DMM-260 · Digital Marketing and AI · Week 1

Generative AI in marketing

What it is, how it works, and how marketers use ChatGPT and other tools.

robertbestwick.com/ai-digital-marketing/class-1/
Today

Agenda

By the end of class you can
  • Explain generative AI in simple words.
  • Describe how ChatGPT writes an answer.
  • Name 3 ways marketers use it, and 1 risk.
01

What is generative AI?

A short definition, a short history, and the key words.

Section 01

Three key words

Start with simple definitions.

1

AI

Computers doing tasks that usually need human thinking.

Example: a spam filter in your email.

2

Generative AI

AI that creates new content: text, images, audio, video or code.

Example: ChatGPT writes an ad.

3

Prompt

The instruction you type or say to the AI.

Example: "Write 3 Instagram captions for a café."

Sources: IBM, "What is generative AI?" (ibm.com/think); Google Cloud, "Introduction to Generative AI".
Section 01

A short history of AI

Click each year.

1950

Can machines think?

Alan Turing proposes a test: can a machine talk like a human?

Sources: Turing (1950); Dartmouth AI Project (1956); Vaswani et al., "Attention Is All You Need" (2017); OpenAI (2022, 2026); Reuters (Feb 2023); NobelPrize.org (2024).
Section 01

Why it matters now

Three numbers. Click each one.

Sources: Reuters, "ChatGPT sets record for fastest-growing user base" (Feb 2, 2023); OpenAI announcement (Feb 27, 2026); Statistics Canada, "AI adoption and productivity in Canadian firms" (2026).
Check

Four words to know

Tap each card.

Sources: IBM, "What are large language models?"; OpenAI Help Center, "What are tokens?"; Google Cloud, "What are AI hallucinations?"
02

How it works

No math. Just the big idea behind ChatGPT.

Section 02

From data to answer

Three steps happen behind every reply.

1

Train

The model studies billions of examples and learns patterns.

2

Prompt

You ask for something. Your words give it context.

3

Predict

It builds the answer one token at a time.

AI chat · illustration
Write a 1-line Instagram caption for a new Vancouver coffee shop.
Fresh beans, rainy-day warmth, and your new favourite corner in Vancouver.
Make it shorter and add a call to action.
Illustration based on a typical ChatGPT conversation. Source: Google Cloud Tech, "Introduction to Generative AI" (2023).
Section 02

It predicts the next word

An LLM picks a likely next token, again and again.

Our new coffee shop opens ___
Illustrative numbers only, to show the idea. Source: IBM Technology, "What are Generative AI models?" (YouTube).
Section 02 · Video

Watch: what are Gen AI models?

Listen for two words: “foundation model” and “risk”.

Video: IBM Technology, "What are Generative AI models?" (official IBM Technology YouTube channel).
Section 02

It predicts. It does not know.

Three limits every marketer must remember.

Hallucinations

It can invent facts, quotes and sources.

Bias

It learns from human data, so it can repeat human bias.

Privacy

Never paste private customer data into a free AI tool.

Rule: AI writes the first draft. You own the final version.

Sources: Google Cloud, "What are AI hallucinations?"; Office of the Privacy Commissioner of Canada, "Principles for responsible generative AI" (2023).
Check

Quick check

Tap an answer.

03

Traditional AI vs. generative AI

One predicts. One creates.

Section 03

Predict or create?

Click a row to compare.

Traditional AIGenerative AI
Main jobPredicts, sorts or recommendsCreates new content
OutputA label, a score or a choiceText, images, audio, video, code
In marketingSpam filters, ad bidding, product recommendationsAd copy, product photos, chatbot replies

Together: traditional AI picks who sees the ad. Gen AI helps write what it says.

Sources: IBM, "AI vs. machine learning vs. deep learning vs. generative AI"; Google Ads Help, "About Smart Bidding".
Section 03 · Demo

Before Gen AI: rule bots

Meet CC-Chatty. Type a question, or tap one below.

IF message hasTHEN reply
1schedule, classYour class schedule is on the LMS.
2assignment, submitUpload assignments to the LMS as a PDF.
3attendance, absentYou need 80% attendance in each course.
4hello, hiHi! Ask me about classes or assignments.
–ELSESorry, I don't understand.
CC-Chatty · class demo
Class demo, based on the CC-Chatty student assignment. Rule 3 uses the attendance rule in the DMM-260 Learning Plan 2026.
Check

Sort it

Drag each card, or tap a card and then tap a box.

Gmail filters spam emails
Writes 5 Instagram captions
Recommends your next Netflix show
Creates a new background for a product photo
Predicts which customers may cancel
Drafts a welcome email

Traditional AI predicts

Generative AI creates

04

Real-world applications

What it makes, where it adds value, and what can go wrong.

Section 04

What Gen AI can make

Weeks 4 and 5 go deeper into each type.

