Journal of Life Economics, Volume/Cilt: 11, Issue/Sayı: 1, Year/Yıl:2024

Volume / Cilt: 11, Issue / Sayı: 1, 2024, pp.13-29

JL CO E - ISSN: 2148-4139
URL: https://www.journals.gen.tr/jlecon
Received / Geliş: 27.11.2023
Acccepted / Kabul: 29.01.2024
DOI: https://doi.org/10.15637/jlecon.2294

RESEARCH ARTICLE / ARAŞTIRMA MAKALESİ

Beyond interaction: Generative AI in

conversational marketing - foundations,
developments, and future directions

Khalil Israfilzade1 Nuraddin Sadili2

1
PhD, Kauno Kolegija Higher Education Institution, Lithuania, e-mail: [email protected]
2
Instructor, ADA University, Azerbaijan, e-mail: [email protected]

Abstract

This paper explores the integration of Generative Artificial Intelligence (AI) in conversational marketing,
transitioning from traditional marketing to interactive, customer-centric strategies. It examines the shift from one-
way communication to dynamic, AI-driven interactions that personalize customer experiences. Central to this
study is how Generative AI facilitates real-time, tailored dialogues between brands and customers, enhancing
customer engagement and satisfaction. The paper also addresses the challenges and ethical considerations of
using anthropomorphic AI in marketing, balancing human-like AI traits with user expectations. Additionally,
it presents a novel framework that conceptualizes the combination of Generative AI and anthropomorphism in
conversational marketing into four distinct quadrants, providing a comprehensive analysis of their potential
interplay. Conclusively, it offers strategic insights for leveraging AI in marketing while adhering to ethical
practices, highlighting the potential of Generative AI to transform customer engagement in the digital age. This
research has two important consequences. Practically, it offers valuable insights and strategic recommendations for
businesses aiming to integrate Generative AI into their conversational marketing practices effectively. Theoretically,
it contributes to the academic discourse by highlighting the transformative role of Generative AI in marketing,
suggesting avenues for future research in this rapidly evolving field. This study provides a brief overview of the
evolving role of AI in modern marketing strategies, emphasizing the future potential and implications of AI-driven
conversational marketing.

Keywords: Generative AI, Conversational Marketing, Digital Marketing, AI in Marketing, Customer Engagement

JEL codes: M30, M31, M39

Citation/Atıf: ISRAFILZADE, K. & SADILI, N. (2024). Beyond interaction: Generative AI in conversational marketing - foundations,
developments, and future directions. Journal of Life Economics. 11(1): 13-29, DOI: 10.15637/jlecon.2294
Corresponding Author/ Sorumlu Yazar: Bu çalışma, Creative Commons Atıf 4.0 Uluslararası
Lisansı ile lisanslanmıştır.
Khalil Israfilzade
This work is licensed under a Creative Commons
E-mail: [email protected] Attribution 4.0 International License.

13
Israfilzade & Sadili

1. INTRODUCTION AI to create personalized, adaptive, and

engaging customer experiences. The review is
The field of marketing has changed dramatically limited to the integration of AI in conversational
in recent years, particularly due to the rapid marketing, specifically focusing on the role of
evolution of digital technologies and the Generative AI. It will not delve into traditional
emergence of Artificial Intelligence (AI). This marketing strategies that lack an AI component
paper expands into the world of conversational or conversational aspect.
marketing, a paradigm shift away from
traditional broadcast marketing and towards a In addition, the paper investigates the concept
more interactive, customer-centric approach. The of anthropomorphism in AI, examining
integration of Generative AI, which has redefined how humanising AI can improve customer
the boundaries of customer engagement and engagement while also discussing the ethical and
interaction, is central to this transformation. practical challenges it presents (Epley, Waytz, &
Cacioppo, 2007; Israfilzade, 2023a, 2023b). The
Historically, marketing strategies were primarily future directions and strategies for Generative
one-way, with businesses broadcasting content AI in conversational marketing are investigated,
across various mediums and treating customers revealing how businesses can effectively navigate
as passive recipients. Although effective in and leverage these advancements.
reaching large audiences, this approach lacked
personalisation and interactive engagement. Nevertheless, as we enter this new era
The rise of digital marketing, fuelled by the of marketing, this paper aims to provide
increasing number of social media platforms, a comprehensive understanding of the
has resulted in a major change, demanding a evolution, current state, and future potential of
deeper strategy that appeals to the informed conversational marketing. It attempts to provide
and interactive modern customer (Einhorn & a strategic framework for businesses and
Löffler, 2021; Pilelienė, Alsharif, & Alharbi, 2022; researchers looking to harness the full potential
Babayev & Israfilzade, 2023). of Generative AI in transforming customer
interactions and experiences by examining
Conversational marketing is becoming the intersection of technology, customer
increasingly important in the current era, as engagement, and ethical considerations.
it focuses on immediate and personalised
interactions between brands and customers 2. LITERATURE REVIEW
(Kaczorowska–Spychalska, 2019; Israfilzade,
2.1. Foundations of Conversational Marketing
2021; 2023b; Chandra, Shirish & Srivastava,
2022). This approach is to encourage a two- Historically, the predominant strategy in
way dialogue with customers that relates on a marketing has been a broadcast approach, as
personal level, rather than simply providing outlined by Sinha & Singh (2018). This approach
information. The incorporation of Generative AI saw companies disseminating promotional
into conversational marketing has changed the content across various mediums like
game, allowing for the creation of sophisticated, newspapers, television, radio, and early digital
human-like interactions that go beyond simple platforms, with customers mainly as passive
transactional exchanges. These AI-powered recipients. Personalization and engagement on
interactions are not only more engaging, but they a one-to-one level were virtually non-existent
also allow for a more in-depth understanding of in this model, although it allowed companies
customer needs and preferences. to reach vast audiences. However, the dawn of
the digital age and the explosion of social media
This paper aims to provide a concise definition
platforms heralded a significant transformation
and scope of conversational marketing, situating
in marketing strategies, transitioning into what
it within the broader context of digital and AI-
is now often termed Digital Marketing. Today’s
driven marketing strategies. It will explore how
customers, more informed than ever before
conversational marketing leverages Generative
(Einhorn & Löffler, 2021; Pilelienė, Alsharif &

