Braze has released two studies highlighting a significant gap in the effective use of artificial intelligence (AI) for customer engagement, indicating many brands are struggling to convert their AI investments into tangible results. The findings come at a time when organizations are increasingly pressured to justify their marketing budgets while dealing with a deluge of data and content.
The first study, conducted by Forrester Consulting, revealed that companies utilizing the Braze platform experienced an impressive 457% return on investment over three years, with a net present value of USD $23.5 million and a payback period of less than six months. This analysis was based on interviews with various customers to construct a composite organization representing the typical user of Braze’s services.
A second study, in collaboration with Cowry, examined larger trends in digital marketing and customer engagement. It found that consumers are bombarded with up to 10,000 commercial messages daily, which increases the urgency for brands to enhance the relevance and timeliness of their marketing efforts. The reports suggest that merely increasing content production is insufficient for improving customer engagement; brands must also focus on decision-making and orchestration.
Braze posits that, despite nearly universal AI adoption, only a minority of organizations are seeing measurable returns. This reflects a broader discussion within the marketing technology sector about the efficacy of heavy AI investments. The research pointed to a divide between companies that actively integrate AI into live customer journeys and those that treat it as a separate initiative. Stronger performers quickly act on first-party data and employ decisioning tools in real-time campaigns, marking a notable departure from traditional batch campaigns.
The implications for marketing teams are significant, urging a shift in focus from merely increasing output to enhancing operational effectiveness. Consolidating tools and reducing fragmentation can lead to faster decision-making, enabling teams to concentrate on conversion, retention, and revenue. This approach provides executives with clearer metrics to assess the effectiveness of AI investments.
As brands increasingly adopt AI tools for content generation, the studies underscore that effective customer engagement hinges on strategy rather than sheer volume. The emphasis is shifting towards real-time decision-making about what to send, when to send it, and to whom, utilizing live data rather than adhering to fixed campaign plans.
Astha Malik, Chief Business Officer at Braze, articulated that the challenge lies more in execution than in the adoption of AI technologies. “While AI-generated content is potentially infinite, customer attention is finite and loyalty is fragile. Every piece of ‘AI slop’ that reaches a customer simply trains them to tune out,” she stated. Malik emphasized that the widening performance gap between brands merely focused on output and those striving for measurable outcomes is becoming increasingly pronounced.
“The research we’re releasing today highlights a widening gap between brands using AI just to increase output and those focused on driving outcomes like conversion, retention, and revenue,” Malik added. “At Braze, we are shifting the conversation from productivity to performance. Our community of ambitious marketers chooses a premium platform not just to build faster, but to deliver outsized business impact.”
Taken together, the findings from Forrester and Cowry suggest that the next phase of AI utilization in marketing will be evaluated not just by adoption rates, but by brands’ abilities to translate data, timing, and decision-making into enhanced customer responses and measurable financial returns. As the landscape continues to evolve, organizations that successfully integrate AI into their operational processes are likely to gain a competitive edge in an increasingly crowded market.
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