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Market wrap: Inflation surprises, geopolitical shifts, and crypto’s resilience amid uncertainty

The global financial markets have been a whirlwind of volatility this week, driven by a hotter-than-expected US inflation report for January, shifting expectations for Federal Reserve policy, and unexpected geopolitical developments. As a journalist with a front-row seat to these unfolding events, I find myself reflecting on the broader implications for investors, policymakers, and the global economy.

The US core Consumer Price Index (CPI) for January came in at 3.3 per cent year-over-year, surpassing forecasts of 3.1 per cent and inching up from the prior reading of 3.2 per cent. This stubborn inflationary pressure has sent ripples through bond markets, equities, and even the nascent crypto space, while President Donald Trump’s surprising move to negotiate an end to the Russia-Ukraine war adds another layer of complexity.

In this article, I’ll unpack these developments, explore their interconnected impacts, and offer my perspective on where we might be headed next.

Let’s start with the inflation data, which has dominated headlines and reshaped market sentiment. The January core CPI print of 3.3 per cent was a stark reminder that inflation, despite the Federal Reserve’s aggressive efforts, remains a persistent challenge. Economists and markets had anticipated a slight cooling to 3.1 per cent, but the unexpected uptick—driven in part by soaring egg prices (up 15.2 per cent in a month), rising rents, and higher gas and food costs—has forced a recalibration.

Posts on X captured the immediate reaction, with many users noting the surprise and speculating on the Federal Reserve’s next moves. One post highlighted that core CPI, excluding volatile food and energy prices, has now remained above 3 per cent for 45 consecutive months, underscoring the stickiness of underlying inflation. This data, confirmed by reports from Reuters and other outlets, has significant implications for monetary policy.

Federal Reserve Chair Jerome Powell, in his second Congressional testimony this week, reiterated the Fed’s commitment to taming inflation but acknowledged that “more work” is needed. His words, while measured, did little to soothe markets, as traders pushed back expectations for the next rate cut from September to December. This shift, reflected in futures markets, signals a growing consensus that the Fed will maintain higher interest rates for longer, a scenario that could weigh on economic growth and risk assets.

The bond market’s reaction was swift and decisive. US Treasuries tumbled across the curve, with the 10-year yield rising 8.6 basis points to 4.621 per cent and the 2-year yield climbing 7.2 basis points to 4.355 per cent. The widening of the 2-year and 10-year yield spread by 2.2 basis points to 27.4 basis points suggests that investors are pricing in a more hawkish Fed stance in the near term, with longer-term yields reflecting concerns about sustained inflation. For bond investors, this is a challenging environment. Higher yields, while attractive for new buyers, mean mark-to-market losses for those holding existing Treasuries.

Also Read: The future of semiconductor manufacturing is regional: Global TechSolutions CEO

From my perspective, this dynamic underscores the delicate balancing act the Fed faces: tightening too aggressively risks tipping the economy into recession, but easing prematurely could allow inflation to spiral further. Powell’s testimony, while reaffirming the Fed’s resolve, left open questions about the pace and magnitude of future rate hikes, leaving markets in a state of heightened uncertainty.

Equities, predictably, felt the heat. US stocks initially fell sharply after the inflation data, with the MSCI US index ending the day down 0.3 per cent. The energy sector was the biggest underperformer, dropping 2.8 per cent, likely due to a combination of profit-taking and concerns about demand in a higher-rate environment.

However, tech buyers stepped in later in the session, helping to pare losses. This resilience in tech, despite rising yields, is noteworthy. It suggests that investors still see value in growth stocks, particularly in sectors like technology, which have been buoyed by strong earnings and innovation.

Yet, the broader market remains vulnerable. The S&P 500’s correlation with other risk assets, including cryptocurrencies, highlights the interconnectedness of today’s markets. Posts on X noted this linkage, with users pointing out that altcoins like Ethereum, XRP, and DOGE saw slight gains alongside the S&P 500, underscoring crypto’s sensitivity to equity market movements. For investors, this correlation is a double-edged sword: it amplifies gains during bullish periods but exacerbates losses when sentiment turns sour.

