The marketing world is at a crossroads. While the promise of AI looms large, many Chief Marketing Officers (CMOs) are struggling to see tangible results. A recent study reveals a stark contrast between high expectations and disappointing outcomes. But why? Let's dive in.
According to the Capgemini Research Institute's CMO Playbook, the role of the CMO is undergoing a significant transformation. The pressure is on, with CMOs facing increased demands, tighter budgets, and a complex technological landscape. Despite the hype around generative and agentic AI, the reality is often underwhelming.
The Ineffectiveness Dilemma:
- A mere 15% of marketing leaders strongly agree that their current setup allows them to excel in high-value work.
- Even though 7 in 10 organizations use generative AI, only 7% of marketers strongly believe it has boosted marketing effectiveness.
- Only 18% of marketing leaders are confident in their ability to personalize customer interactions using AI to improve engagement.
This paints a clear picture: the potential of AI is recognized, but the execution is falling short. Many marketing teams are still bogged down in manual tasks, leaving little time for strategic initiatives like brand building and innovation.
The Budget and Influence Paradox:
Marketing budgets are shrinking, averaging just 5% of company revenue, while the responsibilities of CMOs are expanding. Furthermore, the involvement of CMOs in critical decision-making has decreased from 70% to 55% in just two years. This shift highlights a critical challenge: CMOs are expected to drive growth, but their influence is waning.
Collaboration is Key:
The report emphasizes the need for stronger collaboration between CMOs and CIOs. With less than 40% of CMOs controlling martech budgets, aligning technology and marketing strategies is crucial for AI-driven success. This collaboration ensures that data, systems, and teams work together to deliver measurable business value.
AI: A Growth Driver with Limited Impact:
While almost 70% of large organizations use Gen AI in marketing, its impact remains limited. Only 7% of marketers strongly agree that AI has boosted marketing effectiveness. Moreover, the report highlights the cautious approach towards agentic AI, with nearly 70% agreeing on its potential but few actively testing or using it. The main challenges cited include the lack of the right skills, data privacy concerns, security risks, and ethical considerations.
Rethinking the Future of Marketing:
The report suggests that CMOs must redesign their operating models and integrate AI across the entire marketing value chain. This involves:
- Integrating sales and go-to-market strategies.
- Strengthening collaboration between CMOs and CIOs.
- Investing in the right AI skills.
- Enabling human-AI chemistry.
But here's where it gets controversial... The report highlights the need for CMOs to reposition themselves as drivers of customer experience and engagement. Is this a realistic expectation, or is it setting CMOs up for failure?
And this is the part most people miss... The importance of human-AI chemistry. Seamless integration of AI agents working together with humans, under human control, is crucial for successful enterprise operations.
What do you think? Are you seeing these trends in your own organization? Share your thoughts in the comments below! Do you agree or disagree with the report's findings? Let's discuss!
Methodology: The Capgemini Research Institute conducted a survey in July 2025, involving 1,500 executives and ~30 CMOs and marketing leaders across 15 countries. The organizations surveyed have annual revenues of $1 billion or more. 'Strongly agree' reflects respondents who selected 5 on a scale of 1-5.
About Capgemini: Capgemini is an AI-powered global business and technology transformation partner with nearly 60 years of experience and 420,000 team members in over 50 countries. The Group reported 2024 global revenues of €22.1 billion.
About the Capgemini Research Institute: The Capgemini Research Institute is Capgemini’s in-house think-tank on all things digital. It was ranked #1 in the world for the quality of its research by independent analysts for six consecutive times.
