Strategic GenAI Integration Is Unlocking Higher ROI for CMOs

Chief marketing officers (CMOs) are going beyond the basics with GenAI to unlock greater value. In October, a record share of CMOs reported very positive ROI from GenAI use. Ninety-eight percent of those reporting very positive ROI cited notable improvements from applying the technology to complex tasks, such as developing product marketing strategies and aligning these with business objectives. CMOs seeking greater organizational alignment in their approach can expect more substantial results from using the technology.

Despite recent progress in better integrating GenAI, many CMOs still need help. Nearly 90% highlight unfamiliarity and skill gaps as critical barriers slowing broader adoption at their firms. Overcoming these challenges is essential for CMOs looking to maximize GenAI’s potential to help maintain their firm’s competitive edge.

These are just some of the findings detailed in “Strategic GenAI Integration is Unlocking Higher ROI for CMOs.” This edition examines how CMOs leverage GenAI for strategic marketing and draws on insights from a survey of 60 CMOs conducted from Oct. 7 to Oct. 17.

• ROI and High-Impact GenAI Applications Need Time
• CMOs Citing GenAI as Crucial for Key Processes
• Barriers to GenAI Adoption Persist
• Read More
• Methodology

ROI and High-Impact GenAI Applications Need Time

ROI increases as CMOs expand GenAI use

In October, 37% of CMOs reported very positive ROI from GenAI, the highest share recorded since March. This figure reflects notable growth from July, when just 8.3% of CMOs reported a positive ROI. Data shows that companies reporting very positive ROI seem to leverage the technology in more ways than other firms. Those with very positive ROI report using the technology for an average of seven tasks. In contrast, those reporting negligible ROI use it for an average of three tasks.

Most experienced CMOs still focus on low- and medium-impact applications like chatbots, data visualizations and employee feedback. However, that also means these simpler GenAI applications have become mere table stakes. More complex applications of GenAI are linked to higher investments and better outcomes, suggesting that strategic and sustained integration drives superior performance.

PYMNTS Intelligence data shows that firms achieving very positive ROI from GenAI explore more impactful uses as they build confidence. The share of CMOs reporting a somewhat positive ROI dropped from 85% in July to 58% in October. The increase in that time from 8% to 37% of CMOs reporting very positive ROI supports the idea that more positive ROI comes with more sophisticated application — not least as the share of CMOs reporting negligible ROI has remained relatively unchanged.

This trend aligns with the broader observation that maturity in adoption pushes companies beyond routine applications into higher-impact strategies that directly influence business results. Firms committed to advancing their GenAI use not only seek to optimize current processes but also position themselves for more complex projects. This approach to using the technology distinguishes high-ROI firms from others that see more limited outcomes.

CMOs Citing GenAI as Crucial for Key Processes

High-ROI firms leverage GenAI for deeper, strategic uses

High-ROI firms prioritize GenAI for high-impact processes that deepen their marketing capabilities. Nearly all CMOs acknowledge the importance of using the technology for customer experience and market research, but those at companies reporting higher ROI find use of the technology for product marketing and performance measurement crucial.

Notably, 98% of CMOs in high-ROI firms rate product marketing, which positions their brand, as highly important. Additionally, 94% of those who use the technology mostly for high-impact applications emphasize marketing analytics and performance measurement, with GenAI helping evaluate the effectiveness of marketing initiatives using KPIs. Just 82% of CMOs with negligible ROI — those arguably using the technology least effectively — consider product marketing a significant GenAI application.

High-ROI firms leverage advanced GenAI tasks to align marketing strategies with business objectives, enabling stronger performance and adaptability. Furthermore, 98% of high-impact GenAI users report that the technology positively impacts their market adaptability operations. This capability allows firms to respond flexibly to shifting market conditions and supports both strategic agility and sustained growth.

Focusing on strategic applications among high-ROI firms highlights a clear trend: By pushing beyond routine applications and embedding GenAI into core marketing processes, targeted, strategic use of technology can lead to superior ROI.

Barriers to GenAI Adoption Persist

Skill gaps and data concerns challenge broader adoption

Many CMOs need help adopting the technology, and skill gaps and unfamiliarity top the list of challenges. Nearly 90% of CMOs report needing more familiarity and skills as an obstacle, emphasizing the need for training and development for successful integration. This finding remains consistent across all experience levels, highlighting that these barriers persist regardless of how long firms have been using GenAI.

CMOs from companies in the development stage — those using the technology for two to five years — report additional challenges. Roughly one-third of CMOs in the development stage cite cost and maintenance as key implementation challenges. This suggests that these challenges can complicate efforts to use GenAI across marketing operations.

Likewise, all companies established in GenAI use are still concerned about data security. This suggests that as firms increase their reliance on the technology, protecting data becomes a more critical issue that can require ongoing attention. Addressing these concerns is crucial for CMOs aiming to expand GenAI’s role in their organizations.

While just 10% of CMOs cite limited ROI as a significant shortcoming, 12% point to technological limitations. This indicates that GenAI is primarily perceived as effective when used correctly. However, the challenges related to workforce readiness and data security highlight that firms need to focus on internal capabilities and infrastructure to maximize the technology’s potential.

These findings challenge the optimism that GenAI will be fully embedded in organizations by 2030. Bridging skill gaps, managing costs and ensuring data security are essential for this scenario to become reality.

Strategic approaches for overcoming GenAI adoption barriers

CMOs may need to explore scalable, cost-optimized solutions to manage operational demands.

Addressing common barriers through skill development, data security investments, and efficient resource management can allow more CMOs to integrate the technology for more sophisticated applications. These steps can help organizations achieve greater ROI and build or sustain a competitive advantage through reaping the benefits of expanded GenAI use.

Read More

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Methodology

“Strategic GenAI Integration is Unlocking Higher ROI for CMOs” is based on a survey conducted from October 7 to October 17, 2024. The report explores how CMOs integrate GenAI into strategic marketing efforts and the associated benefits and challenges. The survey sample included 60 CMOs from U.S. firms with annual revenues exceeding $1 billion. Respondents provided insights into their GenAI usage, focusing on its impact on marketing performance, key challenges to adoption, and areas where strategic application yields the highest ROI.