Embracing AI in Marketing: A Lesson on Strategy and Value

In times of economic pressure and technological transformation, marketers face a familiar dilemma: how to drive cost-efficiencies (and even cut costs) while also investing strategically. The rise of AI in marketing currently presents a similar conundrum.  Should businesses use AI primarily to drive speed and efficiency, trimming budgets and automating low-value tasks?  Or should they harness AI to elevate quality, create value and outpace competitors in a rapidly evolving marketplace?

Lessons from Recessions: What 2009 and 2020 Taught Marketers

This strategic choice mirrors the decisions marketers confront during times of global recession – 2008-09 and the 2020 covid pandemic being two recent examples of such periods.  During these times, many companies responded by slashing marketing budgets, pulling back on campaigns and going dark in the market.  It seemed like a safe way to preserve capital – but it came at a cost.

Meanwhile, forward-thinking brands took the opposite approach.  They saw the downturn not just as a threat but as a unique window of opportunity.  With lower media costs, reduced competition for attention and shifting consumer behaviour, these marketers doubled down on brand building and customer engagement.  They maintained or even increased their investment, confident that short-term pain would bring long-term gain.

History validated their instincts.  Studies in the years following the recession, such as the research carried out by Peter Field, consistently showed that companies which sustained or increased marketing spend emerged stronger, with larger market shares and improved brand equity.  The temporary lull gave them the space to innovate, tell compelling stories and build emotional connections at a time when many others were silent.

AI: The Next Inflection Point for Modern Marketers

Fast forward to 2025 and marketers once again face a choice – but this time the catalyst is not a financial crisis but rather a technological inflection point.  AI is transforming every aspect of marketing, from content creation and data analysis to personalisation and campaign optimisation.  And just like in times of recession, the question is not whether to use AI, but how.

Some marketers are racing to adopt AI for its efficiency gains alone – automating copy, churning out social content and reducing headcount.  They are treating AI as a cost-cutting tool, much like those who slashed ad budgets in 2009.  During our research for Observatory International’s recent whitepaper ‘The New Creative Code — How GenAI is Reshaping Industry Giants’, we heard some extreme tales from the major agency holding groups including clients rejecting invoices unless they were heavily discounted to reflect AI usage in their processes.  This approach may deliver short-term relief, but it risks commoditisation, brand erosion and undifferentiated customer experiences.

Others, however, are using AI to enhance their creative edge.  They’re deploying AI to uncover deeper insights, personalise messaging at scale and build richer, more engaging experiences.  For them, AI is not a substitute for human creativity but a partner in elevating it.  Just as the bold marketers of 2009 saw opportunity in adversity, these leaders recognise that AI can help deliver greater value to customers – not just faster results.

Final Thought: Strategy Determines AI’s True Impact

The takeaway is clear: AI, like any tool, reflects the strategy behind its use.  The marketers who see AI as a lever for innovation, creativity and customer intimacy will build long-term competitive advantage.  Those who use it solely to cut corners may find themselves left behind when the noise clears.

In moments of change – whether economic or technological – what distinguishes leaders from laggards is not the presence of disruption but the response to it.  The 2009 recession rewarded those who stayed the course and invested wisely.  AI will reward those who think long-term, use it to create differentiated value and remember that in marketing, the ultimate goal is not efficiency but effective impact.