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Navigating AI's Ethical Maze
AI's Ethical Dilemma, Grammarly's Strategy, and The AI Newsletter Frontier
Turing's TOFU: AI-Driven SaaS Growth
Curated by Andrew Mounier
Hey there, SaaS Aficionados, AI Explorers, and Marketing Pros! Andrew Mounier here, I'm excited to welcome you to this week's edition. We've got a lot in store: from Baidu's AI controversy to Avante's $10M triumph and OpenAI's policy shift. Plus, we'll dissect Grammarly's marketing mastery in our "TOFU Quick Bytes" and explore AI's evolving role in tech and newsletters with Liam Lawson on "AI Unboxed Podcast." Get ready for a deep dive into the latest and greatest in AI, SaaS, and marketing insights. Let’s dive in! 🌐🔍🤖
Table of Contents
📰 This Week in AI & SaaS 📰
Baidu denies reports that its AI chatbot is linked to Chinese military research. An academic paper has claimed that the People’s Liberation Army (PLA) cyberwarfare division has been testing its artificial intelligence system on Baidu’s AI chatbot, ‘Ernie’. Despite denying the allegation, Baidu’s Hong Kong-listed stock has dropped more than 11.5%. Read more.
Avante, led by ex-Olive AI and Amperity execs, raises $10M: Avante (formally Avante Health Inc), an employee intelligence platform based in Seattle, has raised $10M in seed funding, led by Fuse Venture Partners. Read more.
AI models can be trained to lie. According to studies by Google-backed AI start-up, Anthropic, AI models can be trained to give fake information, and once an AI model exhibits this deceptive behavior, techniques to remove the deception could fail, creating a false impression of safety. Read more.
OpenAI quietly removes explicit bans on military applications, such as ‘weapons development’ and ‘military and warfare’. While OpenAI has claimed that this was done to accommodate military customers and projects they ‘approve of’, many feel this will have implications for AI safety, contributing to biased operations and increased harm, especially in military contexts. Read more.
Norwegian startup raises $100M in Series B funding, led by EQT Ventures, to bring robotic butlers into our living spaces and address global labor shortages. 1X, who raised $25M in Series A funding (led by OpenAI and Tiger Global) last year, will use this funding to further develop its first-generation android, EVE, which was seen serving commuters coffee at a train station in Oslo. Read more.
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Read of the Week:
The stuff that we’re seeing now is very exciting and wonderful, but…these are the stupidest the models will ever be.
This one’s more of a listen than a read, but it’s a fantastic conversation between Bill Gates and OpenAI’s Sam Altman. They talk about Gate’s initial skepticism of ChatGPT: “I didn’t expect ChatGPT to get so good”, what’s next for ChatGPT (spoiler: customizability, personalization, utilizing your own data, and….robots), Government regulations, which app Altman uses the most (and it’s not ChatGPT!), and what truly terrifies him about AI.
“Each technological revolution has gotten faster, and this will be the fastest by far. That’s the part that I find potentially a little scary…” - Sam Altman
💡 Marketing Moments with Mounier 💡
Hey everyone! I recently dug into Harvard Business Review's guide on GenAI for marketers, so that you don’t have to!
The Big Idea: It’s all about balance. GenAI opens up exciting opportunities in marketing, but it's not a one-size-fits-all solution.
🚀 The 4 Cs of Marketing-AI Opportunity 🚀
1️⃣ Customization
Nothing tops authentic, tailored experiences; customers LOVE custom-made. GenAI lets marketers do this at a never-seen-before scale.
2️⃣ Creativity
For marketers, GenAI smashes the ceiling for what is creatively possible.
Studies show that, with AI, marketers delivered content with an 18% increase in quality and originality.
3️⃣ Connection
GenAI makes consumer-generated content WAY more accessible, which creates connection with customers.
4️⃣ Cost Of Cognition
AI has skyrocketed marketers’ output using only a fraction of the time.
