By leveraging AI technologies, firms can respond more quickly to changing stakeholder preferences.
As businesses navigate increasingly dynamic markets, artificial intelligence (AI) is emerging not just as a tool, but as a strategic driver of marketing agility and firm performance.
New research by Edith Cowan University (ECU) has found that by leveraging AI technologies, firms can become AI ready and respond more quickly to changing stakeholder preferences, optimise campaigns in real time, and deliver highly personalised experiences that strengthen stakeholder engagement.
Professor of Marketing and Service Science, Sanjit Roy, noted that companies integrating AI into their marketing strategies, rather than using it solely for isolated tasks, can significantly enhance overall performance, positioning themselves for sustained competitive advantage in an ever-evolving business landscape.
"The adoption of AI is no longer a choice for business, but how you adapt to its use will be the greatest determinant of success," Professor Roy said.
"You may love it, or you may hate it, but you can't ignore it."
The research shows that AI technologies offer a plethora of opportunities for firms to deepen stakeholder engagement through personalised interactions, enhanced communication channels, real-time feedback analysis and improved decision-making.
Rather than merely replacing outdated systems, AI can act as a strategic enabler that helps firms overcome inefficiencies and reconfigure business models to navigate disruption with greater agility and responsiveness to market changes. AI plays the dual role of (1) being a distinct organisational capability and (2) an enabler of organisational dynamic capabilities in terms of sensing, seizing, and transforming organisational resources and strengthening stakeholder relationships.
"Such responsiveness is a critical determinant of business success, particularly in dynamic and technologically disrupted environments. Firms that fail to adapt quickly to market shifts often face competitive disadvantages, revenue loss or strategic misalignment," Professor Roy said.
The research findings provide compelling evidence that AI-based stakeholder engagement significantly boosts a firm's marketing agility, which in turn enhances overall performance.
"While we initially found mixed results regarding whether technological turbulence moderates the link between AI-driven engagement and marketing agility, a clear pattern ultimately emerged: in highly disruptive, fast-changing technological environments, these relationships become even stronger.
"In other words, the more turbulent the market is due to technological disruptions, the more powerfully AI-enabled engagement supports firms in remaining agile and competitive," Professor Roy said.