Speaking of cryptocurrencies, the crypto market has shown surprising resilience amid this week’s turbulence. Bitcoin and other major altcoins posted modest gains on Wednesday, a recovery that coincided with President Trump’s unexpected announcement of phone calls with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy to negotiate an end to the Russia-Ukraine war.

This development, reported by Bloomberg, marks a shift from previous US policy and has eased concerns about disruptions to Russian crude supplies. Brent crude, which fell 2.3 per cent to US$75.18 per barrel after US crude inventories rose, reflects this easing of geopolitical risk. For the crypto market, Trump’s move is a potential tailwind. Bitcoin, often seen as a hedge against geopolitical uncertainty, benefited from the news, with prices ticking higher. Ethereum, XRP, and DOGE followed suit, though gains were modest.

From my perspective, this recovery is encouraging, but it’s tempered by the broader macro environment. The stronger-than-expected US inflation data earlier in the week had initially pressured crypto prices, as higher rates typically weigh on speculative assets. Yet, the crypto market’s ability to rebound suggests that investor appetite for digital assets remains strong, particularly in light of institutional adoption.

On that note, Goldman Sachs’ latest filing with the Securities and Exchange Commission, published on February 12, 2025, caught my attention. The investment bank reported holding US$2.05 billion in Bitcoin and Ethereum ETFs as of the end of 2024, a significant increase from earlier quarters.

This move, detailed in reports from Cointelegraph and Decrypt, reflects a broader trend of institutional interest in cryptocurrencies. Goldman Sachs’ investments, split between BlackRock’s iShares Bitcoin Trust, Fidelity’s Wise Origin Bitcoin Fund, and Ethereum-focused ETFs, signal a growing acceptance of digital assets on Wall Street.

However, it’s worth noting that Goldman Sachs has historically been critical of cryptocurrencies, with executives like Sharmin Mossavar-Rahmani comparing the recent crypto enthusiasm to the tulip mania of the 1600s. This dichotomy—between the bank’s public skepticism and its substantial investments—raises questions. Is Goldman Sachs hedging its bets, or is it simply responding to client demand?

From my perspective, this tension highlights the evolving nature of the crypto market. Institutional adoption, fueled by a more favorable regulatory environment under the Trump administration, is driving growth, but skepticism persists. For retail investors, Goldman Sachs’ involvement is a double-edged sword: it validates the asset class but also introduces new risks, as institutional flows can amplify volatility.

Also Read: The Trump effect: Steel tariffs, Bitcoin surge, and the future of crypto in Japan and beyond

Shifting focus to Asia, the latest economic data from India adds another layer of complexity to the global picture. Softer-than-expected industrial output and inflation figures have raised concerns that India, one of the world’s fastest-growing major economies, may be entering a softer growth patch.

Asian equity indices were mixed in early trading, reflecting uncertainty about the region’s trajectory. For investors, this is a reminder that global markets are interconnected, and weakness in one region can spill over into others.

From my perspective, India’s challenges underscore the uneven nature of the global recovery. While the US grapples with inflation, emerging markets like India face growth headwinds, creating a divergent policy landscape. For central banks, this divergence complicates coordination efforts, as rate hikes in the US could exacerbate capital outflows from emerging markets.

Looking ahead, the interplay between inflation, monetary policy, geopolitics, and risk assets will continue to shape markets. The US inflation data has dashed hopes for rate cuts in 2025, with traders now pricing in a more hawkish Fed stance. President Trump’s move to negotiate an end to the Russia-Ukraine war is a potential de-escalation, but its impact on energy markets and global risk sentiment remains uncertain. The crypto market, buoyed by institutional adoption and geopolitical developments, is showing resilience, but it’s not immune to macro pressures.

