Advertising in transition: from apps to AI assistants

Smartphones without apps? Will AI assistants take over and support us everywhere? And what does this mean for the advertising industry? We asked ourselves how practical or helpful relying on AI assistants will be.  And to get some answers we thought we would ask the horse`s mouth, and interviewed Chat-GPT to get its view.

Deutsche Telekom presented new smartphone prototypes at the Mobile World Congress in Barcelona in March this year. Instead of apps, the phones feature an AI-based voice activated assistant called “The Concierge”.  Up until now, voice activated assistants were limited to answering simple questions and performing phone related tasks. As an example of the next-generation, the Concierge can also  book an entire trip:  flights, hotels, and restaurants to your liking.

Sounds cool, right? A seriously simplified phone display that does absolutely everything I need! And I won't need to buy or install other apps that get lost in the icon clutter. At first it does sound attractive, but when we think about it further, we do have some questions. And because no one really knows what will happen, who better to answer our questions than our current AI assistant with all the answers, Chat-GPT.  As a big player in the industry, it  will know.

Life without "AareGuru" and "Fooby"?

One of my favourite apps is "AareGuru," which tells me about the Aare River and its current water temperature. Being Bernese, this is crucial for deciding whether to take a plunge into the freezing-or-only-cold water. My other favourite is "Fooby," which has often inspired me when I'm indecisive at the supermarket.

What I like most about these two apps is their convenience, vibrant colours, and familiar interface providing reliable information and delicious recipes. They look great and function smoothly, but also prioritise security. And because I know where their information comes from, I trust both accuracy of the information  and safety of the app.

In the future, will AI assistants tell me the water temperature at the right moment and suggest recipes? From where will this information be sourced to make sure it is accurate?  Other apps sometimes come from institutions or organisations, such as schools – how will the AI assistant get access to the data to answer my questions? Here's what Chat-GPT has to say:

The question of trust in an AI like me is absolutely justified. There are often well-known companies behind apps that you trust as a consumer. Building trust in an AI requires transparency, data protection and reliability. It is important that I treat your data securely and always provide you with accurate, useful information. Likewise, independent assessments and continuous improvements to my skills should build your trust. The key lies in the transparency and consistent reliability of my services.

The answer from Chat-GPT doesn't make it any easier for me to say goodbye to my favourite apps. One of the reasons why I like my apps, is I know which companies are behind them, and who will take responsibility for a problem or inaccuracy. Chat-GPT, and other AI tools, tend to be somewhat sycophantic – it will do and say anything to make me feel satisfied, even when it provides false information. 

What will AI assistants mean for SMEs?

This technology is developing rapidly, and reliance on AI assistants will radically change the advertising industry. AI assistant formats are designed to integrate advertising into our everyday lives in a more relevant and useful way and take personalization to the next level.  So what does the switch from Google and apps to AI assistants mean for the advertising industry?

"A profound change" – in the words of Chat-GPT. Advertisers will work with AI assistant manufacturers to ensure that their products and services are integrated into AI assistant recommendations and interactions. This is probably what the advertising opportunities of the future will look like, although the form in which you receive them is not yet clear:

• Contextual ads: Ads that appear exactly when they are most useful. The AI assistant recommends a restaurant and recommends dishes that suit my taste or the time when the restaurant is not too full.
   
• Personalised recommendations: Users receive advertising based on their behaviour and preferences. For example, personalised book recommendations including a discount code for bookworms – or exciting information about the authors, the origin of the book, historical accuracy, fan groups, etc.  
   
• Interactive advertising: Users can interact directly with advertising formats, ask questions and receive answers immediately: A mountaineer is interested in new hiking boots. The AI assistant presents an interactive conversation with a specialist to find the right shoes. The user receives a personalised offer based on her preferences. 
• Voice ads: Audio advertising while using the assistant, similar to radio advertising but more targeted. The AI assistant presents a personalised news selection every morning and suggests a newly opened local café. 
   
• Content sponsorship: Brands could offer sponsored content that the AI assistant presents as relevant information. When asked for recipes, the AI assistant suggests a recipe from a specific food brand, including a discount code for the ingredients in the brand's online store.

SEO Keywords. Apps. Advertising. Social Media.

Many people are asking the question, where will AI assistants source their information - and will a small company be seen? How will  AI become aware of the content of smaller companies? Many SMEs write blogs and publish on social media to feature higher on internet searches, so is it still worthwhile for us to write blogs? What will social media do? And how will we inform ourselves in the future? Our virtual interlocutor writes: 

Today, Chat GPT and co. mainly refer to information of American origin. They are easily accessible to current AI tools and are recorded on a large scale. This should change in the future. Information from different countries and cultures should be incorporated in order to offer customers broader perspectives. Gemini is probably already ahead of the game here and has access to much more content, including content in foreign languages. 

Smaller companies also have a chance of being included in the AI source corpus if they meet the following criteria:

• Reputation: Established and recognized sources
• Transparency: Disclosure of information sources and methods
• Quality: Well-researched, fact-based and objective content
• Consistency: Regular and reliable publication of content
   

But can AI source information from smaller websites and organisations when they are competing against much bigger, well-oiled machines? Whether blog posts have a chance of being seen cannot be answered conclusively at present. According to Chat-GPT, the system will also not work monetarily – except for the sponsored content mentioned above:

There will be no fees for the inclusion of content. My aim is to provide a broad and balanced information base, regardless of the source.

What is certain is that it will be even more important in the future to offer high-quality content for specific target groups. 

Life in the bubble

Chat-GPT admits that technology also harbours risks for us as individuals. When asked how I can still discover something new with all this personalization, Chat-GPT answers: 

If you're only shown content that interests you, you could be living in an information bubble. This deprives you of the chance to discover new things and get to know different perspectives. To counteract this, AI assistants could deliberately suggest diverse content that goes beyond your usual interests. A balance between personalised content and random discoveries would be ideal to encourage curiosity and diversity.

Chat GPT draws on various sources to suggest topics that are outside our usual habits. The AI does not become more specific, but does not rule out the danger of a more depersonalised world through AI assistants.