90% of CMOs Cite Lack of GenAI Skills as Roadblock to Adoption

Chief marketing officers (CMOs) are expanding their use of generative artificial intelligence (GenAI) beyond simple applications, seeking deeper integration for more business impact. However roadblocks still remain.

According to a PYMNTS Intelligence report, “Strategic GenAI Integration Is Unlocking Higher ROI for CMOs,” 37% of CMOs reported positive return on investment (ROI) from GenAI in October 2024 — up from just 8.3% in July. These high-ROI companies are using GenAI in areas like product marketing, performance measurement, and aligning strategies with business goals.

The report explores challenges CMOs face, including skill gaps and data security concerns, which slow broader adoption across firms.

High-ROI firms see the greatest returns from strategically applying GenAI across multiple tasks, with an average of seven applications, compared to just three for firms reporting negligible ROI, the report noted. This shift to more complex uses, like developing product marketing strategies aligned with business goals, results in stronger performance. While many CMOs still rely on basic applications like chatbots, those adopting high-impact GenAI use cases experience significant improvements in marketing and business outcomes.

According to the report, the percentage of CMOs reporting somewhat positive ROI decreased from 85% in July to 58% in October, while those reporting very positive ROI increased from 8% to 37%. These findings indicate the more sophisticated the application, the better the ROI — suggesting a strategic, long-term commitment to GenAI is important to achieving superior results.

High-ROI firms use GenAI for key marketing functions that drive business success. Nearly all CMOs (98%) at these firms prioritize product marketing, while 94% emphasize marketing analytics and performance measurement. In comparison, only 82% of CMOs with negligible ROI view product marketing as a key use case. By integrating GenAI into essential marketing processes, these firms can better align strategies with business goals and quickly adapt to market changes.

Consider 98% of high-ROI firms report GenAI enhances their adaptability to changing market conditions. This adaptability is crucial for sustained growth because it allows firms to respond to consumer behavior and emerging trends. The focus on strategic, high-impact applications is central to achieving excellent ROI and driving long-term success with GenAI.

Despite the growing ROI, many CMOs still face barriers to broader GenAI adoption. Skill gaps and unfamiliarity with the technology are the top challenges, with nearly 90% of CMOs citing these as obstacles to full implementation.

This issue is consistent across firms at all stages of GenAI integration, highlighting the need for more training and development to fully leverage the technology’s potential. Additionally, CMOs in companies that have been using GenAI for two to five years are concerned about the costs and maintenance associated with scaling the technology, according to the report.

Data security is another major concern, particularly among firms with established GenAI operations. As companies increase their reliance on technology, protecting sensitive data becomes a critical issue. Addressing these barriers — through skill development, improved security protocols, and cost-effective solutions — will be necessary for CMOs seeking to maximize the value of GenAI.

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