Why Explainable AI is the Future of Effective Marketing

Why Explainable AI is the Future of Effective Marketing for Small Businesses

XAI, or Explainable Artificial Intelligence, is a group of AI where the models are understandable and transparent for consumers. Some AI can act a lot like a black box, but XAI allows you to look into its inner workings and see the why behind the decisions it makes. This is great for businesses who may worry about what AI is actually doing with their data, not to mention it gives their customers peace of mind. In this blog, we will look at why XAI is so important moving forward and the many ways it is or will be implemented. 

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Understanding Explainable AI (XAI)

XAI is a type of artificial intelligence meant to be understood by you and me, not just the developers of the AI. XAI software can give clear explanations for its decision-making process, which really helps businesses understand why it’s making certain marketing choices. Understanding is incredibly important, as marketers might ultimately disagree with the choice once they see the why behind it. 

The Importance of Transparency in AI

If you want to build trust with your customers and stakeholders, you need transparency in most of your processes. Putting your content or marketing efforts behind a mystery wall is a surefire way to make everyone involved nervous. 

Customers want to know how their data is used, too–data you might be collecting from chatbots, automatic opt-ins, or even ads. Not only is this mandatory in some parts of the world, but it’s just good business practice. Businesses can really take advantage of XAI to explain AI marketing strategies they might be using, remain clear to those invested and ensure they stay ethical and honest. 

Concrete Examples of XAI in Action

Now you know what XAI actually is, here are some concrete examples of how it is used for businesses online every day:

  • Explaining Marketing Performance: Marketers will run A/B tests, XAI can explain why a certain option may have worked better for your audience. This can give invaluable insight that you can use elsewhere in your marketing/visibility efforts. 
  • Website personalization: Some AI will show specific copy to certain visitors, like different product recommendations. XAI can tell you why it chose to show a certain product to someone. 
  • Content optimization: AI can look at how people are engaging with your content online, XAI can tell you why certain pieces of content work better than others. This way, you can tailor your strategy going forward. 

XAI Software Libraries Popular Right Now

Some tools to look out for in this area are listed below:


Tool What it Does Description Pros Cons
SHAP (SHapley Additive exPlanations) Explains feature impact on predictions Analyzes how a model uses data to make decisions Model-agnostic, easy to understand, works with various models Can be computationally expensive for complex models
LIME (Local Interpretable Model-Agnostic Explanations) Explains individual predictions Creates simpler models to understand how a complex model arrives at a specific prediction Model-agnostic, good for complex models Less efficient for global explanations
DARPA CARES (Capturing Anthropomorphic Reasoning in Explainable Systems) Generates explanations for model predictions Designed for rule-based models, focuses on mimicking human reasoning for explanations Offers human-readable explanations, valuable for specific use cases May not be suitable for all types of machine learning models
DARPA XAI-Reasoner (Explainable AI Reasoning) Provides reasoning paths for model decisions Explains the chain of logic a model follows to reach a prediction Offers in-depth explanations, useful for complex models Can be computationally expensive, might require expertise for advanced use


How XAI Empowers Small Businesses in Marketing

If you want to be one step ahead of your competitors then AI in your marketing is where it’s at, but adding an extra layer of transparency to that is where you can really stand out. For example, if you’re a small online clothing boutique implementing an XAI-powered recommendation engine, you may note that the XAI system revealed that purchase decisions were heavily influenced by fabric type, color, and style.  The AI therefore recommends a certain fabric to highlight, but you know that fabric is about to be less desirable as the weather changes, so you pick its second recommendation. 

Overcoming Challenges with Explainable AI

While XAI offers some benefits, there are challenges to consider:

  • Complexity: using XAI can be more complex than traditional AI. However, the long-term benefits outweigh the initial investment.
  • Cost: XAI is newer and so there are less options and it can be more complicated plus need a higher initial investment.

Small businesses can overcome these complexities by starting small and only focussing AI on areas where time needs to be saved and by doing so more money could be saved. 

Implementing XAI in Your Marketing Strategy 

Here are some steps you can take to work with professionals today:

  1. Research XAI Tools: look into the latest software and find a good professional like a data analyst. 
  2. Start Small: pick one part of your marketing efforts to overhaul first. Perhaps this is a specific kind of ad or content creation. 
  3. Seek Expert Guidance: always consult first with experts who know what will actually work for you. They’ll be able to point you in the right direction and teach you how to streamline your marketing efforts without causing issues. 

Explainable AI Will Be Implented Everywhere Soon

As we move further into the future, AI will become more and more relevant. Businesses that refuse to catch up and use it in their marketing efforts will find themselves increasingly behind their competitors. By understanding things like XAI you position yourself to be ahead of the curve and ensure you’ll have the best chance of finding your dream clients/customers. 

If you need assistance with custom content that ranks and gets clicks, improves your brand’s exposure online, increases quality traffic to your site, and converts visitors into customers, contact ClickGiant today. We are a leading digital marketing agency serving clients nationwide. 

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