The world is shifting to an environment built on blockchain and AI technology. Organizations, brands, marketers, and entrepreneurs are working to adapt to this new reality, turning to innovations like machine learning NFT marketing to stay competitive in an evolving marketplace. To do so successfully, they must build an understanding of how AI and blockchain intersect, and the symbiotic relationship the two have formed as a result. In this guide, we’ll dive into how that relationship is changing brand engagement as we know it, as well as the wider implications of AI technology in the information economy.
To understand how AI and the blockchain are changing marketing, it’s important to first understand the impact AI has had on the blockchain.
The integration of AI technologies is revolutionizing how the blockchain functions, from data management to cybersecurity, thanks to the powerful synergies created by combining the two technologies. Blockchain's secure and transparent nature enables trust and data validation, while AI can quickly analyze data to detect security risks and respond to threats.
Key applications of blockchain and AI technology include:
For a more in-depth review of AI’s effect on the blockchain, read our blog post “AI is Changing the Future of Blockchain.”
The effects of combining blockchain and AI technology have manifested as key improvements to the greater marketing pipeline, enabling better personalization, predictive analytics, and social listening practices. As a result, marketers can more easily reach and respond to their audiences, improving audience engagement for products like NFTs.
AI-powered personalization was a critical advancement in performance marketing. Rather than sending the same advertisement to countless individuals and hoping for the best, marketers can now target specific audiences based on factors such as age, gender, browsing habits, and personal preferences. AI-powered personalization allows advertising to reach a smaller and more committed audience via strategies like collaborative filtering, resulting in a higher likelihood of purchases.
Predictive analytics uses statistical modeling to analyze past and current data sets to forecast future outcomes. However, machine learning can improve these statistical models by automating the data collection process. By training algorithms on accurate data — and ensuring irrelevant or outdated information is discarded — marketers can gain a better understanding of consumer trends and potential challenges. This allows them to be more proactive, optimizing NFT marketing campaigns to achieve their full potential and minimizing customer attrition.
Social media is a potent tool for keeping up with conversations about your product. However, transforming this information into actionable data is a challenge. With billions of users across various platforms sharing text, videos, photos, and audio, compiling posts and acting on them takes a considerable amount of legwork.
Incorporating this content into machine learning algorithms can help brands understand the emotions and context behind customer-shared content. By doing so, you can better address customer needs in marketing campaigns and enhance your organization's service quality.
To see more ways AI and the blockchain are changing marketing, read “5 Ways to Enhance Your Web3 Projects With Machine Learning NFT Marketing.”
AI NFTs differ from traditional NFTs because they can change, grow, and create based on unique input from token holders. As a result, audiences can engage in a format that is most suitable to them, which helps them build a deeper relationship with the brand. AI NFTs offer entertainment brands three key benefits:
Enhanced fan engagement: Fans can interact with virtual counterparts of their favorite characters, asking questions and learning about their fictional world.
Generative possibilities: Brands can use AI NFTs to generate and tokenize unique assets based on their existing content and sell them to fans as authentic brand history.
Future potential: AI NFTs have immense growth potential, and brands that adopt them early will be better positioned to capture emerging possibilities.
AI NFTs are just getting started, so brands are only beginning to scratch the surface of what’s possible. For instance, a future generative AI marketing campaign based on a popular IP could create an entire storyline tailored to the individual viewer’s tastes. That storyline could be converted into an NFT comic, which the customer could purchase for themselves.
Read our blog post “3 Benefits of AI NFTs for Entertainment Brands” for more information.
While personalized comics could be a powerful use case for generative marketing, the possibilities for NFT-backed campaigns are practically endless, and new applications are frequently emerging. Marketers should stay up to date on blockchain advancements to find ways they can leverage the technology for their own brands. Stay up-to-date and get strategic advice on utilizing blockchain and AI technology delivered straight to your inbox by signing up for the Dibbs newsletter today.
While AI technology has obvious benefits for marketers, the growing reliance on AI raises significant ethical concerns. AI systems analyze and learn from massive data sets, allowing them to execute or simulate tasks performed by humans. However, AI is developed by humans and has inherited our imperfections.
AI systems that generate written content, such as ChatGPT or Google's Bard, are high-profile examples. Developed and trained by humans, these AI systems learn to create content by studying existing materials. If the content they learn from contains biases like racism or anti-Semitism, the AI may inadvertently perpetuate those biases in the content it generates. Therefore, AI content generation platforms are best used as a tool supported by human fact-checkers, writers, and editors, rather than a one-stop-shop for creating written material.
Determining the ethical ownership of art created by AI is another murky issue. If AI-generated art is sold, who should legally hold the rights to the revenue? AI is not a person and therefore cannot be assigned legal ownership of what it creates, making the creation and marketing of AI-generated art legally intricate. NFTs offer a definitive solution to ownership issues.
NFT ownership rights can be assigned to multiple owners via NFT. Token owners become the legal owners of the AI and the art it creates, circumventing ownership being assigned to an AI. NFTs also solve ethical issues in the world of trading, with some of the most popular ones using decentralized trading and blockchain technology to ensure ownership is properly accounted for.
For more information about the ethics of AI and NFTs, read our blog “The Ethics Behind the Disruptive Technology in AI NFTs.”
While ethical considerations are a hurdle, AI is ultimately a tool with the potential to do good. For fans, AI NFTs offer new ways to engage with brands through self-generative experiences and collaborative creations. However, brands must approach AI NFTs with care and expert guidance to avoid using the technology incorrectly or irresponsibly. Dibbs' tokenization services can help brands navigate the waters, activating Web3 marketing strategies and creating communities around collectibles. Ready to learn more? Get in touch today.