For investors, navigating this landscape requires a careful balance of caution and opportunism. From my perspective, the key takeaway is that uncertainty is the new normal. Inflation, while stubborn, is not insurmountable, but it will require sustained policy efforts. Geopolitical risks, while easing in some areas, remain a wildcard.

And cryptocurrencies, while volatile, are increasingly part of the mainstream financial system. As we move forward, staying informed, critically examining narratives, and remaining adaptable will be essential. The markets, as always, will test our resolve, but they also offer opportunities for those willing to navigate the complexity.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join us on InstagramFacebookX, and LinkedIn to stay connected.

Image courtesy of the author.

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HD lands US$7.8M to grow HDmall, expand AI chatbot, enter Vietnam

HD, the Bangkok-headquartered company behind HDmall, a healthcare and surgery marketplace in Thailand and Indonesia, has secured US$7.8 million in equity funding.

The funding round included participation from US-based Merck Sharp & Dohme (MSD), SBI Ven Capital, M Venture Partners, FEBE Ventures, and Partech Partners.

Also Read: These former aCommerce execs are building an ‘Amazon’ for healthcare in Southeast Asia

This marks the first investment by MSD IDEA Studio Asia Pacific, an initiative by the MSD Global Health Innovation Fund (MGHIF) and MSD Asia Pacific regional team, invest in a Southeast Asian healthtech firm.

HD will use the money to develop HDmall further and invest in its artificial intelligence (AI) technology.

Since its inception, HD has secured US$18 million in total funding.

HD was co-founded in 2019 by Sheji Ho, Aditya Jamaludin, Raya Chantaramungkorn (all former top executives at Thailand’s leading e-commerce enabler aCommerce), and Frankie Shum (formerly with Ardent Capital). HD connects patients to hospitals, clinics, operating rooms and surgeons while offering healthcare financing solutions to increase access to affordable care and surgeries.

HDcare works with healthcare providers – many already on the HDmall platform – to increase the utilisation of hospitals’ and clinics’ operating room capacities.

HDmall lists over 30,000 stock-keeping units (SKUs) from over 2,500 healthcare providers and several pharmaceutical partners. It has 400,000 paying customers across Thailand and Indonesia and has an annual gross transaction volume of US$100 million.

The healthtech firm targets 5,000 healthcare providers and 600,000 patients by 2025.

Also Read: ‘Airbnb for surgeries’ HDmall gets FEBE Ventures backing to deepen market presence in SEA

The firm has developed an AI chatbot, Jib AI, which uses large language models and has been trained on anonymised healthcare data, transaction data and chat commerce data. Jib AI manages approximately 60 per cent of customer interactions and provides 24/7 responses. The company plans to expand Jib AI’s capabilities to include order and refund processing, assisted checkouts, scheduling, electronic health record checks and medical information retrieval. It will also implement virtual care with expert physicians. Jib AI also helps healthcare professionals handle initial patient triaging and care navigation.

The startup plans to expand into Vietnam and potentially Myanmar, citing the similarity of their healthcare systems. The company sees a market opportunity because of the high percentage of out-of-pocket payments in the region and the increased self-empowerment of users who are searching for health information online.

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SeaX Ventures: Deep tech investment contains high risks, but partnership is key to success

Dr. Kid Parchariyanon, Founder, SeaX Ventures

SeaX Ventures, a Thailand-based venture fund with US$100 million in assets, is making strides in fostering collaboration between deep tech startups and larger corporations or government bodies.

Founded by Dr. Kid Parchariyanon, the firm focuses on investing in early-stage companies with transformative technologies, with a dual mission: bringing Southeast Asian (SEA) investment and customers to US entrepreneurs while introducing Silicon Valley’s innovations to the SEA market.

One of SeaX Ventures’s latest investments is RyboDyn, a US-based biotech startup developing immunotherapies targeting the dark genome. The firm co-led a US$4 million pre-seed funding round for RyboDyn and is actively facilitating connections that can accelerate its growth in the region.

