How AI is advancing advertising and changing consumer engagement

How AI is advancing advertising and changing consumer engagement

Artificial intelligence (AI) is revolutionizing consumer engagement and transforming the landscape of search, according to James Murray of Microsoft Advertising, who spoke at SMX Advanced.

Here are the key points he raised in his presentation, exploring the paradigm shift in search technology and its implications for advertisers and marketers.

The expanded search box: A gateway to nuanced queries

Murray highlighted a seemingly small but significant change in search: the expansion of the search box: 

“What have we done or what has changed? Well, a lot has changed. In fact, we think that we have completely shifted the paradigm of what search means and what is possible with search.

“And I’d say one of the biggest and most fundamental changes through AI is that we’ve changed search from this to this. We’ve made the box bigger.”

From:

To:

This physical enlargement represents a fundamental shift in how users can interact with search engines.

No longer confined to short keyword phrases, users can now express complex, nuanced queries that more accurately reflect their true intentions.

For example, instead of searching for “cheap holiday Rome,” users can now input detailed requests like:

“Could you provide a Rome weekend itinerary for a family of 2 adults and 2 children aged 6 and 4. We want a mix of historical culture and fun activities, and the kids want to eat as much pizza as possible.”

This level of detail allows AI-powered search engines like Microsoft’s Copilot to understand context and provide more relevant, comprehensive responses.

Murray said:

“Up until very recently, it has just not been possible in the sense that whilst we have always had the capability to put in these very large, very nuanced searches, the results that we get would often be confused or or just unintelligible.

“Now, we’re in a situation where search through AI, through these new conversational capabilities, can actually not only understand a very complex query but can give us a meaningful reply that actually answers what we’re looking for.

“So this is an example within the Microsoft ecosystem of Copilot. And so you can see that it has taken what I’ve given it, and it’s actually started to put together an itinerary, going to the Colosseum, going to see various bits of what Rome has to offer.”

AI’s Impact on search capabilities

Murray then explored the key advancement of integration of AI into search:

Synthesis and summarization: AI can quickly process and synthesize information from multiple sources, providing concise, relevant answers to complex queries.

Murray explained:

“If we look at that example which I just gave (trip to Rome), we start with this very dense, rich and sort of multifaceted, query on the left.

“Copilot is able to simulate all of that information. But in the background, this would have taken us previously, in normal search, multiple iterations, multiple searches (see right) to pull together that same information. Whether it’s looking for family activities or what to see, history tours, the best place to get pizza in Rome, and so on.

“And so what we’re seeing is, that from a consumer perspective, this does a number of things.

“One is that it enables people to say what’s on their mind, but it enables them to get to answers quicker.”

Understanding true intent

AI-powered search engines aim to understand the underlying question behind a query, going beyond literal interpretation to grasp context and user intent.

Current search engines often provide broad, surface-level answers, but struggle to understand the deeper intent behind user queries.

For example, when someone searches for “Cancun weather in March,” the real underlying question might be about what to pack for a trip.

Murray said that search engines should evolve to better grasp and address the true, more nuanced intent behind users’ searches, rather than just offering basic information and related suggestions:

“Wouldn’t it just be easier if we could say, ‘can you just pack, and make me a packing list and organize it by which room in the house I’m most likely to find those items?’

“And to showcase how that can come to life and the reality of how we can get to the underlying question where we don’t have to read between the lines anymore because when people can actually ask what’s truly on their mind, and we can give them a sensible answer.

“It allows that freedom to be able to most relevantly match to what people are actually asking for.

“And so, really, what we’re seeing is this evolution of people being freed to ask the questions that they’ve always wanted to but, you know, perhaps haven’t felt comfortable of being able to do and the search engines being able to respond with much deeper, and much more nuanced and relevant answers.”

Evolution of AI search usage

Murray outlined three stages in the adoption of AI search tools:

Initial curiosity (2023): Users explored the capabilities of AI tools, testing their limits and discovering new opportunities.

Knowledge and action: As users became more familiar with AI tools, they began to find new use cases and develop greater proficiency.

AI in action (2024 and beyond): Users are becoming increasingly comfortable with AI tools and are extracting tangible value from them in their daily lives and work.

New possibilities for users and marketers

He then took us on the journey of how the advent of AI-powered search has opened up new avenues for users and marketers:

Expanded capabilities

Users can now perform tasks that were previously impossible or time-consuming, such as generating content, analyzing data and writing code.

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