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AI has been around for a long time in Malaysia, but it has only recently become a massive trend. AI has always worked in the background, fueling the process for countless financial service providers who didn’t even realise how much AI they used in their day-to-day lives. Advancements in automation and the buzz around gimmicks such as generative AI have certainly brought its strengths (and potential pitfalls) to the forefront.
One industry in Malaysia that has readily accepted AI into its workflow is digital marketing. Given the adjective, generative AI and digital marketing are a match made in cyberheaven. However, the hype around AI has also diluted the conversation with bad actors and trendhoppers looking to make some quick cash. This is especially prevalent in the financial sector, where AI can quickly become a buzzword instead of a genuine innovation.
That’s why it’s important to know what AI can accomplish.
What Can AI Do For Us?
Artificial Intelligence (AI) and Machine Learning (ML) are no longer futuristic concepts—they are actively transforming industries in Malaysia, including financial services and digital marketing. But with so much hype surrounding AI, it’s easy to lose sight of what this technology actually does and how they deliver tangible value. Here are some examples that have helped to innovate online businesses as we know it:
1. Personalised Customer Experiences
AI enables financial service providers in Malaysia to deliver highly personalised experiences by analysing vast amounts of customer data.
For example:
- Tailored Recommendations: Analytics algorithms analyse the spending habits, investment preferences, and financial goals of consumers to recommend personalised products.
- Dynamic Content: In digital marketing, generative AI-powered tools like chatbots and email marketing platforms use customer data to deliver personalised messages and offers in real-time.
2. Fraud Detection and Prevention
Financial institutions in Malaysia are leveraging AI to combat fraud and protect consumers. Machine learning models can:
- Analyse Transaction Patterns: Detect unusual activity, such as large withdrawals or purchases in unfamiliar locations, and flag them for review.
- Predict Fraudulent Behaviour: Identify potential fraud before it occurs by analysing historical data and recognising patterns associated with fraudulent transactions.
- Reduce False Positives: Improve the accuracy of fraud detection systems, minimising disruptions for legitimate customers.
3. Automated Customer Support
AI-powered chatbots and virtual assistants are revolutionising customer service in the financial sector. These tools can:
- Handle Routine Queries: Answer frequently asked questions about account balances, transaction histories, or payment due dates.
- Provide 24/7 Support: Offer round-the-clock assistance, reducing wait times and improving customer satisfaction.
- Escalate Complex Issues: Seamlessly transfer customers to human agents when necessary, ensuring a smooth and efficient experience.
4. Predictive Analytics for Better Decision-Making
Generative AI and ML excel at analysing large datasets to uncover insights and predict future trends. For financial services in Malaysia, this capability is used to:
- Assess Credit Risk: Evaluate borrowers’ creditworthiness more accurately by analysing alternative data sources, such as utility payments or social media activity.
- Optimise Investment Strategies: Provide data-driven recommendations for portfolio management, helping investors make informed decisions.
- Forecast Market Trends: Identify emerging opportunities and risks through data analysis.
5. Enhanced Marketing Campaigns
AI is transforming digital marketing by enabling more targeted and efficient campaigns. Key applications include:
- Audience Segmentation: Use AI to analyse customer data and segment audiences based on demographics, behaviour, and preferences.
- Ad Targeting: Deliver highly relevant ads to the right audience at the right time, maximising ROI.
- Performance Optimisation: Continuously monitor and optimise campaigns in real-time, adjusting strategies based on performance data analysis.
Digital Marketing And The Evolution of AI in Malaysia
Long before terms like digital marketing became vogue, the core concepts of modern AI were already taking root in marketing. Game theory, AKA, the mathematics of decision-making, has long been a marketing staple in Malaysia. After all, sales have always been a numbers game, and increasing the chances of consumers choosing your product over others is innately appealing.
Back then, game theory was crunched with numbers and vast amounts of information collected on paper by eagle-eyed accountants. However, with the growing needs of fast-growing financial service providers, an upgrade to automation has become necessary.
By the 1990s, computers had finally entered the corporate world en masse. The creation of data warehouses, home to unfathomably large datasets at the time, would soon become the foundation for modern marketing in Malaysia. Even so, it wouldn’t be until the 2000s that researchers began making headway with industry-changing AI algorithms.
Big data is now the name of the game, and generative AI has the power to interpret that raw information into actionable marketing campaigns.
The Benefits of AI for Digital Marketing
Digital marketing continues to evolve thanks to the help of AI, and those benefits speak for themselves. From the automation of incredibly tedious tasks to providing critical data analysis for major campaign choices, these benefits showcase why generative AI is so essential for digital marketing in Malaysia.
Workflow Optimisation
The most immediate benefit of utilising AI is through automation. Often, there will be low-complexity yet time-consuming tasks that become huge time sinks for certain professions. HR professionals would have to pull double duty and assist accountants with managing payroll manually, for example.
However, with the help of AI automation programs, financial service providers can enhance operational efficiency, which is especially useful for fast-moving companies. Combined with external support, AI can help them streamline workflows, reduce errors, and more, ultimately allowing teams to focus on higher-value tasks and strategic initiatives.
Data-Driven Decisions
Growth analytics are a quickly growing subset of data analysis in digital marketing. Generative AI algorithms are used by innovative marketers to identify purchasing patterns and capitalise on lucrative opportunities. This is especially useful for companies in an “experimental” phase, where they still can’t quite decide what their staple products will be.
In finance, it can be used to analyse customers’ spending habits and pinpoint improvement areas. If there are a lot of complaints about speed in processing transactions, for instance, it may be time to start streamlining things.
Template Generation
A sort of “evolution” for automation, some marketers may find themselves having a bit of writer’s block. While it’s tempting to use generative AI and leave it at that, it’s a lazy and inefficient way to use AI for marketing. An even better use is AI for creating the bones of a potentially great idea.
Say a young marketer in Malaysia has a great concept but no concrete action plan. AI could generate a plan that kickstarts their brain. The template is undoubtedly not going to be good enough for a final campaign. However, that wasn’t the goal. What AI has done is fast-track the brainstorming process, leaving creatives the freedom to start crafting their campaigns and target advertisements.
Customer Personalisation
With consent from the customer, financial service providers can utilise generative AI to personalise recommendations and make it easier for them to find what they’re looking for. With optimised search, AI can create a list of potentially interesting products. For example, a fresh graduate looking for budget PC parts on their first build.
Initially, the algorithm will have to analyse customer behaviours. Based on that item and their previous buying power, the AI will then recommend an affordable product with great reviews.
Final Thoughts
Digital marketing will never stop innovating for as long as technology keeps marching. Those cyberpunk futures certainly give plenty of marketing ideas. That said, it’s important to understand that marketing ethics should not be sacrificed for mere profit.
As generative AI constantly gets used for crypto scams and startups that promise the world and deliver naught but despair, marketers have a moral responsibility. AI is a tool, and just like any tool, its purpose is up to the user. Marketers should be aware of that when utilising its many benefits.
At Kode Digital, we specialise in many forms of progressive digital marketing in Malaysia, such as SEO and AI integration, in order to keep up with the latest trends and stay ahead of the competition. Contact us today to learn about our SEO strategies and suggestions.
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