AI Is Disrupting the Marketing Industry Since Its Creation

Artificial Intelligence (AI) has come a long way since its inception, and its applications in modern business are more expansive than ever before. From automating mundane tasks to providing sophisticated data analysis, AI has become a game-changing tool that is revolutionizing industries across the globe.  

It opened up various possibilities for different industries, including marketing. The rapid advancements in AI technology have opened up new ways for marketers to understand customers, optimize campaigns, and drive sales. 

Today, we will explore how AI is revolutionizing customer engagement and personalization in marketing and how businesses can leverage these technologies to stay ahead of the competition.

AI-Driven Customer Profiling and Segmentation

One of the critical aspects of effective industry marketing is understanding your customer’s needs and preferences. 

AI-driven customer profiling and segmentation tools help businesses gather and analyze vast amounts of customer data, such as browsing history, purchase data, social media interactions, and more. These tools then use advanced algorithms to identify patterns and trends, creating detailed customer profiles and segments that help marketers better target their campaigns.

For example, AI can help identify high-value customers who are more likely to make a purchase or churn-risk customers who may need special attention to retain. This level of granularity in customer profiling enables marketers to create personalized content, offers, and promotions, significantly enhancing the effectiveness of their marketing efforts.

AI-Powered Content and Ad Optimization

Creating engaging content and ads is crucial to attract and retain customers. AI-powered tools can analyze large datasets to identify the best-performing content and ad formats, headlines, images, and call-to-actions. These insights help marketers optimize their content and ads, increasing engagement rates and ROI.

Moreover, AI can also help marketers in real-time optimization. For instance, AI-powered ad platforms can automatically adjust bids and budgets based on performance, ensuring that marketers get the best value from their ad spend.

Predictive Analytics for Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) is a critical metric for any business, as it helps determine the long-term profitability of a customer. AI-driven predictive analytics tools can analyze historical customer data and identify patterns to predict future customer behavior accurately. This enables marketers to pinpoint high-value customers and focus their efforts on retaining and upselling them, thus maximizing CLV.

Furthermore, predictive analytics can also help locate potential churn-risk customers, allowing marketers to proactively engage with them and offer personalized incentives to retain them.

Chatbots and Virtual Assistants for Enhanced Customer Experiences

AI-powered chatbots and virtual assistants have become increasingly popular in recent years as they help businesses provide instant, personalized customer support. These tools leverage natural language processing (NLP) and machine learning algorithms to understand user queries and provide relevant responses.

Chatbots and virtual assistants can significantly reduce response times and improve customer satisfaction by automating routine customer queries and support tasks. Moreover, these tools can also collect valuable customer data, which can be used to personalize content marketing campaigns further and enhance customer experiences.

AI-Driven Email Marketing

Email marketing remains one of the most effective marketing channels for businesses. AI can help marketers optimize their email campaigns by analyzing user behavior, open and click-through rates, and other metrics to identify the best-performing subject lines, email designs, and delivery times.

Compared to manual email marketing, AI-driven email marketing platforms can segment customers based on their behavior and interests, enabling marketers to deliver highly personalized and relevant content to each subscriber, thus improving engagement rates and ROI.


AI technologies are transforming the industry marketing landscape, empowering businesses to make data-driven decisions, enhance customer engagement, and drive sales. By leveraging AI-driven tools and platforms, marketers can unlock the full potential of their marketing efforts and stay ahead of their competition. 

While AI might not replace human intuition and creativity in marketing, it undoubtedly serves as an invaluable tool that can help businesses achieve their marketing goals more effectively and efficiently.

Want to know how to market your brand using the latest technological innovations? Kivo Daily is a global digital media, technology, and brand-building company primarily focusing on business, entrepreneurship, and thought leadership. Check out our other articles today!

Silicon Valley Bank had red flags, but no one noticed

Silicon Valley Bank — Not many people were aware of the existence of Silicon Valley Bank beyond the tech industry two weeks ago.

However, the bank’s failure created a domino effect that put its name on everyone’s radar while shaking the foundation of the global financial system.

On March 10, state and federal regulators stepped in to salvage what was left of Silicon Valley Bank after clients withdrew $42 billion a day earlier.

The bank’s collapse embedded its name in history as the second-largest bank failure in the United States’ history following the Washington Mutual failure in 2008.

Digging through the rubble

Following the collapse, analysts and regulators started going through the rubble, finding several red flags.

