Artificial intelligence has promised to transform marketing—boosting efficiency, scaling personalization, and driving smarter decisions. But for most companies, the reality hasn’t matched the hype. Despite widespread adoption, the majority of organizations are still waiting to see meaningful ROI from their AI-driven initiatives.
Key Takeaways:
- Only about a fourth of companies have moved beyond pilot projects to realize tangible value from AI.
- Poor data quality, limited internal expertise, and scalability challenges are the biggest barriers to success.
- Teams that invest in training, technology, and organizational alignment are seeing the highest gains in marketing ROI.
The good news? Those who take a measured, strategic approach are beginning to unlock AI’s real potential.
In marketing and sales specifically, organizations investing deeply in AI see sales ROI improve by 10–20% on average (McKinsey)
Here are a handful of carefully curated stats that look at why ROI from AI marketing is difficult to achieve—and what successful companies are doing differently.
Many Companies Still Don’t See Expected ROI From AI
Despite heavy investment in artificial intelligence, a majority of firms are struggling to realize the expected return on investment (ROI) from AI-driven marketing initiatives:
- Only about one in four companies has moved beyond pilots to generate tangible AI value—meaning roughly 74% have yet to show real ROI from their AI use (BCG)
- 47% of companies report their AI projects are profitable, with about one-third merely breaking even and 14% actually seeing negative returns (CIO Dive)
- Among companies not yet seeing ROI, 56% don’t expect significant savings for at least 1–2 years (IBM)
- 74% of enterprises aren’t capturing sufficient value from their AI initiatives (Deloitte)
- In 2023, just 54% of AI projects even made it past the pilot phase, and many of those that did “fail to deliver on the promised financial or operational impact.” (Gartner)
Clearly, a large share of companies are investing in AI but not yet reaping the expected rewards, highlighting a significant gap between AI’s potential and its realized value. This “AI value struggle” is especially evident in marketing: While AI-powered tools can boost engagement and efficiency, many marketing teams still fail to translate these gains into bottom-line impact.
Common Challenges in Implementing AI Effectively
Why do so many AI projects fall short of their expected ROI? Experts point to a number of recurring causes that can lead to projects being deemed failures or dropped before they have time to show ROI:
- Inadequate or unprepared data is a top reason AI projects fail. Studies show data issues consume 80% of AI project work and can derail outcomes (CDO Times)
- 43% of companies found that data quality/readiness was the number-one obstacle hindering AI success (Informatica)
- 39% of companies cited strategy, adoption, and scaling issues as their biggest roadblocks to AI ROI (Deloitte)
- 35% of companies cite lack of skilled talent and data literacy as a major barrier to getting value from AI (Informatica)
- Only about half of AI projects make it to production deployment (Informatica)
- 85% of AI projects were predicted to deliver erroneous or biased outputs due to mismanaged expectations and data issues (CDO Times)
- Companies often underestimate AI deployment costs and infrastructure needs by as much as 10x, leading to scalability issues down the road (CIO Dive)
- Less than 1% of organizations feel fully prepared to adapt to new AI-related laws over the next five years (Accenture)
- 45% of organizations believe there’s better than a one-in-four chance of a major AI incident occurring in the next 12 months (Accenture)
In summary, data, technology, people, and governance hurdles all make it challenging to implement AI effectively in marketing. These barriers help explain why so many companies struggle to see value—but they can be overcome with the right strategies.
Improving AI-Driven Marketing ROI
While the challenges are real, there are clear patterns among organizations that succeed in getting strong ROI from AI:
- Organizations that trained employees in AI reported a 43% higher success rate in deploying AI projects (Information Week)
- In marketing and sales specifically, organizations investing deeply in AI see sales ROI improve by 10–20% on average (McKinsey)
- Leading companies achieved 1.5× higher revenue growth and 1.4× higher returns on invested capital over three years compared to peers, thanks in part to AI leverage (BCG)
- Leaders successfully using AI follow the rule of putting 10% of their resources into algorithms, 20% into technology and data, and 70% in people and processes (BCG)
While a large percentage of companies have struggled to see the expected ROI from AI in marketing, the situation is not hopeless. Understanding why AI initiatives fall short—from data problems and talent gaps to poor planning—is the first step.
With targeted fixes like better data prep, clear use-case definition, team training, and iterative scaling, businesses can close the “ROI gap.” When AI is implemented effectively, it can drive impressive marketing outcomes. ROI may remain elusive for some now, but with the right approach, more companies can unlock the true value of AI in the near future.
FAQs About AI Marketing ROI
What is AI marketing?
AI marketing is the use of AI concepts and models to execute marketing strategies and campaigns that achieve business goals. When properly integrated, AI marketing can sort through massive volumes of data and quickly analyze patterns, making it easier to target audiences more precisely.
What are common use cases for AI in marketing?
There are numerous ways that AI can be used in marketing, but McKinsey reports that leaders believe these three use cases are expected to be the most impactful:
- Lead identification, such as determining which customers are most likely to buy based on their brand affinity
- Marketing optimization, such as automatically deciding the right send time or channel for a message
- Personalized outreach, such as using chatbots or virtual assistants to communicate with customers
How can AI improve marketing ROI?
Research shows that the most effective companies are improving their marketing ROI with AI by elevating their operations in the following areas:
- They have a clearly defined AI vision and strategy
- They’re investing more than 20% of their digital budgets in AI-related technologies
- They employ data scientists and strategists to run algorithms that enable hyper-personalization
What should I look for in AI marketing tools?
One of the most important factors to look for in an AI-powered marketing platform is what’s known as Explainable AI, which involves transparent systems with clear, understandable processes.
Unlike the opaque, black box of certain AI solutions, Explainable AI provides a more “glass box” experience that shares deeper insights into the data that powers predictions. Iterable’s AI Suite integrates Explainable AI within its Brand Affinity and Predictive Goals to gauge customer sentiment and gain insights into what drives your predictive goals.
Learn more about our approach to Explainable AI.
Make Iterable Your One-Stop Shop for AI Resources
Whether you’re just getting started augmenting your marketing with AI or looking to uplevel your program, Iterable is here to help. We have a variety of strategies, tools, and step-by-step how-tos that will empower your team to integrate AI.
Check out our AI marketing resources hub to learn how your team can use AI to work smarter and more efficiently.
