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AI Algorithms: Here’s Everything Marketers Need to Know

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What are AI algorithms?

AI algorithms are instructions that enable machines to learn, analyze data, perform tasks, and make decisions. An AI accomplishes a task because of specific algorithms.

Artificial intelligence (AI) has become a buzzword in many industries as its use cases expand. Even among the marketers we surveyed, half already use AI in their campaigns.

AI uses algorithms to learn and perform tasks that it’s intended to do. You likely use AI algorithms in your everyday life, too.

AI algorithms work behind the scenes of your online search, enabling you to find the information you need. Virtual assistants like Alexa also use AI algorithms and machine learning to understand your language!

To help you further understand how AI algorithms work, this blog post will go through these topics:

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What is an AI algorithm?

An AI algorithm is a set of rules that enables computers to independently learn, analyze data, perform tasks, and make decisions. Without AI algorithms, a computer can’t perform supposed functions that typically require humans.

How do AI algorithms work?

AI algorithms work by receiving training data that they use to learn. They identify patterns, recognize behaviors, and accomplish tasks based on their training data.

For example, AI algorithms may be trained to detect which prospects will likely convert based on their visited pages and interactions with your website.

Some types of AI algorithms can learn independently — they can process new data and refine their processes. Other types need human intervention to learn from new data and streamline processes.

3 types of AI algorithms

Now, let’s discuss the three most common AI algorithms:

  1. Supervised learning algorithms
  2. Unsupervised learning algorithms
  3. Reinforcement learning algorithms

In some cases, different types of AI algorithms — such as supervised and unsupervised — are used together to perform tasks and generate the best results.

Let’s dive into each type of AI algorithm:

1. Supervised learning algorithm

Supervised learning is the most popular type of AI algorithm. This algorithm learns from a labeled data set, where input data is associated with the corresponding correct output. This AI algorithm is typically used to make predictions and classify new data.

It’s called “supervised learning” because this AI algorithm has a team of humans that supervises it by evaluating and reviewing its results. Data scientists test the models that supervised learning AI algorithms create to catch any errors and ensure their accuracy.

Supervised learning’s use cases in marketing

Supervised learning AI algorithms can be trained to predict future actions from your website visitors, prospects, and customers. Based on past website interaction data and past customer data, you can predict which site users will:

  • Further interact with your brand and those who will bounce off
  • Purchase based on past customer data
  • Repurchase from you

2. Unsupervised learning algorithm

Unsupervised learning AI algorithms work with raw, unlabeled data to identify patterns and correlations, and extract relevant insights. Simply put, unsupervised learning doesn’t have human supervision that verifies the model’s results.

Unsupervised learning’s use cases in marketing

This AI algorithm can be used for customer segmentation, going through raw customer data, and understanding each group and their behavior.

You can also use unsupervised learning AI algorithms for personalization. It can categorize your content to show it to the segments who may find it useful and relevant.

3. Reinforcement learning algorithm

Reinforcement learning AI algorithm learns from the environment it interacts with. It receives feedback in the form of either a reward or a penalty. It adjusts its actions to accumulate rewards.

Reinforcement learning’s use case in marketing

Reinforcement learning has use cases in various industries. In marketing, a simple use of this type of algorithm is A/B testing.

A/B testing is a method that compares two versions of content or web pages among two sets of audiences to identify which one performs better. The better-performing content is then more distributed widely to your audience.

Uses of AI algorithms in marketing

AI algorithms have numerous uses in different industries. In marketing, businesses can use AI algorithms for:

Which AI algorithm should I use?

When choosing the right AI algorithms, it’s important to identify the data you have and will gather. Are they labeled or unlabeled?

In addition, you also have to consider your business need for the AI algorithm. Will you use it for analytics or for segmenting your customers?

Here are other factors to consider:

  • Size and structure of your data
  • Data’s complexity
  • Desired output

Meet WebFX:

Your world-class, tech-enabled marketing agency with over 1.6 million hours of combined expertise.

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Leverage AI algorithms to grow your revenue with WebFX

AI algorithms are crucial elements of your AI system. These algorithms are at the heart of your AI systems. Without them, your AI systems can’t perform the tasks they’re intended to do.

To leverage AI algorithms to stay competitive and grow your revenue, team up with a digital marketing agency with AI expertise, like WebFX. Our IBM Watson AI-based growth platform, MarketingCloudFX, has helped our clients improve their return on investment by 20%!

You can also expect excellent customer service from our team of experts whose mission is to understand your business and needs, and grow your bottom line.

To get started, contact us online or call us at 888-601-5359 to speak with a strategist about our AI services!

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