Dr. Parchariyanon highlights the importance of partnerships in scaling deep tech solutions effectively. “Partnerships are at the heart of what we do. With our network of over 500 corporations in SEA, we facilitate connections that go beyond introductions. These are hands-on partnerships designed to help startups scale while solving real business challenges.”

This collaborative approach extends across multiple sectors. For instance, SeaX Ventures works with climate tech startups to link them with corporations that can deploy their innovations at scale. Additionally, the firm helps startups navigate regulatory landscapes by working closely with government agencies to create supportive environments for emerging technologies.

Also Read: Market wrap: Inflation surprises, geopolitical shifts, and crypto’s resilience amid uncertainty

By leveraging its extensive network and industry expertise, SeaX Ventures continues to act as a conduit between deep tech startups and established players, facilitating growth and innovation across borders. As the demand for cutting-edge solutions in fields like biotech and climate tech increases, the firm remains committed to fostering high-impact partnerships that drive meaningful progress.

In this interview with e27, Dr Parchariyanon discusses significant trends in SEA’s deep tech sector and what the firm aims to do about them.

This is an edited excerpt of the conversation.

What are the most significant trends in deep tech that you believe will shape SEA’s future in the next five to 10 years?

SEA is at a unique crossroads where rapid economic growth meets an increasing need for transformative solutions. Over the next decade, we will see deep tech advancements in climate tech, biotech, AI, and blockchain having the most profound impact.

Climate tech, in particular, is becoming increasingly urgent. As the region faces challenges like rising sea levels and extreme weather, solutions that address energy efficiency, sustainable agriculture, and decarbonisation will play a critical role.

At the same time, advancements in AI and blockchain will reshape sectors like fintech and supply chains, while biotech has the potential to revolutionise healthcare access and outcomes.

Also Read: ‘The future of semiconductor manufacturing is regional’: Global TechSolutions CEO

Are there specific industries or verticals within deep tech that you see gaining more traction in the region? Why?

Climate tech is at the forefront of deep tech innovation in SEA. The region is responsible for around seven per cent of global carbon emissions and many countries have pledged to be net-zero by 2065, which is far too late.

There is an urgent need to find solutions that address energy security and sustainability, and areas like renewable energy, carbon capture, and waste management are already gaining momentum. At SeaX Ventures, we believe strongly about this, which is why we have invested in companies like Type One Energy and Hoxton Farms that are prioritising the planet’s future.

Governments and corporations are starting to prioritise green initiatives, but we need to act faster to mitigate the environmental impact and shape a sustainable future for the region. Addressing climate risks while also creating scalable solutions for long-term economic and environmental resilience is important.

What are some of the primary challenges deep tech startups face when scaling in SEA, and how can investors or ecosystem players address these issues?

A common challenge for early-stage deep tech companies is finding specialised talent and resources to scale since niche expertise and infrastructure are often required. Investors and other players can try to address this by fostering cross-border partnerships, providing startups with the mentorship they need, and helping them tap into global networks for talent and technology.

Beyond sourcing specialised talent and resources, gaining access to customers—especially larger corporates—is also a significant challenge. It takes time to find the right decision-makers within these organisations and build the trust needed to establish lasting relationships.

That is why what we do at SeaX Ventures makes a real difference. Through our exclusive partnership with RISE, an innovation consulting firm that serves over 500 organisations, including private, public, and state-owned enterprises, we are able to bridge critical gaps. By leveraging our strong regional connections, we help startups access the right support and networks they need to thrive.

Also Read: From 8x growth to Agentic AI: Omnichat’s APAC expansion and $10M Series A+ fundraising plans

For example, we invested in Band Protocol, and through our network, we helped them connect with key technology partners and industry stakeholders that helped accelerate their integration into broader markets. By facilitating these connections, we ensure startups gain the support they need to scale effectively.

What unique strengths or opportunities does SEA offer for deep tech innovation compared to other regions?

SEA has a massive, fast-growing market of over 680 million people who are eager to adopt new solutions, which creates great opportunities for startups to test and scale their innovations. Additionally, the region’s challenges, whether it is climate change, urbanisation, or healthcare access, are driving demand for transformative technologies.