On the flip-side, you have❗️The 4 Cs of Marketing-AI Risk❗️
1️⃣ Confabulation
Ironically, AI can act human. It can create biased content with inaccuracies, so human oversight remains critical.
2️⃣ Consumer Reactance
Especially in human-reliant areas, the in-your-face use of AI can be met with huge pushback.
3️⃣ Copyright
Creative ownership is an issue that might raise some legal complexities. Building the right risk-mitigation strategies is key.
4️⃣ Cybersecurity
In a post-AI world, we’ve got unprecedented security challenges on our hands. Marketers should keep a finger on the pulse of cybersecurity protocols and be proactive about this potential risk.
Moving forward, consider the DARE framework:
⚡️ Decompose Roles
Break down your marketing roles into tasks. (Eg. a social media manager’s role consists of tasks like: generating ideas, creating content, hashtags, etc.
⚡️ Analyze Tasks
Give each task a score from 1 to 10 for opportunity vs. risk. (Eg. Using AI to generate ideas for social media posts would be a opportunity: 9 and a risk: 2. Whereas using it to fully create content for you might look more like opportunity: 7 and risk: 7 because of copyright, confabulation and consumer reactance.
⚡️ Realize Transformation Priorities
Chart each task in a 2x2 matrix to give you 4 quadrants. These 4 quadrants would be 1. High Opportunity, Low Risk, 2. High Opportunity, High Risk, 3. Low Opportunity, Low Risk, and 4. Low Opportunity, High Risk. Start AI-ifying tasks that lie in the first quadrant.
⚡️ Evaluate Iteratively
Keep an eye on evolving AI trends and, in tandem, keep going back to your matrix and reassessing your analysis.
🔥 Final Thoughts: Being wary of AI is understandable, but ignoring its potential is a missed opportunity. Find that sweet spot where AI enhances your work without taking over.
🎙️ AI Unboxed Podcast 🤖
How is AI reshaping the tech and newsletter industry? Discover this in our latest interview with Liam Lawson, editor-in-chief at AI Tool Report. Lawson shares his journey into AI, influenced by innovations like ChatGPT, and discusses AI's role in simplifying research and storytelling in the newsletter space.
He emphasizes the crucial balance between AI's capabilities and human creativity, particularly in ethical content creation and oversight. Exploring the realms of AI in everyday applications and medicine, Lawson also sheds light on the future of AI wearables and consumer technology.
👾 TOFU Quick Bytes: Grammarly Teardown 👾
Grammarly’s content marketing strategy teardown.
Grammarly, an AI-enabled writing assistant that reviews spelling, grammar, and punctuation, first landed in our browsers in 2009. Now, over 30 million people rely on Grammarly’s generative AI solutions to improve and strengthen the quality of their writing.
Strategy overview:
Grammarly’s target audience is broad: Anyone who writes, but more specifically, the tool is aimed at professionals like lawyers, writers, marketers, journalists, and other professionals who write emails, reports, and other documents.
Their content strategy isn’t focused on selling their product, it’s focused on soothing specific user pain points.
They utilize social media channels, specifically YouTube, with snapshot images, infographics, and short video summaries of their written content
They include strategic CTA pop-ups on their homepage and all website pages and blog posts to market their freemium model and generate leads
They use engineering marketing to create useful resources to bring new users on board eg. They’ve added more free products to their freemium model making their marketing efforts more effective
They use free product add-ons as strategic keywords (eg. plagiarism-checker and grammar-check) to acquire organic and paid ad traffic
Their blog content is centered around relevant keywords and search phrases and it’s categorized based on target audience groups or topics (eg. Tech Blog, Education Blog, Business Blog, and Developers Blog)
They don’t blast users with new content via emails. They leverage data on how each customer is using the product to personalize emails.
