David A. Steinberg, co-founder, chairman, and CEO of Zeta Global, has been pushing the boundaries of artificial intelligence (AI) in marketing since 2017. In a recent episode of The Speed of Culture podcast, Steinberg discussed how Zeta has established itself as a pivotal player in the marketing technology (martech) landscape, serving 51% of the Fortune 100. He emphasized the company’s role as a disruptor, rather than a victim, of a rapidly changing sector.
Zeta’s transformation began with a realization in 2017 that the explosion of data they were processing was outpacing their ability to make meaningful decisions. This insight led to the company placing AI at the core of its operations years before it became a mainstream industry conversation. With a comprehensive data cloud containing 552 million opted-in individuals and an average of 5,000 to 7,000 data elements per person, Zeta is well-positioned to leverage AI for actionable insights.
One of the standout offerings from Zeta is Athena, a voice-enabled AI copilot developed in partnership with OpenAI. Athena is designed to facilitate seamless communication between users and AI, capitalizing on humans’ historical preference for voice interaction over typing. During the podcast, Steinberg noted that previous iterations of voice tools, such as Zoe, significantly increased client spending on the platform, validating their approach. Athena’s design allows for conversational interactions, enabling users to maintain context even while switching platforms.
Steinberg also outlined the internal changes required to embed AI within Zeta’s operational framework. Rather than mandating adoption, the company recognized and celebrated employees who effectively utilized AI tools, which fostered an environment of collaboration and innovation. Teams were restructured into pods led by top talent in AI, resulting in a marked increase in engineering output. However, Steinberg candidly acknowledged that some employees who resisted the shift were let go, allowing the company to focus on those who embraced the transformation.
The podcast further explored the implications of generative AI and its impact on consumer reach. Steinberg pointed out a notable shift in search behavior, with 60% of queries resolved directly on platforms like Google, compared to just 3% a year ago. This structural change poses significant challenges for brands trying to connect with consumers, prompting Zeta to develop a generative engine optimization platform to help clients integrate into AI-driven search results.
As the marketing technology sector grows, Zeta’s performance stands out. While the industry saw an average growth of 10% last year, Zeta achieved a remarkable 30% growth. Steinberg attributes this resilience to Zeta’s unique advantages, including a proprietary data cloud that has never been integrated into large language models and a business model that generates substantial returns for clients. This distinctive approach positions Zeta as a revenue center rather than a cost center in client discussions.
Steinberg also shared his philosophy on navigating crises, a mantra inspired by Machiavelli: “never let a crisis go to waste.” He pointed to the COVID-19 pandemic as a recent example, where Zeta quickly adapted to remote work and other operational challenges. By acting on early signals, the company not only sustained growth during a tumultuous period but also outperformed many competitors who struggled to adjust.
As Zeta continues to innovate and grow, Steinberg’s insights underscore the importance of adaptability and foresight in the AI-driven future of marketing. The company’s commitment to leveraging data and AI is likely to position it as a key player in shaping the next generation of consumer engagement strategies.
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