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 Journal of Life Economics, Volume/Cilt: 11, Issue/Sayı: 1, Year/Yıl:2024

Alharbi, 2022), demand experiences that are not humans and computers, which is referred to as
only personalized but also interactive (Babayev & Human-Computer Interaction (HCI) (Grudin,
Israfilzade, 2023), seeking two-way interactions 2022), in order to comprehend the initial stages
where their inquiries and feedback are promptly of conversational marketing. A phenomenon
addressed and valued. that has been around since the beginning of
personal computing, HCI is a multidisciplinary
Accompanied by this paradigm shift,
field of research that investigates how people
new methodologies have emerged, with
communicate with machines to enhance the
conversational marketing standing out as a key
technology experience, and more generally,
development (Kaczorowska–Spychalska, 2019;
communication between users (consumers) and
Israfilzade, 2021; 2023a; 2023b). This approach is
computing devices.
a renaissance of the age-old tradition of personal,
one-to-one interactions adapted for the digital Humans and virtual devices are moving towards
era. Conversational marketing is about creating a natural language-based interfaces, such as the
dialogue with customers, offering a personalized Conversational Interface (CI), which simulates
and engaging experience vastly different from talking to an “actual” person by speech or text
traditional marketing methods. (Kocaballi, Laranjo & Coiera, 2019). The use
of natural language as a persuasive usability
This paradigm shift resulted in the creation of new
approach allows users to communicate with the
methods and strategies, one of which came to be
device on their own terms rather than utilising
known as conversational marketing (Israfilzade,
a limited set of predefined ways (Zadrozny,
2021; 2023b). Conversational marketing emphasizes
2000; Moore et al., 2017). The user asks natural-
the significance of direct and meaningful
language queries in text-based, and voice-
discussions between firms and customers. The
based discussions, and the conversational agent
concept of “dialogue” is at the very core of what is
responds naturally. These systems use natural
referred to as “conversational marketing.” Even
language dialogues with auditory or textual
while it would appear obvious given its name,
input to let individuals engage with non-human
the relevance of this straightforward idea cannot
things (Zhang et al., 2018; Hussain, Ameri Sianaki
be underestimated. This is especially true when
& Ababneh, 2019). The conversational interface
compared to the context of traditional marketing
in business drives machines to communicate in
methods, which tend to overload consumers
a human manner, reflecting the context around
with a wave of information, oftentimes without
us (Følstad & Brandtzaeg, 2017; Bavaresco et al.,
their request.
2020; Jamil & Shahzadi, 2023).
2.1.1. Historical Context and Evolution
Irrespective of the industry, whether it is
The origins of conversational marketing can business-to-business (B2B) or business-to-
be traced back to the early days of commerce, consumer (B2C) (Rėklaitis & Pilelienė, 2019),
where personal, one-on-one interactions were the ultimate customer is the individual who
the cornerstone of business transactions. In interacts with the company’s website or
traditional marketplaces, merchants and marketing through a conversational interface.
customers engage in direct dialogue, creating Conversational interfaces represent the third
a personalized experience that influences major advancement in user interfaces, specifically
purchasing decisions. This foundational in relation to Natural User Interfaces (NUIs) and
principle of personal interaction has evolved and User-Centered Programming (UCP) (Figure 1).
adapted with technological advancements and According to the influential book “Brave NUI
changes in consumer behaviour. environment” (Wigdor & Wixon, 2011), the
Command-Line Interfaces (CLI) were initially
Interestingly, the development of these used to control early machines, but they were
technological improvements did not occur later replaced by Graphical User Interfaces (GUI)
immediately. It is necessary to take into which utilise graphical displays and icons. This
consideration the contact that takes place between

