wave, you’d think that figure would be lower. After all, we hear success stories about AI-generated ad campaigns or chatbots that transform customer service on a nearly daily basis. So why the reluctance?

One big reason often cited is the cost. While there are open-source options, enterprise-level tools (complete with robust support and advanced data security features) don’t come cheap. Then, there’s also the legal and ethical minefield: some executives worry about brand risk or data security concerns. If your marketing AI is scraping questionable sources for content, or if it accidentally pinches trademarked materials, the cost could be more than just monetary—it might damage your brand’s reputation.

High Performers Blaze the Trail

If you think generative AI is all hype, you might want to pay attention to the marketing teams who are actually succeeding with it. According to Gartner’s findings, 84% of high performers—businesses that exceed their annual profit growth and marketing goals—are leveraging generative AI for creative development, and 52% are putting it towards strategy development.

These stats matter because they highlight a gap between those who’ve embraced the AI revolution and those who are dragging their feet. High-performing organisations see “creative development” as the perfect playground for generative AI: from drafting copy to brainstorming design ideas, the tech is boosting the volume and diversity of creative work. Strategy development is also getting an AI-powered makeover, with marketers crunching campaign data in record time to find winning formulas.

As Gartner notes, CMOs who ignore the technology “are in a position of greater risk.” It’s not just about keeping up with the Joneses—it’s about leveraging a tool that can genuinely make marketing campaigns more efficient, more targeted, and possibly even more profitable.

Not Everyone Sees the Glitter of AI Marketing

Interestingly, the Gartner research also shows that generative AI’s benefits aren’t universally acknowledged. Over a quarter of CMOs surveyed reported little to no benefit in areas like cost reduction, customer service, and scalability. That’s a bit of a head-scratcher when many of us have been sold the dream that AI would turn marketing teams into lean, mean campaigning machines.

Part of the mismatch might come from inflated expectations. Some CMOs might have imagined generative AI swooping in like a marketing superhero, solving every challenge overnight. As a result, when the reality—training, experimenting, refining—sets in, disappointment can ensue.

It’s also worth noting that 6% of CMOs have no usage of generative AI at all, whereas 21% have only waded into the shallow end. Yet on the other side of the spectrum, around 15% see extremely broad use among their teams. That discrepancy screams caution from some corners and gung-ho enthusiasm from others.

Disruptors and Doubts

Remember those corporate AI solutions that come with hefty price tags? Well, the pace of AI evolution has accelerated massively, especially in Asia. Enter disruptive companies like China’s DeepSeek, which have introduced more affordable—or at least more flexible—versions of AI. They’ve changed the conversation around pricing, data security, and the potential of open-source models.

But not everyone is convinced. A survey by The Wall Street Journal found 21% of IT leaders aren’t currently using AI agents, with reliability being a major sticking point. While that might sound like a small number, keep in mind that these are the folks who sign off on the tech stack. If they harbour doubts, the marketing team’s AI ambitions could remain tethered to a cautionary anchor.

Where Are the Gains?

Despite the reluctance from some, 47% of those who have embraced generative AI are seeing a large benefit in tasks such as campaign evaluation and reporting. This indicates that when deployed properly, AI can absolutely streamline some parts of the marketing machine. Whether it’s quicker insight generation from data analytics or more accurate audience segmentation for targeted campaigns, the gains can’t be ignored.

So, if you find yourself in that 27% who are holding out, consider this: the competitive edge might be slipping away to those high performers who are pairing human creativity with AI efficiency.

Balancing Caution and Curiosity

Let’s be honest: any new technology comes with risks. Data security, ethical boundaries, and steep pricing are real concerns. The key might lie in adopting a balanced approach: start with smaller, safer implementations—like using AI for ad copy testing or initial design mock-ups—before rolling it out to high-stakes areas.

It’s a bit like learning to swim: you wouldn’t jump off the high dive if you’ve never been in the pool before, but you wouldn’t stand on the edge of the pool forever, either.

The Final Word: Ready to Jump In or Watch from the Sidelines?

So, is generative AI in marketing a passing fad or the future of the industry? The data suggests it’s much more than a flash in the pan. High performers are already capitalising on AI’s creative and strategic potential.

The question is: will the sceptics catch up before they’re left behind entirely?

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