How Is AI Transforming Marketing Automation?

How Is AI Transforming Marketing Automation?
Article by David Jenkin
Last Updated: June 11, 2025

There’s a revolution underway in the world of marketing automation, driven by AI’s ability to personalize at scale, predict customer behavior, and optimize campaigns in real time like never before. 

AI in B2B: Key Findings

Carvana used AI to create 1.3 million personalized videos, boosting engagement. 
Starbucks’ AI platform, Deep Brew, increased visit frequency and spend by forecasting customer needs based on behavior, time of day, and weather. 
Crabtree & Evelyn saw a 30% ROAS lift in under two months using AI to automate and optimize ad performance (without raising spend). 
Gartner estimates that roughly 30% of outbound marketing messages are now AI-generated, a sharp rise from just 2% in 2022. 

The New Era of Smarter, Faster Marketing 

No longer limited to rule-based triggers or broad segmentation, marketers are now harnessing AI to deliver hyper-relevant messages, automate content creation, and make smarter, faster decisions across channels. 

Read on to discover how leading brands are using AI to redefine marketing automation, and how you can, too. 

 

 

 

 

Hyper-Personalization at Scale 

One of the most immediate and impactful ways AI is transforming marketing automation is through hyper-personalization at scale. AI enables dynamic content personalization that goes beyond basic demographic segmentation. It can create individualized content journeys for each customer by analyzing individual user data including:  

  • Reading habits 
  • Browsing behavior 
  • Viewing history 
  • Sentiment   

This kind of personalization was once impossible at scale. Now, algorithms can determine the right content for the right person at the right time across thousands or millions of users. The result is substantial performance gains with 10–15% revenue lifts 

Personalization traditionally meant sticking someone’s name in an email subject line, Ben Adams, co-founder of Marzipan Media, points out. To embrace the dynamic personalization that AI tools now make possible, the key shift brands need to make is “from static ‘set-and-forget’ campaigns to adaptive content ecosystems — where AI does the listening, learning and adjusting on the fly”. 

Case Study: Carvana’s “Joyride” Personalized Video Campaign 

In 2023, online auto retailer Carvana marked its one-millionth car sale by delivering a hyper-personalized experience to each customer. Partnering with an AI-powered creative platform, Carvana generated 1.3 million unique “Joyride” videos, one for every buyer.  

Each video featured personalized data (name, car model, purchase date, location) and contextual details, like relevant news or cultural events from the purchase day, to create a deeply individual narrative. The goal was to give customers a shareable keepsake of “the day they met their car.”  

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Predictive Engagement 

One of AI’s most powerful capabilities is predicting what users will do next. These predictive insights allow marketers to move from reactive to proactive engagement. By analyzing engagement patterns and historical data, AI can forecast key behaviors, such as:  

  • When a reader is likely to churn (unsubscribe or stop visiting)  
  • Which type of content they’re likely to click on next 
  • What time of day they are most active 

The system can automatically trigger a personalized offer, a win-back email, a targeted ad, or a push notification to re-capture the user’s interest before they drop off. Likewise, predictive lead scoring can tell sales teams which prospects are most likely to convert, so they can prioritize those. 

Case Study: Starbucks’ Deep Brew Anticipates Customer Needs 

Source: Microsoft

Starbucks uses its AI platform, Deep Brew, to deliver predictive, personalized customer experiences across 25,000+ stores. By analyzing data like purchase history, time of day, weather, and store traffic, Deep Brew forecasts what each customer is likely to want (and when).  

These insights power personalized app suggestions, timely promotions (like iced coffee on a warm afternoon), and even optimize in-store operations. The result? More visits, more spending, and over 30% of US orders now placed via mobile. 

Automated Content Creation 

Generative AI tools help by creating marketing content, from drafting email subject lines and social media posts to writing product descriptions. It affords a major productivity boost, with AI handling the first draft or summarization of tasks. 

"The biggest disruption we are seeing with AI currently is the volume of content generation it can create in order to provide a more personalized journey for the customer,” says Katie Holt, founder of Smart Girl Digital. She adds that brands need to be more intentional about crafting their strategy for these hyper-personalized journeys by teaching AI with structured data sets and brand documentation. 

That’s why Gartner estimates about 30% of outbound marketing messages are AI-generated, a massive increase from just 2% in 2022.  

What used to take Venture Media founder and CEO  Sam Hajighasem’s team days now takes hours and he says the quality has improved. That’s because “the team isn’t stuck doing repetitive tasks, they can focus on fine-tuning the content and making sure everything hits the right tone,” he says. The end result, he adds, is content that feels personal and polished, and a creative team that’s energized rather than burned out. 

Case Study: CarMax Automates Content Creation Driving SEO and Engagement 

In 2022, used-car retailer CarMax used OpenAI’s GPT-3 model via Microsoft’s Azure OpenAI Service to automate the creation of text summaries on its website’s car research pages. The AI provided shoppers with concise, meaningful descriptions while boosting those pages’ search engine rankings 

This accomplished in hours what would have taken a team of writers years to do manually and led to a spike in page views along with higher customer engagement, ultimately contributing to substantial business growth. 

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Real-Time Trend & Sentiment Analysis 

In the age of social media, public sentiment can change overnight, and trending topics come and go in a flash. AI gives marketers the tools to keep up.  

Advanced algorithms can continuously scan social networks, forums, comment sections, and news sites to gauge audience sentiment and detect emerging trends or conversations relevant to the brand. Marketing automation platforms armed with these AI insights can then adjust content calendars or trigger responsive campaigns immediately. 

This strengthens audience trust, customers feel the brand “gets” what’s relevant in the moment, and positions brands as agile, in-touch players in their market. 