The bank’s vulnerabilities weren’t as complicated as believed.

Going through what happened to Silicon Valley Bank, there were signs of basic corporate mismanagement that, when paired with customer panic, created an existential flaw.

Next week, the world will understand how people failed to see SVB’s red flags over the questions at Capital Hill and hearings at House and Senate hearings breaking down the bank’s downfall.

For now, there is no definitive answer – if there is, no one is willing to explain – but it’s clear that Silicon Valley Bank’s collapse is down to a series of missed warnings rather than a single person, system, or asset.

Red flags

Silicon Valley Bank was founded in 1983 as a financial institution and status symbol for lucrative Bay Area businesses and individuals.

The bank catered to venture capitalists whose wealth allowed them to take risks.

SVB was something of an elite club where members were known for their hunger for boldness, growth, and disruption.

Between 2018 and 2021, Silicon Valley Bank grew aggressively as assets nearly quadrupled.

By the end of 2022, the bank was the United States’ 16th largest bank, holding $209 billion in assets – a feat that shouldn’t have gone unnoticed.


Dennis M. Kelleher, the CEO of Better Markets, noted that when banks grow at an alarming rate, there are red flags everywhere.

His words suggest that the bank’s management capacity and compliance systems rarely grow at the same pace as the rest of the business.

According to reports from the Wall Street Journal and the New York Times, the Federal Reserve warned SVB about its insufficient risk-management systems in 2019.

It’s unclear if the Fed, the bank’s primary federal regulator, took action upon the warning.

The central bank is currently reviewing its SVB oversight.

During a news conference last Wednesday, Federal Reserve Chairman Jerome Powell offered some insight on what the central bank was doing.

“My only interest is that we identify what went wrong here,” he said.

“We will find that, and then make an assessment of what are the right policies to put in place so it doesn’t happen again.”

Read also: Silicon Valley Bank blame game commences

Uninsured deposits

According to Wedbush Securities, 97% of Silicon Valley Bank’s deposits were uninsured.

Kairong Xiao, a Columbia Business School professor, said that US banks typically finance 30% of their balance sheets with uninsured deposits.

However, SVB had a “crazy amount.”

Individuals or businesses with plenty of uninsured money in an institution can quickly remove their money if they suspect the bank is in trouble.

Silicon Valley Bank’s over-reliance on the deposits made it unstable.

When members of its social-media-engaged community of clients started worrying about SVB’s viability, it triggered mass panic.


Silicon Valley Bank is renowned for its partnerships with young start-ups that other banks turn away.

When the start-ups gain traction, the bank grows with them.

SVB also managed the start-ups’ founders’ personal wealth as they were often light on cash with their fortunes tied to their companies’ equity.

“It was geographically concentrated,” said Kelleher. “It was industry-segment concentrated, and that industry segment was extremely sensitive to interest rates.”

“Those three red flags alone should have caused the bank’s officers and directors to take corrective action.”

Risk management

For casual observers, Silicon Valley Bank’s financial position in February wouldn’t have been anything noteworthy.

“The bank would’ve appeared healthy,” said Villanova University finance professor John Sedunov.

“If you look at their capital position, their liquidity ratios… they would’ve been fine.”

“Those traditional big-picture things, the front page items… They should have been fine.”

However, Sedunov noted that the problems were deeper under the bank’s portfolio and its liabilities.

SVB held 55% of its customers’ deposits in long-dated Treasuries, which are typically safe assets.

The bank wasn’t alone in loading up on bonds in a time where near-zero interest rates were prevalent.

Banks typically hedge their interest rate risk with financial instruments called swaps, trading a fixed interest rate for a floating rate for some time to minimize exposure to rising rates.

Silicon Valley Bank seemed to have zero hedges on its bond portfolio.

“Frankly, managing your interest rate risk exposure – that’s one of the first things that I teach an undergraduate banking class,” said Sedunov.

“It’s textbook stuff.”

The lost CRO

In 2022, the Fed boosted interest rates at an unprecedented pace, and for most of the year, Silicon Valley Bank operated with a big hole in its corporate leadership team: the chief risk officer.

Art Wilmarth of the George Washington University and an expert on financial regulation highlighted the CRO’s importance.

“Not having a chief risk officer is sort of like not having a chief operating officer or a chief auditing officer,” he said.

“Every bank of that size is required to have a risk management committee. And the CRO is the No. 1 person who reports to that committee.”

It was astonishing that SVB’s CRO was absent for most of 2022.