15
Israfilzade & Sadili

2.1.1. Historical Context and Evolution

transition occurred during the era of personal natural interface technologies advanced
The origins(Fernandez
computers of conversational marketing can be traced
et al., 2016). back in
rapidly to thethe 1970s
early days of commerce,
and 1980s. Accordingwhereto
personal, one-on-one interactions were the cornerstone of business transactions.
Przegalinska (2019) and colleagues, some chatbotIn traditional
To create effective
marketplaces, merchants interface environments
and customers engage in direct dialogue, creating
programmers believe athey
personalized experience
are encouraged to
for customers, purchasing
that influences scientists decisions.
and practitioners
This foundational principle of personal interaction has evolved
utilise techniques to deceive customers. They
are requiredwith
and adapted to technological
be aware of changes inand changes in consumer behaviour.
advancements prioritised deceiving consumers over doing
communication between humans and machines
Interestingly, the development of these technologicalcomplicated improvements natural language
did not processing tests.
occur immediately. It is
over time (Fitzpatrick, 2018; Xu, 2019; Becerik-
The “Chinese Room” (Searle,
necessary to take into consideration the contact that takes place between humans and computers, which 1980) asserts that
Gerber, 2022). The idea of developing a
is referred to as Human-Computer Interaction (HCI) (Grudin, a digital2022),machine performing
in order to comprehend a programme
the initial
computer — or, better yet, software — that can
stages of conversational marketing. A phenomenoncannot that hasbe considered
been around “mindful,”
since the“understood,”
beginning of
speak with people and provide the illusion of
personal computing, HCI is a multidisciplinary field or “conscious.”
of research that This investigates
stimulation how method
people is
actual human relationships to individuals dates
communicate with machines to enhance the technology reminiscent of this notion.and
experience, The more
cognitive power
generally,
back to the 1950s, when Alan Turing debuted his
communication between users (consumers) and computing devices. natural languages will rapidly
of profound
groundbreaking “Imitation Game” (Alan, 1950).
improve with the emergence of “conscious”
Humans
The goal of and
thevirtual
“Turingdevices
test,” asare
it ismoving
more oftentowards natural language-based interfaces, such as the
Conversational
known, Interfacewhether
is to determine (CI), which simulates
a computer cantalking structures.
to an "actual" person by speech or text (Kocaballi,
Laranjo & Coiera, 2019). The use of natural
give other individuals the impression that they language as
Ina simple
persuasive usability
terms, a bot approach allowsprogram
is a software users to
communicate with
(e.g., bots) are human. the device on their own terms rather than utilising a limited set of predefined
that automates certain tasks. Chatbots automate ways
(Zadrozny, 2000; Moore et al., 2017). The user asks natural-language queries in text-based, and voice-
human interactions one-on-one (Mauldin, 1994,
based discussions,
Early instances ofand the type
this conversational
of programme agent responds naturally. These systems use natural language
Gaetano & Diliberto, 2018; Jamil & Shahzadi,
dialogues
include with auditory
ELIZA at the MIT or textual input to let individuals
AI Laboratory in engage with non-human things (Zhang et al.,
2023). The conversational AI ecosystem
2018; Hussain,
1966. Through Ameri
ELIZA,SianakiJoseph& Weizenbaum
Ababneh, 2019). The conversational interface in business drives
encompasses voice bots (e.g. Siri, Google Now,
machines
(1966) to communicate
demonstrated in a human
the potential formanner,
naturalreflecting the context around us (Følstad & Brandtzaeg,
Cortana, Alexa, Bixby, Alice) and text-based
2017; Bavaresco
language et al., 2020;
information Jamil & Shahzadi,
interchange between 2023).
technologies on instant messaging platforms (e.g.
humans and ofcomputers.
Irrespective the industry, When answering,
whether the
it is business-to-business (B2B) or business-to-consumer (B2C)
Facebook, Telegram, WeChat, Skype) (Gaetano
machine
(Rėklaitisassumed the 2019),
& Pilelienė, role ofthea psychotherapist,
ultimate customer is the individual who interacts with the company's
& Diliberto, 2018; Sheehan, Jin & Gottlieb, 2020;
searching
website oramarketing
defined dictionary for terms. Theinterface. Conversational interfaces represent the third
through a conversational Dhandayuthapani, 2022; Pilelienė & Jucevičius,
initial
major “chatterbot”
advancement(Weizenbaum & McCarthy,
in user interfaces, specifically in2023).
relation to Natural
Chatbots, alsoUser
known Interfaces (NUIs) and
as conversational
1977) establishedProgramming
User-Centered the foundation(UCP) for chatterbots
(Figure 1). According
agents, may utilise advanced technology NUI
to the influential book "Brave like
and bots throughout
environment" (Wigdor the &next 50 years.
Wixon, 2011), the Command-Line Interfaces (CLI) were initially used to
natural-language processing, machine learning,
control early machines, but they were later replaced by Graphical User Interfaces (GUI) which utilise
Before graphical and artificial intelligence.
graphical displays user interfaces,
and icons. textual and
This transition occurred during the era of personal computers (Fernandez
et al., 2016).
CLIs GUIs NUIs

Language
communication
growth Chatbot
Mouse Virtual reality
multi-touch Augmented reality
touchscreen Gesture interface control
Keyboards Graphical word processing Virtual assistant
Console user interface Internet of things (IoT)
Timeline

CLIs - Command-Line Interfaces, CLIs - Command-Line Interfaces,

GUIs - Graphical User Interfaces, GUIs - Graphical User Interfaces,
NUIs - Natural User Interfaces NUIs - Natural User Interfaces
Figure 1. Evolution of User Interfaces.
Figure 1. Evolution of User Interfaces.
Source: created by author

16
 Journal of Life Economics, Volume/Cilt: 11, Issue/Sayı: 1, Year/Yıl:2024

In the past 50 years, individuals have been using Hence, it is feasible to understand the precise
machines to communicate on their own terms, components that make up conversational
pointing, dragging, swapping, and tapping marketing. The current study provides an
(Babayev & Israfilzade, 2023). By learning our obvious definition of conversational marketing:
language, computers can adapt and respond
“Conversational marketing is a contemporary
to messages (Cancel, Gerhardt & Devaney,
marketing approach that utilizes real-time, AI-
2019; Cheng & Jiang, 2021; Jamil & Shahzadi,
enhanced, personalized one-to-one interactions
2023). Companies that thrive in interfaces may
across diverse channels to facilitate collaborative
also meet their own standards and become
brand and product experiences, thereby
more customer-centric. Companies aim to
strengthening customer relationships and
improve customer relationships and revenue
enhancing overall customer experience.”
by communicating with customers in their
preferred language, anticipating their needs, The revised definition was first presented in the
and maximising touchpoints throughout their research paper “Conversational Marketing as a
journey. Framework for Customer Interaction” authored by
Israfilzade in 2021.
2.1.2. Basic Principles of Conversational
Marketing Conversational marketing, on the other hand,
makes use of the potential of interactive dialogues
To have a complete understanding of what
to do more than just relay information; rather,
conversational marketing is all about, it
it deeply engages customers by facilitating a
is necessary to begin with a fundamental
dynamic exchange in which they move from
comprehension of the term at its most
being passive receivers to active participants.
fundamental level. At this point, starting with
Interactions become more meaningful and
‘conversation’ is essential.
personalised, and as a result, more engaging
Cambridge English Dictionary (2023) defines (Zhang et al., 2018; Shumanov & Johnson,
conversation as a talk between two or more people 2021). This can be accomplished by tailoring
whose thoughts, feelings, and ideas are expressed, conversations to the specific context of each
questions are asked and answered, or news and individual customer. For instance, artificial
information are exchanged. intelligence chatbots are able to handle multiple
customer conversations at the same time (Cheng
However, academically speaking, Conversational
& Jiang, 2021; Harbola, 2021; Chandra, Shirish &
marketing is an approach that prioritises
Srivastava, 2022), which enables them to provide
customer engagement through interactive
instant responses and individualised experiences
conversations in real-time. It focuses on creating
to a wider audience.
meaningful dialogue with customers (Cancel &
Gerhardt, 2019; Israfilzade, 2021; 2023b; Chandra, From this foundational understanding of
Shirish & Srivastava, 2022). Differentiating conversation as a reciprocal and dynamic
from conventional, one-directional marketing exchange, conversational marketing emerges as a
communications, the objective is to engage with sophisticated marketing approach. It transcends
customers by utilising the influence of dialogue the traditional one-way dissemination of
to convey information, address inquiries, and information, embodying instead a two-sided
gather feedback, thereby establishing more dialogue where interaction is key. Just as a
profound, individualised relationships with conversation involves listening, responding, and
customers. Given the widespread usage of the adapting to the flow of dialogue, conversational
digital era (Babayev & Israfilzade, 2023), it is marketing is built on similar principles.
unsurprising that most of these interactions occur
According to the author (Israfilzade, 2021; 2023b),
on instant messaging platforms. These platforms
conversational marketing is an innovative and
serve as the contemporary benchmarks of online
forward-thinking strategy that fundamentally
communication.
revolves around eight key principles (Table 1)

