Generative AI as a Disruptive Innovation: Implications for Marketing Strategic Transformations

Abstract

This study explores the potential for small marketing firms to disrupt the market by leveraging generative AI technology within the framework of disruptive innovation theory. A qualitative approach was employed, combining a comprehensive literature review with in-depth interviews with leaders from small marketing firms. The data was analyzed using the Natural Language Processing (NLP) and thematic analysis techniques. This study is the first to apply the theory of disruptive innovation to the use of generative AI at small marketing firms. It contributes to the emerging body of knowledge on AI in marketing and offers practical guidance for scholars and practitioners to advance this field. The findings suggest that small firms can gain a competitive edge by adopting AI early, utilizing it to target underserved markets, and developing innovative, cost-effective services. The study positions generative AI as a significant technological evolution, with the potential to revolutionize the marketing industry. It identifies generative AI as a tool for enhancing efficiency, content development, customer service, and research. Small marketing firms are found to be in various stages of AI adoption, with many viewing it as a complement to human creativity. This study highlights the need for new skills, such as AI literacy and strategic thinking, while also emphasizing the continued importance of human oversight.