A CRO might have been able to recognize the outsize risk of the bonds’ dwindling value, which could have led to a course correction.

However, without one, there’s little excuse for SVB’s lack of hedges on its bond portfolio.

Experts said it’s likely people in the bank were aware of the risk and let them slide due to the bank’s capital and profitability.

“I’m sure someone saw, and I’m sure that somebody let it slide,” said Sedunov.

“Because again, if you’re in compliance with a lot of the big-picture things, perhaps they figured, well, they can survive something.”

“What’s the likelihood that you’re gonna have $40 billion in withdrawals all at one time?”

Mortgage rates affected by the banking crisis

Mortgage rates – For the past couple of weeks, the United States has been ushered into a banking crisis, which in turn, has affected several industries.

Despite only being March, mortgage rates are already creating a headache for prospective buyers.

They can expect mortgage rates to go down through the rest of 2023 as the banking crisis continues, which could also cool down inflation.

However, there is also the possibility of some setbacks.

The Feds

According to Freddie Mac, the average rate for a 30-year fixed-rate mortgage topped out at 7.08% in November following a steady rise in 2022 due to the Federal Reserve’s attempts to curb inflation.

The average rate trickled down through January as the economic data suggested inflation was retreating.

However, strong economic reports in February raised concerns that inflation wasn’t cool as quickly or as much as projected.

As a result, the average mortgage rate climbed back up by half a percentage point over the month after it fell to 6.09%.

In March, banks started failing, which sent rates falling again.

Despite the decline, the Federal Reserve and the bank failures didn’t directly impact mortgage rates.

Instead, the rates are indirectly affected by the actions the Fed takes or is expected to take.

Other factors are the health of the broader financial system and uncertainty that could be percolating.

On Wednesday, the Federal Reserve announced another rate hike by a quarter point to combat high inflation while considering the recent risks to financial stability.

Analysts say that despite the bank failures complicating the Fed’s actions, if it’s contained then the crisis might have helped them by bringing down prices without resorting to more interest rate hikes.

The Fed suggested on Wednesday that it could be the end of the rate hikes.

Credit and rates connection

Mortgage rates have been known for tracking the yield on 10-year US Treasury bonds.

It moves based on three factors:

  • The Fed’s actions
  • What the Fed does
  • The investors’ reactions

When Treasury yields increase, mortgage rates also go up; when they decline, mortgage rates follow.

After the Fed’s announcement on Wednesday, bond yields and the mortgage rates that shadow them dropped.

However, it isn’t all bad according to Zillow senior economist Orphe Divounguy.

Divounguy pointed out that the relationship between mortgage rates and Treasuries have slightly weakened in the past few weeks.

“The secondary mortgage market may react to speculation that more financial entities may need to sell their long-term investments, like mortgage backed securities, to get more liquidity today,” he said.

Divounguy added that as Treasuries decline, tighter credit conditions from the bank failures could limit dramatic plunging of mortgage rates.

“This could restrict mortgage lenders’ access to funding sources, resulting in higher rates than Treasuries would otherwise indicate,” he said.

“For borrowers, lending standards were already quite strict, and tighter conditions may make it more difficult for some home shoppers to secure funding.”

“In turn, for home sellers, the time it takes to sell could increase as buyers hesitate.”

Read also: The Fed brings up interest rates for the 9th straight week

Rates expected to stabilize in the long run

Inflation remains high, but it is slowing down.

Analysts are projecting a slower economy in the coming quarters that could contribute to bringing down inflation.

According to Mike Fratantoni, the senior vice president and chief economist of Mortgage Bankers Association, it could be good for mortgage borrowers who can expect rates to retreat throughout 2023.

Inflation is expected to improve in the second half of 2023, which could lead to stable mortgage rates.

“Expectations for slower economic growth or even a recession should bring inflation down and help mortgage rates decline,” said Divounguy.

It could be good news for home buyers as it improves affordability and brings down the cost to finance a home.

Furthermore, it could benefit sellers by reducing the intensity of an interest-rate lock-in.

Lower rates could also convince homeowners to list their home to the market.

As the inventory of homes for sale are edging around historic lows, it would add much-needed inventory to a limited pool.

“Mortgage rates are steering both supply and demand in today’s costly environment,” said Divounguy.

“Home sales picked up in January when rates were relatively low, then slacked off as they ramped back up.”

However, the cooling inflation could bring the risk of job losses, another hurdle in the housing market.