17
Israfilzade & Sadili

that have been formulated specifically for the addressing customer needs and interests in
purpose of this research. To begin, it takes a order to provide a curated and individualised
customer-centric approach, which centres on experience. It also highlights the importance of

Table 1. Key principles of conversational marketing

Table 1. Key principles of conversational marketing

Principles of Description
Conversational
Marketing

Customer- At the heart of conversational marketing is the principle of customer-centricity.

Centric This approach prioritizes the customer's needs, preferences, and feedback,
Engagement ensuring that every interaction is tailored to the individual. It's about
understanding the customer as a unique entity rather than a part of a broad
market segment, thus fostering a deeper, more meaningful connection.

Real-Time One of the defining features of conversational marketing is its emphasis on real-
Interaction time communication. This immediacy mimics the natural flow of a human
conversation, making interactions more dynamic and responsive. Whether
through chatbots or live agents, the ability to engage customers instantly is
crucial in building trust and maintaining their interest.

Personalization Conversational marketing leverages data and insights to deliver personalized

experiences. By analysing customer interactions, preferences, and behaviours,
brands can customize their communication, making it relevant and appealing to
each individual. This level of personalization goes beyond addressing a
customer by name; it involves tailoring content, recommendations, and
responses to align with specific customer needs and interests.

Feedback and Conversational marketing is an iterative process that relies heavily on customer
Adaptability feedback. It involves not only listening to what customers say but also adapting
strategies based on this feedback. This continuous loop of feedback and
adaptation helps businesses to stay relevant and responsive to changing
customer needs and market trends.

Omnichannel This principle involves being present across multiple channels and platforms
Presence where customers are likely to engage. Whether it's social media, messaging apps,
email, or a website, conversational marketing ensures a seamless and consistent
experience across all these touchpoints. This omnichannel strategy allows
customers to interact with a brand on their preferred platform, enhancing
accessibility and convenience.

Scalability and While maintaining a personal touch, conversational marketing also embraces
Automation automation for scalability. Tools like AI-driven chatbots can handle a large
volume of interactions simultaneously, ensuring efficiency without
compromising the quality of engagement. This scalability is essential for
managing large customer bases without losing the essence of personalized
interaction.

Contextual Effective conversational marketing requires a deep understanding of the context

Understanding of each interaction. This means recognizing the customer’s current position in
the buying journey, their previous interactions with the brand, and their
potential needs. Such contextual awareness enables more relevant and helpful
conversations.

Transparency Building trust is fundamental in conversational marketing. This involves being

and Trust transparent about data usage, privacy policies, and the nature of AI-driven
interactions. Clear communication about how customer data is used and
protected helps in establishing trust and credibility.

Source: created by author

18
 Journal of Life Economics, Volume/Cilt: 11, Issue/Sayı: 1, Year/Yıl:2024

real-time engagement, which involves promptly with customers’ preferred modes of interaction.
interacting with customers to significantly This strategy is complemented by the continual
improve both their level of satisfaction and adaptation of marketing tactics based on customer
their experience as a whole. In addition, this feedback, creating an iterative process that keeps
method of marketing encourages interactive businesses attuned to evolving customer needs
dialogues, which helps to foster communication and market trends (Babayev & Israfilzade, 2023).
in both directions and active participation from The integration of scalability and automation,
customers, rather than limiting customers to the alongside a deep contextual understanding
role of passive receivers of marketing messages. of each interaction, further enhances the
effectiveness of conversational marketing,
The essence of conversational marketing
making it a robust, responsive, and customer-
is encapsulated in its core principles, each
centric approach. Lastly, the foundation of
playing a pivotal role in forging deeper, more
transparency and trust is paramount, with clear
meaningful connections between brands and
communication about data usage and privacy
customers. Central to this approach is customer-
policies, reinforcing the credibility and reliability
centric engagement, where the focus shifts from
of brand-customer interactions.
broad market segments to individual customer
needs, preferences, and feedback. This principle 2.2. The Role of AI in Conversational Marketing
ensures that every interaction is uniquely
Throughout the past few years, advancements
tailored, recognizing each customer as a distinct
in Artificial Intelligence (AI) approaches have
entity with specific desires and concerns. This
provided a boost to powerful strategies, such
level of personalization, bolstered by data-
as deep neural networks and machine learning.
driven insights, allows for the customization of
These techniques have also been utilised in the
communication, ensuring that each interaction is
conversation, which has traditionally included
not only relevant but also resonates on a personal
Natural Language Understanding (NLU),
level. Personalization in conversational marketing
Dialogue State Monitoring (DST), Natural
goes beyond mere superficial adjustments; it’s
Language Generation (NLG), and Natural
about aligning content, recommendations, and
Language Processing (NLP) in general (Wang
responses with the specific needs and interests
& Yuan, 2016; Zhang et al., 2018; Hori et al.,
of each customer. Such a strategy transforms the
2019; Hussain, Ameri Sianaki & Ababneh, 2019).
customer experience from a standard transaction
Several papers have also been published that
to an engaging, personalized journey (Shumanov
have utilised these techniques.
& Johnson, 2021).
AI is not a phenomenon that emerged out of
Supporting these principles are the crucial
nowhere; in fact, the majority of its practical
aspects of real-time interaction, omnichannel
and methodological underlying structure has
presence (Pagani, Racat & Hofacker, 2019; Rheu
developed over the course of the past sixty years. In
et al., 2022), and the adaptability of the marketing
accordance with the records (McCarthy, Minsky,
strategy based on customer feedback. The
and Rochester, 1956), the official introduction
emphasis on real-time communication mirrors
of artificial intelligence was considered to have
the dynamics of natural human conversation
occurred during the “Dartmouth Conference”
(Kaczorowska–Spychalska, 2019), lending
or “The Dartmouth Summer Research Project on
immediacy and responsiveness to customer
Artificial Intelligence” in 1916.
interactions, whether through AI-driven
chatbots or live agents. This immediacy is key to However, an important aspect of this evolution
maintaining customer interest and building trust is the increasing accessibility and affordability of
(Rheu et al., 2022). Furthermore, conversational AI technology. As AI becomes more mainstream,
marketing thrives on its omnichannel presence, its adoption across various business sectors has
ensuring a seamless experience across various surged, making sophisticated conversational
platforms, from social media to email, aligning marketing tools more readily available to a wider

