Coca-Cola’s Global CMO Reflects on How AI Will Revolutionize Marketing

Coca-Cola’s global Chief Marketing Officer, Manolo Arroyo, has predicted that artificial intelligence (AI) will fundamentally transform the marketing profession.

Speaking at the Cannes Lions Festival for Creativity on June 17, Arroyo emphasized that 90% of Coca-Cola’s AI experiments are aimed at driving topline growth and enhancing marketing effectiveness, rather than just improving efficiency.

Arroyo noted the tremendous potential of AI to reshape marketing, stating, “We are by no means perfect, but we see tremendous potential in the future and I have no doubt [AI] will completely reshape the profession of marketing as we know it.”

In 2019, traditional channels accounted for 90% of Coca-Cola’s media investment. However, by early 2023, the company began collaborating with OpenAI. A dedicated team was tasked with quickly exploring potential AI applications, encouraged to innovate and rapidly iterate.

Highlighting the importance of staying ahead in AI, Arroyo mentioned that upskilling on martech and next-generation AI is his major learning objective for the year. “We are excited to be at the forefront of this technological wave,” he said.

Arroyo shared insights on the company’s innovative spirit, citing the ‘Real Magic’ brand platform launched in 2021, which was developed by a team of young creatives known as The Mavericks. This initiative reflects Coca-Cola’s commitment to fostering creativity and innovation within its ranks.

Mondelez’s senior vice-president of global brands, Mie-Leng Wong, who joined Arroyo on the panel, discussed her company’s early experiments with AI. She highlighted the success of Cadbury India’s Generative AI campaign, which created over 300,000 personalized ads featuring Bollywood star Shah Rukh Khan, stating, “Gen AI is going to democratize creativity.”

Arroyo also reflected on the importance of leadership in fostering creativity, noting the pivotal role of Coca-Cola’s CEO James Quincey in resetting cultural expectations and encouraging diverse perspectives. “At Coke, we had one of the most spectacular failures ever in history with New Coke, which had a toll on our culture for some time. Our current CEO James Quincey came into the company and completely reset expectations,” he explained.

Arguing marketers often “lose sight” of their ability to innovate, he encourages his team to innovate everything “that touches the brand”, looking for perspectives from young talent with “no filters” on the past.

Zach Kitschke, Canva’s CMO, also shared his experiences during the panel. He recounted how Canva’s collaborative culture helped define its brand identity and underscored the importance of flexibility and creativity in hiring practices.

In summary, the panelists agreed that the evolving role of the CMO involves being an enterprise leader, focused on aligning marketing strategies with broader business goals to drive growth and innovation. “Marketing is more than this frivolous role that sometimes in the past was the case,” Wong added. “If you connect with the value and relevance your brands bring to consumers, you have a really magical mix.”

Arroyo concluded by emphasizing the dual responsibilities of modern CMOs, stating, “You wear two hats, continually, always, every single day.”