Why Investors See Potential in Advertising Tech Companies That Generate Copy and Use AI

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Complex artificial intelligence systems For example, OpenAI GPT-3 can write prose that is impressively human-like, or at least good enough to fool the average person. They have been used to create essays, poems, short stories, news reports, and more. impressive effect. It may have only been a matter of time before entrepreneurs saw the opportunity to use such systems to write marketing copy.

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The scale of AI makes it great for advertising. Copywriting is a labor-intensive job, and artificial intelligence theoretically never stops working. But an even bigger advantage is personalization. AI systems can target ad text to specific customer segments or even individual customers, making them more powerful. At least in theory.

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Based on 2021 data interview according to Phrasee, 63% of marketers would consider investing in AI to create and optimize ad copy. Admittedly, this is a biased conclusion – Phrasee sells artificial intelligence copying software. But vendor-independent analytics firm Statista reports that 87% of current AI users are already using or considering using AI to predict sales and improve their email marketing.

In any case, investors are optimistic about this idea. Copyist Last April, the company received $10 million in funding for its artificial intelligence-based β€œcreative content” platform. Copy.aia competitor developing similar algorithm-based copywriting tools for businesses closed a $10 million round in October.

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To sort out the enthusiasm for copy technology, TechCrunch turned to venture capital partners who have been investing in startups in the nascent field over the past two years. We spoke with Sandya Venkatachalam, AI and Machine Learning Startup Partner at Khosla Ventures and Zach DeWitt, Wing Venture Capital Partner.


Credit: techcrunch.com /

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