The role of AI in improving marketing practices in local SMEs

Abstract

This study seeks to investigate the use of Artificial Intelligence (AI) in the marketing of Maltese Small and Medium-sized Enterprises (SMEs). There is a vast body of research on AI-driven marketing tools used across various countries. However, there are a very limited number of documents that relate specifically to Malta. For this reason, this study aims to fill this gap in the literature. The main objective of this study is to explore which AI-powered tools are being used for marketing purposes in local SMEs. It also aims to investigate how these tools improve marketing efficiency and effectiveness as well as customer retention and loyalty. The study focuses in particular on marketing automation through content generation and personalisation. In order to meet the specific requirements of this study, a qualitative research methodology was chosen, in particular data collection through semi-structured in-depth interviews. Eleven participants from various Maltese SMEs took part in these interviews. The responses provided valuable insights into the use of AI-driven tools in the marketing of Maltese SMEs. The insights gained from the participants were then analysed and discussed. Finally, conclusion and recommendation for future research were drawn. The results of this study show that while there are many AI tools available for marketing purposes, Maltese SMEs mainly use ChatGPT. The research found that this and other AI tools mentioned by marketers increase the efficiency and effectiveness of marketing. Furthermore, only a limited number of Maltese SME marketers are using AI to personalise their marketing campaigns. However, those who use AI or intend to use it in the future believe that such tools increase customer satisfaction and willingness to engage with a business. The study concludes that various AI tools are widely used by Maltese SMEs marketers, yet there is potential to further improve marketing using other AI tools, especially in terms of content personalisation.