Generative AI in Marketing: Promises, Perils, and Public Policy Implications

By evaluating the pattern of generative AI (GAI) use by businesses in marketing, this study aims to understand the subsequent impact on society and develop policy implications that promote its beneficial use. To this end, the authors develop an organizing framework that contends that the usage of GAI models by businesses for marketing purposes creates promises and perils for society through a specific business process. This business process is represented by the action -> capabilities -> transformation -> impact link in the proposed framework. Additionally, the authors find that the level of technology infrastructure, skilled personnel, and data access moderates the influence of GAI on businesses' ability to develop technology-driven capabilities. Furthermore, adaptive leadership and management strategies moderate the impact of these capabilities on technology-enabled business transformations. This research is the first study to critically evaluate the use of GAI in marketing from a public policy perspective. The study concludes with an agenda for future research.