19
Israfilzade & Sadili

range of businesses. This democratization of AI Transformer-based models such as the GPT

technology means that even small and medium- series from OpenAI are some of the models that
sized enterprises can now leverage advanced AI are included in this category (Liu et al., 2023).
to enhance their customer interactions, a luxury GANs, for example, are very good at creating
that was previously available only to large images that look like they were taken from
corporations with substantial resources. real life, whereas GPT models are very good
at producing text that is very similar to how
This level of proactive engagement was
humans write (Radford et al., 2019; Houde et
unimaginable in the early years of AI but is
al., 2020; Liu et al., 2023). Each of these models
now becoming a reality, thanks to continuous
brings its own set of capabilities to the table.
advancements and the increasing integration
of AI in everyday business processes. With AI Within the context of conversational marketing,
becoming more affordable and widely adopted, the most obvious manifestation of generative
its impact on conversational marketing is artificial intelligence can be seen in the creation of
profound, offering businesses of all sizes the sophisticated chatbots or virtual administrative
opportunity to engage with their customers in assistants. In contrast to their rule-based
more meaningful, intelligent, and personalized counterparts (Cheng & Jiang, 2021), these
ways. chatbots powered by artificial intelligence are
able to comprehend human input, learn from it,
2.2.1. Integration of Generative AI in
and respond to it in an unpredictable manner. In
Conversational Marketing
order to interpret customer inquiries, learn from
The field of Generative Artificial Intelligence previous interactions, and generate responses
(AI) marks a significant evolution in the broader that are human-like in real-time, they make use
landscape of AI technologies. Generative AI, of natural language processing and machine-
distinct from traditional AI, focuses on creating learning techniques (Nuruzzaman & Hussain,
new and original content, ranging from text and 2018; Harbola, 2021; Ooi et al., 2023).
images to music and voices, based on the patterns
The integration of Generative AI into
it learns from existing data. This technology goes
conversational marketing significantly
beyond mere data interpretation or response
transforms customer engagement, offering a
generation, as it involves the synthesis of novel
multitude of benefits. It enhances the customer
outputs that can mimic human-like creativity
experience through personalized (Kaczorowska–
and intuition.
Spychalska, 2019), relevant interactions, and
Generative AI, a particular area of Artificial ensures 24/7 availability, addressing inquiries
Intelligence, is revolutionising the domain of anytime without the constraints of human
content creation through its advanced machine operation hours. This technology scales
learning methodologies. This evolution signifies personalization by analysing extensive customer
a notable deviation from traditional AI, which data, providing tailored experiences more
predominantly emphasised data analysis and efficiently than human agents. Additionally,
decision-making, thereby enabling more creative Generative AI proves to be a cost-effective
applications in content creation (Goodfellow et solution, handling high volumes of interactions
al., 2014; Houde et al., 2020; Cheng & Jiang, 2021; simultaneously, reducing operational costs,
Dwivedi et al., 2023). and minimizing human error (Budhwar et al.,
2023). Its learning capability allows for continual
Generative artificial intelligence, in contrast to improvement in service quality, with the system
its traditional counterparts, extends its reach adapting and evolving from each interaction.
into the realm of creativity by producing a wide Moreover, AI-driven insights equip businesses
range of content responses that are specifically with data for informed decision-making,
tailored to the interactions of users (Israfılzade, enhancing product and strategy development.
2023b). Generative Adversarial Networks
(GANs), Variational Autoencoders (VAEs), and Importantly, Generative AI shifts the paradigm