Another strength is the entrepreneurial spirit here. SEA is full of ambitious founders who are passionate about solving problems and making a difference. Pair that with increasing government support for innovation and a growing pool of private capital, and you have a recipe for impactful deep tech breakthroughs.

How does SeaX Ventures evaluate the potential of early-stage deep tech startups, especially considering the higher risks and longer timelines often associated with these technologies?

We take a very intentional approach when evaluating which early-stage companies we will invest in. For us, it is about more than just the technology – we focus on the core problem the startup is solving and the team behind it. At SeaX Ventures, we look for world-class founders who are not only technically brilliant but also driven by a mission to disrupt entire industries and solve important problems.

Given the higher risks and longer timelines, we also focus on creating strong partnerships to support these startups.

Through our network of SEA corporations, we help these early-stage companies secure early market traction and have access to the resources they need to scale faster. For example, we invested in Qvin and helped them partner with BDMS group, one of the largest healthcare networks in Asia. This bridge-building approach helps mitigate some of the risks while creating long-term value.

How do you see venture capital’s role in driving the adoption and development of deep tech solutions, particularly in addressing critical regional challenges such as climate change, healthcare, and urbanisation?

Venture capital plays a crucial role in bridging the gap between innovation and impact. Deep tech solutions often require significant upfront investment, and venture capital firms provide the capital and strategic support to help founders navigate this journey.

Also Read: APAC’s surge in green tech is driving a global movement

At SeaX Ventures, we are especially focused on addressing challenges like climate change and much-needed healthcare breakthroughs. For example, we invest in deep tech climate startups that can help reduce carbon emissions – one of SeaX’s main goals is to reduce global carbon emissions by one per cent – or improve energy efficiency.

We then connect our portfolio companies with corporations that can adopt and scale their solutions. By fostering collaboration between startups, corporations, and even governments, we aim to drive meaningful change in the region and beyond.

What is your major plan for 2025?

In 2025, we are focused on doubling down on climate tech and other transformative areas like quantum, material science and AI. As we move through the year, we will focus heavily on investing in companies striving for carbon neutrality while also working toward our ambitious goals of reducing global carbon emissions by one per cent and driving one per cent of GDP growth for SEA through innovation.

We have already started the year off strong with our recent investment in the US-based biotech company RyboDyn, which I mentioned earlier. We are proud to back them as they expand their reach globally. With our connections in the pharmaceutical and healthcare industries, especially in SEA, we look forward to helping them explore new opportunities and make a real difference in healthcare worldwide.

We are always looking to expand our network of corporate partners and deepen our support for startups in our portfolio. At SeaX, our goal is simple: We bring SEA investment and customers to world-class entrepreneurs and, in return, bring breakthrough technologies to SEA to help facilitate growth in the region.

Image Credit: SeaX Ventures

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Unlocking growth: The importance of inbound marketing for SaaS businesses

Marketing is one of the biggest challenges that SaaS companies face. Whether you have an established SaaS business or a SaaS startup, you’d agree that SaaS marketing is an altogether different game.

SaaS businesses have a single software that they sell to their entire target market. Product limitation creates a lot of marketing-related challenges that businesses in other sectors (like retail) don’t face.

You have to maintain a high retention rate due to the subscription-based pricing model. This means you have to offer free trials to potential customers to encourage conversions. Marketing free software is easy, but converting free users to paid customers is an even bigger challenge. Limitations like these make SaaS marketing different and difficult.

Inbound marketing reduces these challenges significantly and helps you reach and connect with your ideal customers at the right time on the right channel.

Here’s a list of the major reasons why inbound marketing acts as oxygen for your SaaS company:

It’s sustainable

Inbound marketing is sustainable as it relies on content creation and publication. The content you publish on your blog (or other channels) continues to drive targeted traffic through search engines for years to come.

The life of a piece of content is potentially unlimited.