AI integration:
Grammarly uses insight data to establish how each user or customer is using the product. They leverage this data to personalize each email, highlighting the top errors made that week, and promoting articles that teach them how to overcome those errors (with Grammarly).
Performance Analysis:
Grammarly’s content marketing strategy is producing results: The free Chrome extension has been downloaded over 10 million times and the company has 6.9 million users that use the tool daily. They’ve grown to a valuation of $13 billion.
How?
They shifted to a freemium model in 2015, which grew Grammarly’s active daily user base to one million in the same year.
Their free add-ons (eg. the plagiarism and grammar checker) bring in around 500k organic site visitors per month, and the landing pages for these two free add-ons rank for about 9,000 organic keywords.
Their blog structure and content strategy brings in 10 million organic visits/month and ranks them for 434.1k keywords. Their SEO content is responsible for over 74% of their total traffic.
Their social media strategy drives 2.2% of all traffic, taking their total traffic to over 72 million, each month.
Critical Teardown:
What does Grammarly do well?
Their good engineering and content practices increase visitor time on-site, something that Google favors
Grammarly’s authoritative and informative blog content organically attracts highly reputable .edu and .gov backlinks
Their content is written using SEO best practices. i.e., keywords in the right places (title, meta description, headers, etc)
Because their optimized content performs so well organically, they only need to use paid search to boost pages and articles with competitive, buyer-intent keywords eg. “free grammar checker:”
Their content doesn’t focus on having the most features, being the cheapest, or having the most innovative tech. Instead, they’ve created a powerful, consistent, and differentiating business narrative that focuses on users' pain points. Each piece of content tells the story around ‘why’ the product (and company) exists: ‘’To improve lives by improving communication”. This builds authentic, emotional connections with customers.
They use entertaining posts to educate the market on how to communicate better. This earns passive mindshare from people who may not be ready to ‘buy now’, but when they are, they know where to go.
The CTA pop-ups that promote their freemium model, generate leads, which turn into new users, and ultimately paid users. First, they invite users to start solving their grammar-related problems, for free. From there, they upsell their services and encourage users to subscribe to their paid features.
They’ve built target market content clusters using thought leadership pieces, enhancing their strategic narrative and building authority.
What could Grammarly do better?
Grammarly’s content does a great job of establishing how to tackle various grammatical errors, but, they don’t show you how Grammarly, specifically, tackles those issues. They don’t demonstrate the product in their content pieces.
They don’t use customer success stories that contain vital trust signals.
Key Takeaways
Define an authentic strategic narrative that clarifies why your company exists. This will help you tell stories that project how your product is different, so your marketing efforts resonate with target customers on an emotional level.
If you can’t use engineer marketing to develop new product add-ons that bolster your freemium model and attract new users, consider creating valuable resources like guides, ebooks, etc. to add value.
Make content pieces product-led and show readers how to use your product to identify and solve issues, improve performance, create efficiencies, etc.. Weaving your product into content pieces drives your product’s value home, giving prospects a peek into your core solution, and increasing the chances of conversion.
Include user-generated content in your strategy to create organic trust signals.
Use customer data insights to personalize email communications, add value, and form deeper connections with your customers.
Tap into a passive market and increase time on site by focusing on content that educates and engages, rather than just selling the product.
Attract reputable backlinks by publishing authoritative, thought-leadership pieces.
What campaign or content marketing strategy would you like to see torn apart, next time? Let me know!
Andrew’s Final Thoughts
Wrapping up this edition of Turing's TOFU, it's evident that the AI and SaaS are rapidly evolving, with new challenges and opportunities emerging constantly. From navigating ethical considerations in AI to dissecting effective marketing strategies, staying ahead means being adaptable and continuously learning. As we look forward to the next edition, keep in mind the importance of balancing innovation with practicality, and always be ready to apply new insights to your strategies. Keep exploring, learning, and innovating in the dynamic world of AI and SaaS. Until next time, let's stay on the cutting edge.
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