20
 Journal of Life Economics, Volume/Cilt: 11, Issue/Sayı: 1, Year/Yıl:2024

from reactive to proactive customer service, go beyond the practice of describing actions,
initiating conversations and anticipating needs, whether those actions are imagined or observed
thereby opening new avenues for engagement (Israfilzade, 2023b).
and marketing opportunities. This holistic
Scholars from a wide range of disciplines
enhancement of customer service and marketing
have long observed that humans perceive
strategies underscores Generative AI’s growing
nonhuman agents to be humanlike (Horowitz
indispensability in the modern business
& Bekoff, 2007; Epley, Waytz, & Cacioppo,
landscape.
2007; Murphy, Gretzel, & Pesonen, 2019; Wan
When looking into the future, generative & Chen, 2021; Crolic et al., 2022; Makany et al.,
artificial intelligence has the potential to play 2023). Anthropomorphic explanations have been
a significant role in further transforming questioned as to whether they have a proper
conversational marketing strategies. It is likely place in scientific discourse and whether they can
that as technology continues to advance, we account for phenomena ranging from religious
will see the development of more sophisticated belief to successful marketing campaigns.
models that are able to handle more complicated
Anthropomorphizing non-human entities or
conversations, comprehend the context with
objects involves empowering them with human-
greater precision, and generate responses that
like characteristics, intentions, emotions, or
are more pertinent and engaging. Generative
behaviours (Epley, Waytz, & Cacioppo, 2007).
artificial intelligence is also beginning to
The concept is fundamental to human cognition
synergize with other technologies, such as
and is frequently unconscious (Guthrie, 1993).
augmented reality (AR) and virtual reality (VR),
In artificial intelligence and conversational
which promises to create more immersive and
marketing, anthropomorphism is used to create
interactive conversational experiences (Dwivedi
conversational agents that feel human and
et al., 2023; Ooi et al., 2023).
improve user experience.
On the other hand, the development of generative
The humanization of AI through
artificial intelligence brings with it a number of
anthropomorphism brings several benefits to
difficulties and ethical responsibilities. Concerns
conversational marketing. Firstly, it enhances
regarding data privacy, the transparency of AI
customer engagement by making interactions
mechanisms, and the possibility of AI-generated
more natural and intuitive (Israfilzade, 2023a,
misinformation or deception must be addressed
2023b). Customers are more likely to feel
with the greatest of caution. To truly capitalise on
understood and valued when interacting
the potential of generative artificial intelligence
with AI that can mirror human empathy and
in conversational marketing, it will be essential
understanding. This leads to improved customer
to successfully navigate these challenges as we
satisfaction and loyalty, as well as higher
continue to advance further into this potentially
conversion rates. Additionally, anthropomorphic
exciting future.
AI can handle sensitive customer service
2.3. Anthropomorphic Generative AI on situations more effectively, providing responses
Conversational Marketing that are empathetic and considerate.

Anthropomorphism is a term that originates Moreover, the learning and evolution capacity
from the Greek words anthrōpos (ἄνθρωπος), of Generative AI enables the creation of more
which means «human,» and morphē, which personalized, relevant, and valuable dialogues.
means “shape” or “form.” Together, these By amassing and analyzing data from user
words form the basis of the term. In addition interactions, these AI systems can fine-
to the practice of attributing life to non-living tune their responses to better mirror human
things, which is referred to as animism, this term conversation patterns. This feature paves the
encompasses a wider range of interpretations. In way for more dynamic and robust dialogues,
order to engage in anthropomorphism, one must allowing marketers to engage customers in more

21
Israfilzade & Sadili

meaningful and impactful conversations. the AI appearing impersonal and mechanical

(Israfilzade, 2023a; 2023b). As a result, effectively
However, there are also challenges associated
managing this delicate balance is critical for fully
with humanizing AI. One significant challenge
utilising the capabilities of Anthropomorphic
is the ethical and psychological implications of
Generative AI in the context of conversational
AI that too closely resembles human behaviour
marketing.
(Israfilzade, 2023b). There is a fine line between
creating AI that is relatable and creating AI that Moreover, there is the risk of over-reliance on AI
is deceptive in its level of human resemblance. for complex emotional interactions, which might
This raises questions about user consent and be better handled by human agents. Balancing
the transparency of AI interactions. Another the use of anthropomorphic AI with human
challenge is the technical complexity involved intervention is crucial to ensure that the AI
in creating sophisticated anthropomorphic AI. enhances rather than detracts from the customer
Developing AI systems that accurately interpret experience.
and respond to human emotions and nuances
requires advanced technology and ongoing
3. DISCUSSION
refinement, which can be resource-intensive. 3.1. Future Directions and Strategies for
Generative AI in Conversational Marketing
Nevertheless, blending anthropomorphic design
with Generative AI in conversational marketing is The recent development of Generative AI stands
not without other hurdles. AI systems that closely as a pivotal force in the dynamic and ever-
imitate human conversation can potentially lead changing landscape of conversational marketing,
to user dissonance and perceptions of deception. poised to redefine how businesses interact and
Over-promising with anthropomorphic design engage with their customers. The following
can generate high user expectations, and any section will go over the horizon of possibilities
failure to meet these expectations can lead that this technology opens up. It aims to shed
to dissatisfaction (Ciechanowski et al., 2019, light on the paths and strategic approaches that
Makany et al., 2023; Hu & Sun, 2023; Ooi et al., businesses and researchers can take to fully
2023). realise the transformative power of Generative
AI. This section will provide insights into how
It is critical to achieve an optimal balance in the
Generative AI can be optimally integrated
use of anthropomorphism in conversational
into conversational marketing strategies, thus
marketing. A comprehensive strategy that goes
improving customer experiences, driving
beyond simply providing AI systems with
engagement, and shaping the future of digital
human-like characteristics is required. To avoid
interactions in the marketing domain.
potential divergence or misrepresentation caused
by exaggerated AI capabilities, conversational 3.1.1. Predicting the Future of Generative AI in
agent design and competencies must be aligned Conversational Marketing
with user expectations. According to Jakesch et
al. (2019), the use of anthropomorphized artificial In the near future, AI is projected to become
intelligence (AI) has the potential to improve the backbone of marketing strategies, driven
interaction quality, increase user satisfaction, by its ability to analyze and synthesize data at
and enable a more efficient marketing strategy. unprecedented scales (Babayev & Israfilzade,
2023). Predictive analytics, powered by AI, will
The primary challenge is striking a balance enable marketers to forecast consumer behaviour
between incorporating desirable human-like with high accuracy, facilitating the crafting of
characteristics and effectively managing user strategies that cater to future consumer demands.
expectations about the AI system’s capabilities. Therefore, Generative AI is poised to catalyze a
Excessive anthropomorphism can lead to the paradigm shift in marketing practices. With its
formation of unrealistic expectations, whereas evolving capacity to create content that mirrors
insufficient anthropomorphism can result in human creativity, Generative AI will enable