What this means is that inbound marketing doesn’t require regular investment that you do with outbound marketing.

The content you publish on your SaaS blog today will rank and drive traffic for years with minimal maintenance cost. You need to refresh and update content, maybe once a year, which doesn’t cost a lot.

Scalability is another added benefit. You need to increase publishing frequency for scaling making inbound marketing an ideal long-term marketing strategy.

It’s cost-effective

Inbound marketing is quite inexpensive in terms of customer acquisition cost (CAC) which plays a major role in SaaS growth.

Research shows that it costs US$14 less than traditional marketing to acquire a new customer through inbound marketing and it helps SaaS businesses save as much as 62 per cent in marketing when they use inbound (vs outbound) marketing.

Inbound marketing saves the cost in multiple ways:

  • It doesn’t require excessive use of landing pages (which are essential for online ads). It requires publishing informative content that ranks in search engines and drives organic traffic to blog posts without any use of landing pages.
  • The maintenance cost of content marketing is quite low compared to the maintenance cost of PPC ads. When you publish evergreen content on your blog, it doesn’t need regular updates which save
  • Content production can be managed easily in-house. This makes it quite cheap. For instance, you can ask sales, finance, customer support, and other teams to contribute one article per month for the company blog. This is something you can’t do with outbound marketing.

High customer lifetime value

SaaS businesses have to maintain a low CAC to improve customer lifetime value (CLV) which determines the profitability. A high CLV means you make more money per paid customer than the money spent on acquiring a customer.

You must have a higher CLV than CAC to maintain a positive and profitable SaaS business model. This is where inbound marketing plays a major role as it lets you acquire customers organically with minimal investment:

business model balance

It costs a lot to acquire a new customer through outbound marketing. Think of a search ad campaign on Google Ads to acquire leads for your SaaS business. The problem with outbound marketing is that it stops generating traffic and conversions as soon as you pause your campaign.

Also Read: 3 stages of marketing for your startup that can drive effective results

That’s not the case with inbound marketing.

Let’s say you spend $1,000 to publish a high quality article on your SaaS blog. It will stay there for years and will generate leads for your business without any recurring cost. This significantly lowers CAC over a period of time (not necessarily in the short run) and leads to a high CLV.

Build relationships

Building and nurturing relationships is the backbone of inbound marketing.

Your ideal customers find you through content. This improves brand awareness and brand recall. When your ideal customers find your SaaS brand for multiple search queries (and if they like your content), they will continue to engage with your blog.

If you are actively generating leads via your blog (which you should), you can nurture leads and convert them into customers.

The idea is to convert organic visitors into leads and then engage with them via email marketing and move them down the funnel where they finally become your customers.

Better conversion rate

Inbound marketing is a non-intrusive form of marketing. Your audience visits your blog and engages with the content when they want to. This is a reason inbound marketing has a better conversion rate than outbound marketing.

When you run a social ad on Meta, your ad appears to be intrusive. People who scroll their news feeds aren’t in a buying mode. However, someone who has entered a search query in Google is looking to solve a problem – and might be in a buying mode (in-market).

Also Read: How marketing will be enhanced through generative AI

The probability of converting an organic visitor into a customer is much higher than converting a paid visitor. Statistics show that inbound marketing increases conversion rate, on average, from six per cent to 12 per cent and it’s 10x more effective for lead conversion than outbound marketing channels.

This is true for the entire funnel – not just the top of the funnel.

While outbound marketing is more effective for the bottom of the funnel as it takes a significant number of interactions for a potential customer to convert, inbound marketing works across the funnel with equal efficacy.

Inbound marketing should work with other marketing channels

The best SaaS companies distribute their marketing budget between inbound and outbound marketing – and this is what you should do. Inbound marketing sets the stage for long-term sustainable and scalable growth while outbound marketing provides your SaaS business with instant, targeted traffic and leads.

Don’t let PPC consume your entire marketing budget as you will rely on it forever without any presence of owned media across different channels. Inbound marketing should be a part of your SaaS marketing strategy from day one.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join us on InstagramFacebookX, and LinkedIn to stay connected.

