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In the 21st century, the world is facing a fundamental challenge that can be compared to the industrial revolution of the early 20th century. If then humanity was adapting to mechanization and the emergence of the assembly line, now we are on the verge of the era of artificial intelligence (AI). This is not just another technological breakthrough, but a large-scale economic and social transformation that is changing the labor market, business models, and the way people and companies interact.
AI is already affecting our lives today: from automating production processes to optimizing advertising campaigns. Imagine a tool that analyzes thousands of creatives in a matter of minutes, automatically selects the perfect solutions for product promotion, and creates content that captivates the audience. In the field of affiliate marketing, these capabilities open up new horizons of analytics, automation, and efficiency.
But what does this mean for arbitrageurs? At first glance, AI looks like the best ally: it takes over routine work, increases the accuracy of analysis and allows you to focus on strategic aspects. However, this revolution has another side. Teams of dozens of people can be replaced by a few efficient AI tools, and entry-level specialists risk being left behind.
Are you ready for a world where knowledge of code and algorithms is more important than writing skills? Where the speed of adaptation to new conditions becomes the main factor of survival in the market? AI not only changes the rules of the game, but also requires us to be flexible and able to respond quickly to challenges.
In this article, we will take a closer look at how artificial intelligence is transforming affiliate marketing right now, what opportunities and risks it opens up for businesses, and what you can do to not only stay in the game but also become its leader. Read on to see how technology can turn challenges into your biggest advantages.
In the early 20th century, industrialization and mechanization of labor brought unprecedented technological progress, but also caused mass unemployment. According to historical reports, as a result of the Great Depression in the United States, the unemployment rate in the 1930s reached 25% and crime in urban areas increased by 20%.
Something similar is happening today. According to the World Economic Forum, by 2030, approximately 85 million jobs will disappear due to automation. At the same time, professions related to routine tasks will suffer the most: warehouse workers, drivers, and cashiers.
As during the Industrial Revolution, we are witnessing an economic shift that creates new opportunities for those who are ready for change and becomes a challenge for those who refuse to adapt.
Amazon is a perfect example of how large companies use automation to optimize their business. According to a report by Domus Web, the company has replaced more than 100,000 employees with 750,000 robots, which has allowed it to significantly reduce costs and increase productivity.
This approach is, of course, criticized for its social consequences: the layoffs of thousands of employees. However, from a business point of view, this decision is strategically beneficial. Similar processes are already being implemented in other industries, including finance, logistics, and affiliate marketing.
The affiliate marketing market, which has long relied on large teams of media buyers, analysts, and managers, is also facing significant changes. According to Business Insider, modern AI algorithms allow automating the optimization of advertising campaigns, testing creatives and identifying audiences.
This means that even large companies can successfully operate with significantly reduced staffs. For example, where 50 media buyers used to work, only 5-10 specialists coordinating the work of AI systems are needed now.
Small companies that used to be able to compete due to cheap labor now face the risk of being pushed out. If they don’t implement AI in their processes, their chances of surviving in the new realities will be drastically reduced.
This transformation allows companies not only to reduce costs but also to open up significant potential for development. Let’s take a look at how the initial cost savings can be directed to strategically important areas:
The funds that used to be spent on maintaining a large staff of juniors can be used to improve brand awareness:
This will allow the brand not only to maintain its position in the market, but also to conquer new niches in a competitive environment.
Process automation opens up space for improving the company’s reputation among potential employees:
Thus, the company attracts not quantity but quality, forming a team of professionals who are able to work for results in the long term.
Saving on junior specialists allows you to reinvest finances in raising salaries for key employees and creating more comfortable working conditions. This may include:
Such changes motivate employees to stay with the company and work with greater efficiency.
Due to the savings on the initial positions, the company can allocate funds to:
The spread of AI is sparking a heated discussion about the future of the labor market. On the one hand, automation really threatens millions of jobs. For example, a study by PwCsays that up to 30% of service jobs could be replaced by algorithms in the next 5 years.
On the other hand, technologies are creating new jobs in AI-related fields: from big data analytics to artificial neural network development. However, these professions require a high level of qualification, which creates challenges for retraining people who have lost their jobs.
History shows that illegal or “shadow” markets flourish in times of economic crisis. In the 1930s, during the Great Depression, illegal casinos, liquor bars, and gambling flourished in the United States.
Nowadays, according to Statista, in times of economic instability, there is an increase in interest in gambling, betting, and adt. These industries offer a quick solution to people’s needs for entertainment that does not require significant financial outlays but can distract from the crisis.
That is why periods of economic crises are not only challenges but also unique opportunities for businesses related to such industries. The benefits are obvious: the increase in demand for content related to entertainment, betting, or quick emotional “switches” creates the ground for rapid revenue growth. Especially successful are those companies that do not reduce, but rather increase their advertising budgets in such times, offering users new products, services, or promotions.
Investing in marketing during times of crisis is doubly effective. Firstly, due to reduced competition (as many companies cut their costs), the cost of advertising in certain segments decreases. Secondly, due to the increased demand for similar content, campaigns are able to get a much higher ROI (return on investment). For example, casinos that offer promotions with free spins or increased winnings can attract a huge flow of users even with a limited budget.
Thus, businesses operating in these areas have not only a chance to survive the crisis but also lay the foundation for future growth. The main thing is to analyze the market correctly, study the behavior of your audience, and use automated tools, such as AI systems, to plan advertising campaigns more efficiently.
We are on the cusp of a new era where artificial intelligence is transforming everything from the global economy to our daily lives. As with the Industrial Revolution, this transition will be accompanied by challenges such as massive labor market transformation, social change, and economic crises. However, these very challenges will open up new opportunities for those who are ready for change, able to adapt and think strategically.
Businesses that can remain flexible and progressive will have every chance to become leaders of the new time. Companies that integrate AI into their processes will be able to not only optimize costs but also create more efficient structures. For example, replacing junior specialists with AI systems allows freeing up significant resources that can be used to develop the brand, improve working conditions, increase salaries for key employees, or invest in new promising areas.
This approach not only optimizes processes, but also creates a powerful tool for building a long-term success strategy. At the same time, those who refuse to change risk remaining in the past, losing their competitiveness in a rapidly changing world.
Artificial intelligence is not only a challenge, but also a chance for businesses to turn a new page in their history. Those who are already using this tool to create the future will be successful in the new reality.