Are CMOs Mistaking Automation for DT?

Misinterpretation of digital transformation is not just misleading but could also cost firms real chances for innovation and long-term growth

- Gaurav Laghate

The rapid rise of artificial intelligence (AI)-driven marketing tools has created a dangerous illusion in the industry—many brands believe that automating processes is the same as transforming their business. But while automation enhances efficiency, true digital transformation (DT) is about rethinking the business model itself. The widespread misinterpretation of DT is not just misleading but could also cost companies real opportunities for innovation and long-term growth.

The confusion arises from the term 'digital' in DT. Many CMOs (chief marketing officers) assume that implementing AI-powered chatbots, personalized email campaigns and automated customer interactions equates to a full-fledged transformation. But as Mehul Gupta, co-founder & chief executive officer (CEO) of SoCheers, aptly puts it, "Finally, someone called it out. There's a real tendency to equate 'doing digital things' with 'being digitally transformed.' But that's like putting a new coat of paint on a house with a cracked foundation. You can automate a broken process, but it remains broken—just faster."

Gupta warns that CMOs are at the risk of being blindsided by short-term automation gains, mistaking incremental improvements for fundamental change.

"A company might see a 5% increase in email open rates from AI personalization, but if their overall customer journey is fragmented, that gain is superficial. True transformation requires mapping the entire customer experience and leveraging digital tools to create a seamless and dynamic journey."