Case Study: Barbie Movie Monitors Social Sentiment for Agile Marketing 

Source: The Wrap

When Mattel rolled out the Barbie movie marketing in 2023, the brand’s team leveraged AI-powered social listening to stay tapped into trends and sentiments from the audience in real-time. Using an AI-driven analytics tool, Barbie’s marketers monitored millions of online mentions to get instant alerts on sentiment shifts and emerging topics.   

Armed with these insights, the team was able to pivot their strategy on the fly, addressing criticisms proactively and doubling down on the content fans loved.  

Smarter Campaign Optimization 

Source: PostHog

Traditional A/B testing in marketing is effective but time-consuming and limited in scope. AI-powered automation platforms, on the other hand, use multivariate testing, simultaneously evaluating multiple variables and their combinations. Together with machine learning, these platforms continuously optimize campaign elements like email subject lines, send times, images, and call-to-action buttons. 

The AI can juggle countless variations and learn which combinations perform best for which audience segments, all in real-time. This leads to:  

Case Study: Crabtree & Evelyn Boosts ROI with AI-Driven Ad Optimization 

Source: Crabtree & Evelyn

Facing stagnating digital ad returns, luxury beauty brand Crabtree & Evelyn turned to AI platform Albert to optimize social media campaigns. The AI rapidly tested and adjusted ad elements (audiences, creatives, placements) reallocating budget in real time to top performers. 

In under two months, this automation drove a 30% boost in return on ad spend (ROAS) with no added budget. The AI uncovered new audiences and creative insights, enabling scalable prospecting, retargeting, and retention. 

Media Buying and Ad Spend Optimization 

Artificial Intelligence (AI) revolutionizes media buying by enabling data-driven decisions that optimize ad spend across multiple channels. Through advanced algorithms and machine learning, AI analyzes vast datasets in real-time to identify the most effective strategies for ad placements, budgeting, and audience targeting. Here’s how.  

  • Smarter allocation, not just automation: Beyond automating bids, AI enables real-time budget shifts based on emerging signals like audience behavior or seasonal trends, maximizing impact without added spend. 
  • Foresight that adapts, not just predicts: While predictive analytics are standard, the differentiator lies in how AI responds. The real advantage is in adaptation: adjusting placements, formats, or creative combinations in response to forecasted outcomes before performance dips. 
  • Ethical signals, not just data: AI can help detect not only what performs well, but where risks may lie, such as overexposure to narrow segments or unintentional bias in reach. When paired with brand oversight, this promotes more inclusive and context-sensitive media strategies. 

Case Study: AI-Driven Ad Optimization Boosts Conversions by Over 300% 

Source: eBay

ARCTIC, a global manufacturer of PC cooling components, partnered with Adspert to optimize its eBay Promoted Listings Advanced campaigns using AI. The platform automated nearly two million bid adjustments over 1.5 years, saving 2,736 hours of manual work and providing detailed analytics for smarter budgeting and keyword decisions.  

Most notably, ARCTIC saw a 313% increase in conversions on eBay and a 135% increase on eBay.de after implementing AI-driven bid optimization. 

Challenges and Considerations for Using AI in Marketing Automation 

Marketing automation is more efficient and effective than ever thanks to AI, but its implementation is not without challenges. Ethical, effective, and compliant use of AI technologies take a bit of navigation.  

Below are key areas to focus on: 

  1. Privacy and compliance
  2. Content oversight
  3. Ethical Use 

1. Privacy and Compliance

AI systems often process vast amounts of personal data, raising concerns about privacy and compliance with regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). Organizations must ensure that AI applications adhere to these laws to avoid legal repercussions and maintain consumer trust. 

Steps to take: 

  • Collect only the data necessary for specific marketing purposes. 
  • Clearly communicate to consumers how their data is used in AI-driven processes. 
  • Implement systems to obtain and manage user consent for data processing. 
  • Conduct periodic reviews of AI systems to ensure ongoing compliance with privacy regulations. 

2. Content Oversight

AI-generated content can sometimes produce outputs that are off-brand, misleading, or inappropriate. Without proper oversight, such content can harm a brand's reputation and customer relationships. 

As Adams says, “AI won't think for you — but it will think with you, at scale, if you know how to guide it. Left unchecked it can still get a bit spicy with the hypotheticals.” 

Steps to take: 

  • Establish a review process where human editors assess AI-generated content before publication. 
  • Train AI models using comprehensive brand guidelines to align outputs with brand voice and messaging. 
  • Implement mechanisms for continuous feedback to refine AI content generation over time. 

3. Ethical Use

AI systems can inadvertently perpetuate biases present in training data, leading to unfair or discriminatory outcomes. Ethical considerations are paramount to ensure AI applications do not harm individuals or groups. 

Steps to take: 

  • Regularly evaluate AI models for potential biases and take corrective actions as needed. 
  • Use diverse and representative data to train AI models, minimizing the risk of biased outputs. 
  • Form internal committees to oversee AI ethics and guide responsible AI practices within the organization. 
  • AI in Marketing Automation: Final Words 

Leaders who act now will gain faster, more precise execution, scalable personalization that drives loyalty, smarter resource use, reduced operational drag, and a future-proof foundation for innovation. 

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AI in Marketing Automation FAQs 

1. How does AI differ from traditional marketing automation?

Traditional automation uses fixed rules (e.g., send an email after cart abandonment), while AI adapts in real time by learning from data. It can personalize timing, content, and channels based on individual behavior—making it proactive and dynamic, unlike the reactive nature of rule-based systems. 

2. Is AI marketing only viable for large enterprises?

No. AI tools are now accessible to businesses of all sizes. Many platforms offer affordable, user-friendly solutions designed for small and mid-sized companies. The key is to start with clear goals and choose tools that fit your needs and budget. 

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