AI is transforming how people discover, compare, and make decisions across various industries. However, not every sector faces the same level of vulnerability. Recent research by BCG has identified four distinct archetypes detailing the impact of large language models (LLMs) on the consumer journey: Breached, Undefended, Contested, and Secured.
What this means
The use of AI, particularly large language models, is significantly altering the way consumers find and choose products and services in different industries. Some sectors are facing a complete overhaul of the traditional marketing and discovery processes.
Key opportunities for growth
Breached:
Industries such as travel, news, retail, and health and fitness are experiencing a drastic shift as AI takes over the discovery process, bypassing traditional channels like search engines and branded content. Brands in these sectors must focus on establishing direct relationships with consumers through loyalty programs, exclusive data, and enhanced user experiences.
Undefended:
Sectors like gaming, dating, and betting are seeing rapid changes in consumer behavior due to AI. Brands need to transition from transactional to durable relationships by investing in personalisation and strategic partnerships to maintain visibility in AI-driven recommendations.
Contested:
Productivity tools like Google Drive and Microsoft Office are witnessing a shift in how users interact with them through AI agents. Companies should enhance user value within the platform and play a role in shaping AI standards to maintain a competitive edge.
Secured:
Industries like fintech, traditional finance, social platforms, and streaming media have strong foundations that shield them from immediate AI disruption. However, they need to leverage AI to enhance customer loyalty, proactive personalisation, and strategic capabilities to stay ahead.
Practical strategies you can use
Focus on Direct Consumer Relationships:
Develop loyalty programs, offer exclusive data, and provide closed-loop experiences to regain direct relationships with consumers in Breached industries.
Invest in Personalisation:
Transition from transactional to durable relationships by investing in personalisation and AI-driven loyalty programs in Undefended sectors.
Enhance User Value:
Double down on enhancing user value within your platform and take an active role in shaping AI standards in Contested industries.
Leverage AI for Loyalty:
Use AI to deepen customer loyalty, proactively personalise interactions, and turn regulatory advantages into strategic assets in Secured sectors.
Expert insights and long-term impact
Embracing AI in marketing and customer interactions is key to staying relevant in today’s rapidly evolving business landscape. Understanding the distinct challenges and opportunities that AI presents can help businesses adapt and thrive in the digital age.
Common challenges and how to overcome them
Businesses may struggle to keep up with AI-driven changes in consumer behaviour and industry dynamics. By focusing on building direct relationships, investing in personalisation, and enhancing user value, companies can navigate the challenges posed by AI disruption.
Do you need help?
As a marketing and business growth expert, I specialise in helping companies navigate the evolving digital landscape. With practical strategies tailored to your industry, I can assist you in leveraging AI to drive growth and enhance customer relationships effectively.
Conclusion
Embracing AI-driven disruption requires businesses to proactively adapt their marketing and customer engagement strategies. By understanding the unique implications of AI across different industries and implementing practical initiatives, companies can position themselves for success in a rapidly changing business environment.