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 Journal of Life Economics, Volume/Cilt: 11, Issue/Sayı: 1, Year/Yıl:2024

marketers to craft highly personalized narratives lead to faster and more efficient data processing.
at scale (Shumanov & Johnson, 2021). The future This synergy allows real-time analysis and
will likely see these AI systems not only predict response generation, even in data-intensive
consumer behaviour but also dynamically scenarios. For instance, a retail brand can use
generate marketing materials in real-time, such edge computing to rapidly process customer
as personalized advertisements, written content, inquiries and feedback received across various
and interactive media. These advancements in touchpoints, enabling their Generative AI system
Generative AI will also facilitate the development to provide instant, personalized conversation.
of deep learning models that can understand
Voice technology integration. The incorporation
and adapt to cultural nuances and emotional
of voice recognition and synthesis technologies
undercurrents, making global campaigns more
will make conversational marketing more
effective and resonant.
accessible and interactive, especially through
Generative AI is set to become a cornerstone mobile devices and smart speakers. Customers
of conversational marketing by providing could engage in voice-based conversations with
advanced capabilities to simulate human- AI-powered systems for product inquiries,
like conversations and generate content that support, or even to complete purchases, all
is increasingly indistinguishable from that hands-free.
produced by humans. Looking forward, we
Seamless omnichannel integration. Generative
can anticipate Generative AI to craft not just
AI will enable consistent and continuous
text but also voice and video content that can
customer experiences across multiple channels,
interactively engage consumers in a two-way
from text and email to voice and messaging apps.
dialogue, adapting to the consumer’s responses
A customer’s conversation with a brand could
in real-time and learning from each interaction
transition smoothly from a website chatbot to a
to refine its communication approach.
messaging app or email, with the AI maintaining
The advancement of Generative AI is expected the context across these platforms.
to revolutionize conversational marketing by
Predictive customer engagement. Leveraging
enabling more nuanced and contextually rich
predictive analytics, Generative AI can
interactions. For example, a customer interacting
foresee customer needs and initiate proactive
with an AI-powered chatbot could receive
conversations, offering information or solutions
product recommendations that are not only
even before the customer explicitly asks. An AI
based on their past purchases but also on their
system might automatically send tips, reminders,
current mood, discerned from the sentiment
or promotions based on the customer’s purchase
of their messages. Generative AI could also
history or recent interactions, enhancing
create dynamic marketing campaigns, where
engagement and customer loyalty.
the storyline evolves based on the customer’s
responses, providing a unique and engaging Advanced personalization through machine
narrative for each user. learning algorithms. Generative AI, powered
by sophisticated machine learning models, can
3.1.2. Emerging Technologies and Their
analyze large datasets to understand individual
Potential Impact
customer preferences and behaviour patterns.
In the evolving landscape of conversational This leads to highly personalized marketing
marketing, the integration of Generative AI communications and suggestions. A travel
with other emerging technologies is set to company could use this technology to offer
significantly enhance the way businesses engage personalized travel recommendations based on
with customers. a customer’s previous bookings, searches, and
preferences, all communicated through an AI-
Enhanced data processing with edge computing.
driven conversational agent.
The integration of edge computing with
Generative AI in conversational marketing can

23
Israfilzade & Sadili

Integration of ai with the internet of things. trustworthy. Marketers should also experiment
Internet of Things (IoT) devices promise with different AI modalities, like text, voice,
hyper-contextualized marketing opportunities, and visual AI, to understand which approaches
where consumer needs can be met almost resonate best with different segments of their
instantaneously as devices communicate with audience. Moreover, staying agile and receptive
marketing platforms to deliver a seamless to consumer feedback will be key in refining
consumer experience. The synergy between AI-driven conversational strategies. Lastly,
these technologies and AI will not only amplify marketers must remain informed about the legal
the personalization capabilities of conversational and social implications of utilizing AI in consumer
marketing but also elevate the security and interactions, ensuring that their strategies are not
efficiency of these interactions. only effective but also responsible and aligned
with societal values.
Augmented Reality and Virtual Reality.
Emerging technologies such as Augmented Nevertheless, to effectively leverage Generative
Reality (AR) and Virtual Reality (VR) will AI in conversational marketing, brands should
likely intertwine with Generative AI, creating explore various scenarios and pilot projects.
immersive marketing experiences. For instance, For example, they could test AI-driven
a furniture retailer could use an AR-enabled personalized video messages as part of their
chatbot that not only advises customers on email marketing campaigns, where the content
furniture choices but also visualizes these choices of the video changes based on the customer’s
in the customer’s living space in real-time. past interactions with the brand. Another
Similarly, Generative AI could be used in VR scenario could involve integrating Generative AI
settings to simulate a virtual shopping assistant, with social media platforms to create interactive,
providing a highly personalized and interactive narrative-driven campaigns that evolve based on
shopping experience. user engagement.

As these technologies continue to advance, they In addition, brands should prepare for a future
will empower Generative AI to create more where Generative AI becomes a standard tool in
sophisticated and contextually aware marketing marketing. This involves investing in AI training
conversations, pushing the boundaries of for marketing teams, ensuring data infrastructure
how brands connect and converse with can support AI applications, and staying abreast
their audience. By focusing on these areas, of ethical considerations in AI usage, such as
businesses and researchers can harness the full ensuring transparency and avoiding biases in
potential of Generative AI in conversational AI-generated content.
marketing, creating more meaningful, efficient,
The potential scenarios for Generative AI
and personalized customer interactions. As
in conversational marketing are vast and
technology evolves, these applications are
varied. From creating personalized shopping
likely to become more sophisticated, further
experiences to crafting interactive, evolving
transforming the landscape of digital marketing.
marketing narratives, Generative AI stands to
3.1.3. Preparing for the Next Wave: Strategies significantly enhance the way brands interact
and Recommendations with their customers. As these technologies
continue to develop, they will offer brands
To navigate the upcoming advancements in
unprecedented opportunities to engage with
Generative AI within conversational marketing,
their audience in more meaningful, personalized,
brands should consider several strategic actions.
and effective ways.
Firstly, investing in talent and infrastructure that
support the integration of Generative AI will Implications of Generative AI and
be essential. Secondly, establishing robust data Anthropomorphism Levels on Conversational
governance and ethical guidelines will ensure Marketing. Applying the insights from the
that AI interactions remain transparent and “Creating a Conversational Marketing Matrix