Text and code

Posts, emails, blog drafts, simple websites.

ChatGPT, Claude, Gemini, Copilot

Images

Product scenes, ad visuals, mood boards.

Adobe Firefly, DALL·E, Midjourney

Audio and video

Voice-overs, music, short video clips.

ElevenLabs, Google Veo, OpenAI Sora

Sources: product pages of each tool (openai.com, anthropic.com, gemini.google.com, adobe.com/firefly, elevenlabs.io, deepmind.google/veo).
Section 04

Where the value is

McKinsey studied 63 business uses of Gen AI.

$2.6–4.4T

possible value per year for the global economy

About 75% of that value is in 4 areas:

Customer operations ✓ Marketing and sales Software engineering Research and development

Marketing is one of the biggest winners. That is your field.

Source: McKinsey & Company, "The economic potential of generative AI: The next productivity frontier" (June 14, 2023). T = trillion US dollars.
Section 04 · BC case

When the chatbot is wrong

Moffatt v. Air Canada, BC Civil Resolution Tribunal, 2024.

1

The mistake

Air Canada's website chatbot gave a customer wrong information about a bereavement (family death) discount.

2

The defence

The airline said the chatbot was "responsible for its own actions".

3

The decision

The tribunal said no: the company owns everything on its website. Air Canada had to pay.

Source: Moffatt v. Air Canada, 2024 BCCRT 149 (February 2024); McCarthy Tétrault, "Moffatt v. Air Canada: A Misrepresentation by an AI Chatbot" (2024).
05

Generative AI in marketing

Two famous campaigns, three daily uses, three rules.

Section 05 · Case

Heinz: “A.I. Ketchup”

Created with Rethink, a Canadian agency, in 2022.

1

The idea

Ask an AI image tool to "draw ketchup".

2

The result

The images looked like a Heinz bottle.

3

The lesson

AI was a creative idea, not just a tool.

Sources: Heinz (official YouTube channel); Ad Age, "Heinz got A.I. to draw ketchup and it drew Heinz" (July 2022); The Drum (2023).
Section 05 · Case

Coca-Cola: two reactions

The same brand, two very different results.

1

2023: “Masterpiece”

Live action, effects and AI together. Praised by viewers.

2

2024: AI holiday ad

Made mostly with AI. Many viewers called it cold.

3

The lesson

People judge the feeling, not the tool.

Sources: Coca-Cola (official YouTube channel); Creative Bloq, "Coca-Cola's new ad is a branding masterpiece" (Mar 2023); NBC News, "Coca-Cola causes controversy with AI-made ad" (Nov 2024).
Section 05

How marketers use it every day

You will practise all three in this course.

1

Create

First drafts of posts, emails, ads and images.

Weeks 2, 4, 5

2

Personalize

One message, many versions for different audiences.

Week 10: email campaign

3

Research and plan

Customer personas, competitor summaries, SEO ideas.

Weeks 3 and 8

SEO = search engine optimization: helping a page appear higher on Google. Source: DMM-260 Learning Plan 2026.
Section 05

Three rules for this course

And for your future job.

Human in the loop

Always read, check and edit before you publish.

Protect data

No private client or customer data in free tools.

Be transparent

Say when AI made an image or a big part of the work.

Sources: Office of the Privacy Commissioner of Canada, "Principles for responsible, trustworthy and privacy-protective generative AI technologies" (Dec 2023); Canadian College Cheating & Plagiarism Policy.
Check

Quick check

Marketing edition. Tap an answer.

In-class assignment

Design your own IF/THEN bot

Build a rule-based chatbot, test it, and compare it with Gen AI.

1

Choose a topic and a name

Student life or a local business you know.

2

Write 5 rules + 1 ELSE

IF the user types a keyword, THEN your bot replies.

3

Test, reflect, upload

Try 3+ messages, fix your rules, download the PDF.

◉ Individual✕ No AI⬆ PDF to LMS

Open the assignment

robertbestwick.com/ai-digital-marketing/class-1/assignment/

Open assignment ↗

File name: DMM260_W1_FirstName_LastName

Do not copy the CC-Chatty college bot from the class demo. Write your own rules without AI: you are the "brain" of this bot.
In-class assignment

Steps and time

40 minutes. Open the assignment page to start.

1

Student info, topic and bot name

Parts 1 and 2 of the page.

5'
2

Write 5–8 rules and an ELSE

Use several keywords per rule.

15'
3

Test your bot and fix it

3+ messages: one should fail.

10'
4

Reflect, download, upload

2 short answers, PDF to the LMS.

10'
40:00
Open assignment ↗
Week 1 · Takeaways

Many thanks

1

Gen AI creates new content from patterns.

2

It predicts. You check.

3

Marketing is one of its biggest uses.

Next week: prompt engineering and brand strategy.
Assignment 1 is due in Week 2.

Speaker notes