“Of course, much uncertainty surrounding the state of inflation and this still-evolving banking turmoil remains,” Divounguy added.

On Wednesday, Fed Chair Jerome Powell said estimates of the cost of banking developments could slow the economy.

Regardless, the impact would reflect mortgage rates.

“Evidence – in either direction – of spillovers into the broader economy or accelerating inflation would likely cause another policy shift, which would materialize in mortgage rates,” Divounguy noted.


IPO slowdown continues to spread in 2023

IPO — 2022 has been a disappointing year for the economy as a whole due to unforeseen elements like inflation.

As a result, there has been a slowdown in global initial public offerings.

While there were forecasts of an economic rebound for 2023, the Federal Reserve’s continued hike rate indicates that inflation remains a problem.

Furthermore, the IPO slowdown has continued into the first quarter of the year, and it is expected to endure in the coming months.

The news

According to reports, one reason behind the IPO slowdown is that companies are waiting out the effects of the following:

  • The volatile stock markets
  • Higher interest rates
  • Inflation
  • Uncertainty around the banking crisis

On Thursday, an EY report found that 299 companies worldwide went public in the past three months, which is down 8% compared to the same period last year.

Additionally, funds raised from the listing fell by 61% year-on-year to $21.5 billion.

EY reports that the slump follows a 45% drop in IPOs in 2022.

“Through just one quarter of 2023, it was more of the same for the stuttering global IPO market,” the firm said in a released statement.

“Any initial euphoria at the start of the year was quickly dampened by the unexpected inflation and interest rate outlook, with the mood further stifled by the latest turmoil in the global banking system.”


For the past couple of months, investors have been struggling with a higher cost for living and higher interest rates.

Recently, their concerns have grown following a historic upheaval in the banking industry that led to emergency interventions for some prominent financial institutions including:

  • Credit Suisse
  • First Republic Bank
  • Signature Bank
  • Silicon Valley Bank

According to the EY report, the signs indicate that companies are holding out for the stock markets to stabilize and rebound before they list.

Read also: China is spending billions to bail out loans

The banking crisis

In early march, the United States witnessed the second largest US bank failure since the 2008 financial crisis.

Silicon Valley Bank customers quickly pulled their money out before US regulators took over.

However, the collapse created a domino effect that panicked markets and mounted up weight on weaker financial institutions that had already been struggling with the increasing interest rates.

Signature Bank followed a week later before First Republic Bank hit another crisis.

Before a major financial crisis could erupt, central banks and several major players in the industry stepped in with emergency cash to keep the banks afloat.

Regardless, markets have remained on edge.

2022 market

In late 2022, IPO research firm Renaissance Capital reported the slowest period for the IPO market last seen in 2011.

The slowdown, while disappointing, still sparked some hope and optimism that the traditional IPO market would turn around.

However, IPOs for some of the most prospective startups seemed unlikely.

For example, TikTok parent company ByteDance has a significant value, but due to the economic tensions between the US and China, a stock listing isn’t anticipated to happen soon.

Furthermore, Chinese firms could opt to go public in Asia, namely Hong Kong or Shanghai, instead of New York.

US regulators also scrutinized publicly traded Chinese companies in 2022.

For example, the SEC investigated the IPO of Didi, China’s ride hailing app.

2023 Asia market

Asia Pacific EY IPO leader Ringo Choi revealed there was a backlog of firms interested in going public.

According to Choi, there are over 800 companies in the pipeline in mainland China.

However, he also noted that firms worldwide are biding their time after getting discouraged by a lack of returns for companies that went public in the last few months.

“Most of them report a loss,” Choi said. “People start to worry [and say], ‘Well, what’s the meaning for getting an IPO?’ Why don’t they wait?”

He expects the decline to carry into the summer, but things could also turn around with several factors helping investors regain confidence, including:

  • Peaking inflation
  • Softening energy prices
  • The rebound in mainland China’s economy


Ringo Choi believes the global market would recover in the second half of 2023 after already hitting bottom.

“We’re lying on the floor,” he said. “It’s very easy for us to have a rebound.”

He also noted that governments worldwide are trying to promote IPOs in their respective jurisdictions, which could help spark a revival.

John Lee, Hong Kong’s Chief Executive, recently traveled to Saudi Arabia, urging companies to consider listings.

“Once there is evidence of a more stable market with higher certainty, investor confidence should return,” EY wrote in its statement.