What are the pros and cons of AI lead generation?

There’s no denying that, whether we like it or not, Artificial Intelligence will become more and more commonplace as businesses attempt to secure an increasing number of new customers at an ever-lower cost per acquisition.

But human interaction has been a key part of the sales process for thousands of years and I suspect this will continue to hold vital significance long into the future.

Here are some of the pros and cons to consider if you are pondering your new business plans with an AI focus in mind.

Quality over Quantity

AI can analyse vast amounts of data to identify high-quality leads by assessing behaviours, interactions, and signals across different platforms. It helps in scoring leads based on their likelihood of conversion, ensuring sales teams focus on the most promising prospects.

However, there can be so many nuances in these leads that you may end up wasting time and resources targeting people that were never going to be interested or the right type of prospect for you in the first place. A quick phone conversation with a prospect (or potentially one of their colleagues) would fix this – and this is where the difference between quality and quantity becomes apparent.

To use a real world example, I have been repeatedly targeted by an AI generated email campaign that thinks our new business agency is both a cocktail bar (with a pretty similar name to Alchemis) and a beauty product. Being neither, the approach is not only a waste of time it can also be damaging for the brand image of the sender – particularly when they are trying to convey a message about how clever their AI marketing software is.

The Personal Touch

Whilst this is something that will almost certainly become better as AI learning develops in the future, we can usually spot the communications that are machine generated from the language or structure they use.

The flip side of this is that algorithms are pretty sophisticated these days – don’t they say that Facebook will know you’re getting divorced before you do?! Your preferences and online behaviour can be deftly harvested. In theory, this should improve engagement, make interactions more relevant and increase the chances of a response.

Enhanced Analytics

AI can process large datasets in real-time, uncovering patterns, trends, and insights that humans might overlook. This enables businesses to fine-tune their lead-generation strategies and better understand their target audience. However, this is on the presumption that your data is accurate to begin with, leading to the point below.

Data Dependency

AI-driven lead generation depends heavily on data. If the data used is outdated or inaccurate, it can lead to poor targeting or incorrect conclusions. Poor data integrity can also lead to engagement with the wrong type of leads.

Whilst this can just as easily happen in a new business campaign run by a human, the real-time feedback gathered when interacting with prospects can help hone the direction of a campaign and make adjustments to enable you to stay on the right track.

Dealing With Complex Interactions

AI is generally great when it comes to automating repetitive tasks. You can streamline processes and save time and money pretty quickly if you embrace the functionality available.

Where it may struggle is when it comes to handling any complex interactions or objections. I’m sure I’m not the only one who has felt my blood pressure rising when using a chatbot feature on a website or going through a series of options when calling my bank, whist all the time just wanting to speak to a person to handle my enquiry or resolve a situation.

Human interaction with a person is still essential when the conversation moves beyond basic questions or when any kind of bespoke solution is required.

Lead Saturation

If everyone is using similar AI tools for lead generation, the market can become saturated with the same type of outreach. This can mean leads are being overwhelmed by similar messages, which may reduce the chances of meaningful engagement.

Conventional lead generation may face the same challenges. However, the real-time interaction between a real sales person and a prospect will allow any adjustments to happen and the focus of a campaign to quickly change as necessary.

24/7 Availability

Whilst your b2b customers may not always appreciate being contacted outside office hours with outbound approaches, the one major advantage in terms of inbound leads is that AI is always on. This won’t solve the issue of dealing with complex interactions that I outlined above, but it does ensure that at least leads are captured and responded to at any time, regardless of time zones or working hours.

Integration

If the AI tools you are using can fully integrate into your CRM system you might enjoy seamless data synchronisation. This may provide a unified view of each lead’s journey, making it easier to manage interactions and track progress over time.

However, integrating AI lead generation tools with existing CRM or sales systems can be difficult and time-consuming. If AI tools don’t sync well with the rest of your system, it can lead to fragmented data, disjointed campaigns, and other inefficiencies.

Data Protection

You will need to ensure you are complying with data protection laws when collecting and using data for AI-driven lead generation. These may not be picked up by AI which is likely churning data on a global scale whilst you will be operating within legislation, such as GDPR, on a regional level.

Cost Efficiency

One of the biggest draws for using AI to generate new business will be the potential saving that might be achieved. Automating various aspects of lead generation with AI reduces the need for manual processes. If the AI can handle repetitive tasks such as data entry, follow-ups, and lead qualification, it will allow your team to focus on higher-level strategic activities.

People Buy From People

This is a mantra we stand by. There is no doubt that using AI can help enhance a new business campaign if you have all the correct components and processes in place. For example, AI could improve your activities by potentially providing leads based on better timing and these are the sort of factors we can embrace when we need to. However, the human touch should not be overlooked as personal connections will remain absolutely critical. Using these in tandem with this new technology could help with efficiency and insight to help you really get the most out of your lead generation efforts.