Artificial intelligence could make brands obsolete

Brands are dead, or they might be in the future.

According to Aaron Shapiro, the CEO of the marketing firm Huge, brands will take a backseat as technology like artificial intelligence and machine learning become more prevalent.

"As machines start to take more decisions for people, it makes it harder for marketers to figure out how to enter into that equation, and how to influence consumer behavior," Shapiro told Markets Insider. "It's very disruptive for many companies."

Artificial intelligence powers technology like Apple's new face recognition unlock tool and Google's smart assistant. AI is in its infancy, but it already is showing up in users lives in a big way, which could be a big problem for marketing firms like his.

Shapiro says to understand AI's impact on brands, picture a futuristic smart fridge. The fridge has cameras to track the food inside, and it sees that your milk is running low. Because it's connected to your credit card and your preferred online grocery store, it automatically orders new milk based on data it's gathered about your previous shopping habits. The fridge already knows what kind of milk you prefer based on what it's already seen you buy, so you don't have to pick the brand or even type of milk to reorder.

"You're already locked into your preferences and you're done," Shapiro said. "You're not even deciding what food you want to buy anymore."

That exact fridge may not exist yet, but it could soon. A Samsung smart fridge already can already track your food and offer recipes based on what's in your fridge. Visa has said that it expects all fridges in the future to be connected to your credit card and have built-in food delivery capabilities built in. 

But AI won't just affect your snacking habits. Shapiro said that Amazon's Alexa assistant already lets you order products without being too specific.

When asking for more soap, for example, Amazon will pick a soap it thinks you will like based on its algorithm, and while it has you confirm that choice, Amazon already is able to sort through the hundreds of brands and pick a soap for you.

"Most of the internet up until today has been about more options," Shapiro said. "Now with machine learning, it's not about everything, it's about the perfect product just for me."

Shapiro says this means the companies that own the most successful versions of these artificial intelligences will wield immense power in the future.

That's probably why Google is working so vehemently on its smart assistantShapiro said that Google's business is ad-supported right now; it sells brands spots at the top of search results for the items being branded. If users stop searching for the best types of soap and instead rely on algorithms to pick out soap for them, soap brands will stop buying those ads and Google would lose its biggest source of revenue, according to Shapiro.

When asked what the future of advertising looks like in a world dominated by smart fridges and voice assistants, Shapiro says he doesn't know but is really excited to find out.

"I love technology that makes things simple and more powerful for people," Shapiro said, alluding to AI. AI is "both very exciting and really scary if you're trying to market."

RELATED: The most stressful US tech companies

11 PHOTOS
The most stressful US tech companies
See Gallery
The most stressful US tech companies

No. 10: SAP

% High Job Stress: 65%

Mid-Career Median Salary: $143,000 

Photo credit: Reuters 

No. 9: Intel

% High Job Stress: 65%

Mid-Career Median Salary: $126,000 

Photo credit: Reuters 

No. 8: GoDaddy

% High Job Stress: 67%

Mid-Career Median Salary: $99,000 

Photo credit: Getty

No. 7: Fujitsu

% High Job Stress: 68%

Mid Career Median Salary: $108,000 

Photo credit: Getty

No. 6: Uber

% High Job Stress: 70%

Mid Career Median Salary: $149,000 

Photo credit: Reuters 

No. 5: Tesla Motors

% High Job Stress: 71%

Mid Career Median Salary: $110,000 

Photo credit: Reuters 

No. 4: Samsung

% High Job Stress: 74%

Mid Career Median Salary: $135,000

Photo credit: Reuters 

No. 3: InsideSales

% High Job Stress: 75%

Mid Career Median Salary: $107,000

Photo credit: PayScale

No. 2: Airbnb

% High Job Stress: 75%

Mid Career Median Salary: $123,000 

Photo credit: Getty

No. 1: SpaceX

% High Job Stress: 86%

Mid Career Median Salary: $80,800 

Photo credit: Reuters

HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

NOW WATCH: Traders are gearing up for Trump's tax cut plan

See Also:

SEE ALSO: Artificial intelligence is going to change every aspect of your life — here's how to invest in it

Read Full Story

Markets

NASDAQ 6,856.29 65.58 0.97%
S&P 500 2,598.29 16.15 0.63%
DJIA 23,599.02 168.69 0.72%
NIKKEI 225 22,416.48 154.72 0.69%
HANG SENG 29,818.07 557.76 1.91%
DAX 13,176.16 117.50 0.90%
USD (per EUR) 1.17 0.00 0.05%
USD (per CHF) 0.99 0.00 -0.14%
JPY (per USD) 112.42 -0.12 -0.11%
GBP (per USD) 1.32 0.00 -0.07%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.