Image credit: Canva Pro

This article was first published on October 29, 2024

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Generative AI and inclusive branding: Are we there yet?

It took two and a half years for Airbnb, ten months for Facebook, and 2.5 months, for Instagram to sweep a million users.

Then there was ChatGPT.

This chart shows the time it took for selected online services to reach one million users. Source: Statista

Launched in November 2022, this technology took just five days, propelling generative AI and AI in general to the forefront.

And then the recurring question of how AI will take away all our jobs reared its head, as is the case with almost all intriguing tech innovations that changes the game.

The no-brainer short answer to the above question is: No, Nope, Nein, Nyet.

AI (and for the context of this article, ChatGPT and other generative AIs) can augment human credentials by automating specific tasks and freeing up time for more complex and creative work.

AI and marketing

The language model offers powerful capabilities for generating human-like text. 

This is a piece of old news. 

Marketers and the technology teams supporting marketing have used AI for years. It is no secret that machine-learning algorithms govern Meta and Google advertising. 

Also Read: The rise of Social+ 2.0: How in-app communities and AI are reshaping the consumer tech landscape

Even Amazon has used artificial intelligence to design personalised experiences for some time now. 

In general, however, personalisation will continue to be an area where AI can provide actual value. E.g., it can assist significantly in deciding the type of messaging and content to put in front of users. 

However, for several reasons, marketers should think twice before using it to develop strategies for embracing diversity and representation in branding.

The risk of perpetuating biases and stereotypes

Although, OpenAI, the company behind the first GPT and its subsequent versions (we are on GPT-4, in case you have missed the memo), added guardrails to help ChatGPT evade challenging answers from users asking the chatbot to, for example, take a dig or say a slur or commit crimes.

One primary concern with using generative AI models such as ChatGPT for developing inclusive branding is that the language model is trained on large datasets of human language; it can reproduce patterns of discrimination and prejudice in our society.

Woke-washing and lack of authenticity

Practices (or collaterals, campaigns, content insinuating ) in business that provide the appearance of social consciousness without any substance are labelled as woke-washing. 

Such content fails to engage authentically with issues of diversity and representation. 

Because the language model generates texts based on statistical patterns in an existing language, it may not capture the nuances and subtleties of diverse perspectives and experiences.

This results in the risk of creating content that lacks genuineness and fails to resonate with diverse audiences. 

Complex and multifaceted ethical considerations

Different generative AI types exist, such as text-to-text or text-to-essay, text-to-art or text-to-image, text-to-audio, text-to-video, etc.

ChatGPT and it’s most recent version, GPT-4, is an extensive computational pattern-matching software and data modelling apparatus, which raises critical ethical considerations when used to develop inclusive branding. 

Also Read: ChatGPT becomes the helper or killer to all occupations in Vietnam

Such tools can generate large volumes of content quickly and cheaply to the extent that the algorithm may inadvertently disclose someone’s personal information.

There is a risk that marketers may prioritise efficiency over ethical considerations, such as the need to obtain consent from diverse communities and ensure that their perspectives are accurately represented. 

The caveat

AI is powerful. It will continue revolutionising the enterprise landscape, impacting all streams, from marketing to human resources. 

However, its effectiveness relies on human intelligence. 

As a marketer, the insights provided by AI are valuable if they are fuelled by data and understanding and used to evolve marketing plans, improve communications, and drive positive change for both customers and the business. 

And, although ChatGPT and its ilk (Smartwriter.ai, Phrasee, Jasper.ai) may be entering into an eternal category of functionality, getting leveraged for varied use cases, the OpenAI admits that ChatGPT-4 still struggles with bias; it could even deliver hate speech. 

Of course, the tech still gets things wrong, as people will always cheerfully point out. It is far from perfect and most likely be a perpetual work in progress. 

But then again, so are humans. 

This article was first published on March 27, 2023

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