24
 Journal of Life Economics, Volume/Cilt: 11, Issue/Sayı: 1, Year/Yıl:2024

for Intersections of AI and Anthropomorphism” might initially attract and engage users, the
study (Israfilzade, 2023b) can offer valuable limited conversational capabilities could lead to
recommendations for both researchers and a disconnect, as the interaction might not live up
managers in the field of conversational marketing. to the human-like appearance.
Therefore, the matrix presents a strategic
Almost Human (High Generative AI & High
framework delineated into four quadrants,
Anthropomorphism): In this quadrant, AI
each quadrant in the matrix represents a unique
systems are both advanced in content generation
blend of Generative AI and anthropomorphism,
and highly anthropomorphized. They can
painting a complex picture of how various
conduct conversations that closely mimic human
combinations affect conversational marketing
interactions, both in content and emotional
tactics.
intelligence, creating a more engaging user
experience. However, the challenge here lies
in balancing human-likeness without crossing
into the uncanny valley, where the AI is so
human-like that it becomes eerie or unsettling,
potentially disconcerting users.

Silent Genius (High Generative AI & Low

Anthropomorphism): This quadrant describes
AI systems that are highly intelligent and capable
of generating dynamic, contextually relevant,
Figure 2. The Conversational Marketing Matrix: and personalized content, yet they do not have
Intersections of AI and Anthropomorphism a strong human-like appearance or character.
Source: Israfilzade (2023b) They are highly functional and can manage
complex tasks and interactions effectively.
Here is a more detailed explanation of the four
The focus here is on capability rather than
quadrants:
appearance, prioritizing function and efficiency
Digital Clerk (Low Generative AI & over relatability.
Low Anthropomorphism): This quadrant
To put it simply, for brands to successfully
characterizes the most basic form of AI interaction
navigate the evolving landscape of Generative
within conversational marketing. Entities in this
AI in conversational marketing, it is critical to
category function primarily as utilitarian tools,
focus on strategic infrastructure investments,
handling straightforward, rule-based tasks.
adhere to ethical guidelines, and embrace diverse
They provide factual information without the
AI modalities, all while remaining attentive
embellishments of a personalized experience.
to consumer feedback. The “Conversational
While these digital assistants are efficient for
Marketing Matrix” provides a strategic
simple, transactional customer interactions, they
framework for distinguishing the interaction
do not offer the nuanced engagement that comes
between Generative AI and anthropomorphism,
with more advanced AI or anthropomorphic
which is critical for developing effective and
features.
diverse marketing strategies in this dynamic
Humanoid Echo (Low Generative AI & High field.
Anthropomorphism): Here, the AI entities are
designed to appear human-like, perhaps in
4. CONCLUSION
avatars or through human-sounding names and This paper discusses the evolution from
personas, but their ability to generate content traditional marketing strategies to the emergence
and responses is still relatively basic. They and sophistication of conversational marketing,
may echo preset dialogues or responses that which has been reinforced by advancements in
can seem human on the surface but lack depth. artificial intelligence and digital technologies.
While the high level of anthropomorphism

25
Israfilzade & Sadili

In the field of conversational marketing, the consent and preferences must be respected in
inclusion of generative artificial intelligence has these interactions.
proven to be a game-changer, as it has enabled a
The future predicts AI as a key element in
previously unattainable level of personalisation,
marketing, with its ability to create personalized,
real-time interactions, and dynamic customer
real-time content and understand cultural
engagement. Consequently, this development
nuances. Emerging technologies like edge
represents a significant shift away from reactive
computing, voice technology, and AR/VR
customer engagement strategies and towards
will further augment its impact, offering
proactive ones.
sophisticated, context-aware marketing
This approach transforms the traditional one- conversations. Strategic recommendations
way marketing communication into a dynamic include investing in AI infrastructure and
two-way interaction, emphasizing customer- talent, ethical AI usage, and exploring AI-
centric engagement, real-time response, driven marketing scenarios. The intersection
personalization, and adaptability. It leverages of Generative AI and anthropomorphism in
omnichannel presence and automation for conversational marketing presents a nuanced
scalability, ensuring contextual understanding matrix of strategies, balancing functionality and
and maintaining transparency to build trust. relatability in customer interactions.
This methodology marks a significant shift in
Finally, conversational marketing, which
marketing strategies, fostering deeper, more
employs generative artificial intelligence,
meaningful connections with customers.
represents a significant step forward in the way
The paper also discusses the ethical and that businesses interact with their customers. As
psychological implications of artificial the industry continues to develop, it is essential
intelligence that closely resembles human to maintain a balance between the advancements
behaviour, and it investigates the balance that in technology and ethical considerations. This
must be struck between humanising artificial will ensure that artificial intelligence (AI)
intelligence and maintaining transparency in contributes to the human element in marketing
customer interactions. Furthermore, the paper rather than taking away from it. The potential of
addresses the challenges that are involved this technology is enormous, and it promises to
in the process of developing sophisticated completely transform customer interactions by
anthropomorphic AI systems, such as the ethical making them more personalised, efficient, and
considerations and technical complexities that impactful. Nevertheless, in order to successfully
are involved in the process. The paper highlights navigate this environment, one must take a
the benefits of anthropomorphic AI in terms of thoughtful approach, one in which innovation
improving user experience and engagement. In is paired with responsibility and a profound
addition to this, it investigates methods that can comprehension of the constantly evolving
be utilised to effectively manage the equilibrium demands and expectations of the customer.
that exists between human-like characteristics
and user expectations in artificial intelligence
systems.

Nevertheless, as AI becomes more sophisticated

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