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Series IconDentsu Design Talk [88]
Published Date: 2017/02/03

Professor Matsuo, which way will the future of AI and advertising go? (Part 2)

Yutaka Matsuo

Yutaka Matsuo

Graduate School of Engineering, The University of Tokyo, Institute for Advanced Research

Susumu Namikawa

Susumu Namikawa

Dentsu Japan

This Dentsu Inc. Design Talk, titled "Which Way Will AI and Advertising Go?" features Associate Professor Yutaka Matsuo from the University of Tokyo, a top researcher in AI, hosted by Dentsu Inc.'s Susumu Namikawa. We imagine a future where artificial intelligence is commonplace and the role of advertising within it, exploring questions like: "What is happening in AI right now?", "How will AI be utilized in advertising?", and "What can only humans do in the advertising world?"

(From left) Yutaka Matsuo, Specially Appointed Associate Professor, Institute for Advanced Study, Graduate School of Engineering, The University of Tokyo
Susumu Namikawa, Creative Director, Business Management Bureau, Dentsu Inc.
 

How Artificial Intelligence Contributes to Advertising

Namikawa: Building on Professor Matsuo's remarks, I'll discuss a project I'm currently working on and how artificial intelligence contributes to advertising.

Inspired by "Advanced Chess," where humans and AI team up to compete, I wondered if combining "human creativity" with "technology like data analysis and AI" could improve advertising performance. That led to the creation of the project team "Advanced Creative Center" at Dentsu Digital Inc. in September 2016.

Looking back at the evolution of digital marketing over the past few decades, advertising has become highly accurate in presenting individuals with what they want. Artificial intelligence is increasingly being used in this targeting domain. It extracts life data—such as gender, weather, current location, and previously visited websites—and uses AI to infer what a person wants right now.

For example, if someone visiting a recipe site is tagged as "cooking," they might have previously seen ads for restaurants. Now, however, deep learning is used to improve targeting precision, such as showing ads for hot pot dishes, which yield better results.

Thanks to the evolution of digital advertising over the past few years, customer acquisition performance has already reached a remarkably high level of precision. The next frontier for the digital advertising world is the realm of "branding."

 

2017: The First Year of Branding Through Digital Advertising

Namikawa: I believe 2017 will be the "Year One of Branding through Digital Advertising." With the ability to deliver rich expressions like video on smartphones, attention is increasingly focused on branding through digital advertising.

I believe we've entered "Phase 2" of digital advertising. "Phase 1" was the data industrial revolution, where companies like Google and Facebook built digital platforms. "Phase 2" is where creativity rides atop that data industrial revolution to move people's hearts. This is a challenging and incredibly fascinating area.

In September 2016, I participated in planning and hosted the event "TCC Kotobamirai Conference." There, I arranged a discussion between copywriter Takashi Nakahata and researchers from IBM Watson (a human-interaction response system powered by learning AI). When Watson reads text, it can identify sad or happy words based on context. Hearing this explanation, Nakahata remarked, "Elementary school boys sometimes tell girls they like 'I hate you'," and while the discussion went nowhere, that moment was incredibly amusing (laugh).

While creativity and technology sometimes clash, humans are a collection of many functions. Among these various functions, there may be some where artificial intelligence outperforms human capabilities.

In Professor Matsuo's book, he writes, "Thinking about artificial intelligence means looking at humanity. It means becoming more self-aware about what it means to be human." I believe that deepening our understanding of humanity will advance our collaboration with artificial intelligence.

Matsuo: Thank you. What you said, Mr. Namikawa, is extremely important. We should steadily implement AI optimization wherever possible. Of course, there are technical challenges, but we can overcome them step by step as we move forward.

Regarding copywriting, it's easy to have multiple drafts created via crowdsourcing, have AI evaluate their quality, retain only the best ones, and evolve the process.

However, there's a long-standing question in AI: "Can a monkey write 'Shakespeare'?" If you let a monkey roll dice from A to Z, eventually it might produce the sequence "Shakespeare." But it would take an enormous amount of time. This illustrates that what's theoretically possible and what's practically usable are two different matters.

Earlier, Mr. Namikawa mentioned the theme of "brand." Since "branding" requires long-term optimization, it might be difficult for AI, which excels at short-term optimization. Humans can build brands quickly using various forms of wisdom, right?

Namikawa: I see. I hadn't considered the perspective that branding with AI is difficult precisely because it requires long-term feedback. Conversely, if short-term feedback is available, even branding could potentially involve greater AI involvement.

Matsuo: For example, I've never climbed Mount Everest. But I can predict it would be so cold I'd likely die if I actually went there. In machine learning terms, this means even without direct experience, I achieve an effect nearly equivalent to having experienced it. That's because I've learned knowledge accumulated over hundreds or thousands of years of human experience through language.

The same applies to advertising domains like branding and copywriting. Humans abstract successful examples from other brands and leverage that knowledge for their own strategies.

Moreover, humans can get inspiration for completely unrelated advertising ideas—like seeing monkeys at a zoo and suddenly envisioning an ad concept that has nothing to do with monkeys. We transfer knowledge across different domains, effectively increasing our pseudo-learning data. Current deep learning technology cannot do this.

Namikawa: So, for now, humans hold an advantage in thinking through long-term feedback and connecting unrelated knowledge. However, brands are ultimately abstract concepts residing in people's minds. Deep learning also involves machines holding abstract concepts during their learning process. In a sense, I think there are similarities.

Matsuo: If we could somehow verify how brand concepts are formed in users' minds, we might be able to efficiently create brands using AI technology.

Namikawa: What would that mean for advertising?

Matsuo: As technology evolves, pursuing overly short-term KPIs will likely lead to deterioration in long-term KPIs. Consequently, technology will probably evolve toward improving short-term KPIs without compromising long-term ones. In that context, I believe we'll gradually see the realization of "moderate comfort and enjoyment."

 

How do we uncover latent desires?

Namikawa: A common example of unmet human desires is the difference between "bookstores" and "Amazon." While Amazon optimizes and recommends exactly what you want, bookstores make you want to buy a book that suddenly catches your eye—one you had no interest in before. How will artificial intelligence and technology recreate those serendipitous encounters?

Matsuo: I believe that is precisely the domain humans must occupy. For artificial intelligence, discovering unspoken desires is extremely difficult.
To uncover the unspoken, AI itself needs to possess the evaluation function designed to find it. Humans, through long evolution, have developed an extremely complex evaluation function.

Namikawa: So, are you saying that unspoken desires emerge through the "evaluation function" humans possess?

Matsuo: Exactly. Evaluation functions are built from instincts and emotions cultivated through evolution. With that, I believe a person with good intuition can sense unspoken desires.

Namikawa: I see. So, if those instincts and emotions could be deciphered, artificial intelligence might be able to create expressions that many people find appealing.

Matsuo: That's right. However, I don't think AI can yet produce copies that are truly human-like. While the quality might be lower, tasks like producing large volumes quickly or automating the creation process could be handled by AI.

By having AI handle parts of the work, humans can focus on more challenging tasks. As a result, overall performance will improve.

Namikawa: I also feel we're moving in that direction. It's about understanding what AI can do and what humans can do, and then collaborating based on that understanding.

 

What will the future of advertising look like with AI?

Namikawa: As AI becomes more widespread, what role will advertising and media play?

Matsuo: I believe media has added value beyond purely advertising value.
Recently, when talking with newspaper publishers, I've come to believe that one of the core purposes of newspapers is to "create shared knowledge." For example, when someone says, "That news was on the front page of today's Nikkei, right?" and the other person knows it too, it reduces the cost of communication. Creating this state where both parties know the same things is crucial.

However, today's digital world delivers personalized information one-to-one. While this excels in optimization, it undermines the function of creating shared knowledge.

Ideally, while delivering personalized information, there should be a way to build an information ecosystem within that community that fosters important shared knowledge. Yet, from what I've observed, no media outlet has achieved this.

Namikawa: I agree that mass advertising and media create shared knowledge, reducing communication costs. The effect of running a TV commercial is that people can understand to some extent with just one phrase like, "That's the product from that commercial." In other words, it reduces communication costs. So, the emergence of shared knowledge within a community is a good thing.

Matsuo: It is a good thing. Communication can proceed based on that shared knowledge, and people can even exchange jokes. It's neither traditional mass marketing nor personalized ad delivery; I think this middle ground is crucial.

Namikawa: Mass advertising is created by the originating company, and newspapers are edited by the newspaper company. Is there potential for shared knowledge to emerge through a more open method, involving more people?

Matsuo: I believe so. There should be a significant number of communities where shared knowledge needs to be created, and it's impossible to do everything manually. That's where effectively utilizing artificial intelligence might make it achievable.

Namikawa: We've reached the end of our session. I hope today's discussion helps us predict the future. Professor Matsuo, thank you very much.

<End>
You can also read the interview here on AdTie!
Planning & Production: Dentsu Live Inc. Creative Unit 2nd Creative Room, Aki Kanahara

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Author

Yutaka Matsuo

Yutaka Matsuo

Graduate School of Engineering, The University of Tokyo, Institute for Advanced Research

Graduated from the Department of Electronic and Information Engineering, Faculty of Engineering, University of Tokyo in 1997. Completed the doctoral program at the same university in 2002. Doctor of Engineering. Joined the National Institute of Advanced Industrial Science and Technology (AIST) as a Researcher the same year. From October 2005, served as a visiting researcher at Stanford University. From 2007, Associate Professor at the Center for Knowledge Structuring, Institute of Advanced Research, Graduate School of Engineering, The University of Tokyo, specializing in Technology Management Strategy. From 2014, Co-Director and Specially Appointed Associate Professor of the Global Consumer Intelligence Endowed Chair, Technology Management Strategy, Graduate School of Engineering, The University of Tokyo. Specializes in artificial intelligence, web mining, and big data analysis. Received the Paper Award (2002), 20th Anniversary Commemorative Project Award (2006), Field Innovation Award (2011), and Merit Award (2013) from the Japanese Society for Artificial Intelligence. Served as Student Editorial Committee Member and Editorial Committee Member of the Japanese Society for Artificial Intelligence, becoming Deputy Editor-in-Chief in 2010 and Editor-in-Chief and Director in 2012. Served as Ethics Committee Chair since 2014. One of Japan's top artificial intelligence researchers.

Susumu Namikawa

Susumu Namikawa

Dentsu Japan

Specializes in AI-driven projects and social initiatives connecting businesses and society. Launched Dentsu Creative Intelligence in September 2022. Initiated joint research with the University of Tokyo AI Center. Serves as Unit Leader of the Augmented Creativity Unit. Author of numerous publications including "Social Design" (Kiraku-sha) and "Communication Shift" (Hatori Shoten). Recipient of multiple awards including the Yomiuri Advertising Grand Prize and the Dentsu Advertising Award.

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