Marketing in the AI Era: Understanding the Four Stages of AI Development

Christian J. Ward
November 30, 2023
5 min
Piaget's theory on cognitive development can give us insights into where AI is heading next.
Weird baby AI in Jean Piaget's Cognitive Development

In the rapidly evolving world of Artificial Intelligence (AI), understanding its developmental stages is crucial for marketers aiming to stay ahead of the curve. Interestingly, these stages show a striking resemblance to the cognitive development stages identified by the renowned psychologist Jean Piaget.

Jean Piaget and His Theory

Jean Piaget, a Swiss psychologist, revolutionized our understanding of children's cognitive development. In the mid-20th century, he proposed that children progress through specific stages of cognitive development, each characterized by unique abilities and ways of interacting with the world. His framework, rooted in systematic observation and open-minded analysis, remains a cornerstone in developmental psychology.

Before delving into the four stages of AI development, it's instructive to consider why a model like Piaget’s is beneficial in conceptualizing AI's evolution. The progression from Search AI to Conversational AI marks a significant advancement in how technology interfaces with our world. Initially, Search AI was all about providing access to content, a basic yet crucial step in the digital age. The advent of Conversational AI has transformed this landscape, offering access to knowledge through the most natural human interface: conversation. This shift is monumental, as it opens up a new realm where interactions with AI become as intuitive and rich as human dialogues. It sets the stage for subsequent stages, where Focal AI streamlines our interaction with data, emphasizing efficiency and relevance, and Decisional AI further suggests logical and beneficial choices. By paralleling these stages with Piaget's model, we gain a clear framework to understand the incremental yet profound advancements in AI, mirroring the cognitive growth seen in humans. This analogy helps us appreciate the nuanced evolution of AI from a tool that merely fetches information to a sophisticated advisor that enhances our decision-making capabilities.

The Four Stages of AI Development

1. Search AI: The Sensorimotor Stage

The first stage, Search AI, parallels Piaget's sensorimotor stage. It's where AI, like infants, learns through direct interaction with its environment. In marketing, this stage involves basic search functions, where AI helps retrieve information in response to direct queries. Think about keyword search as a babbling baby (it sounds like this, too!).

2. Conversational AI: The Preoperational Stage

Next, Conversational AI reflects Piaget's preoperational stage. Here, children start using language to explore and understand their world. Similarly, AI begins to interact using basic language, responding to and initiating simple dialogues, a key tool for marketers in engaging with their audience.

3. Focal AI: The Concrete Operational Stage

Focal AI aligns with the concrete operational stage of Piaget's theory. It represents a more advanced phase where AI, like school-age children, begins to think logically and process complex information. For marketers, this stage offers targeted and nuanced customer interactions, enhancing engagement and understanding.

4. Decisional AI: The Formal Operational Stage

Finally, Decisional AI mirrors the formal operational stage. This is the pinnacle of AI development, where AI, akin to adolescents and adults, can perform abstract thinking and make strategic decisions. In marketing, this translates to AI providing insightful recommendations and forecasts, aiding in sophisticated decision-making processes.

Before reaching our conclusion, it is important to address the boundary at the edge of Decisional AI — the threshold beyond which lies the realm of "Autonomous AI." While the concept of AI evolving into an entirely autonomous entity offers intriguing possibilities, it also raises significant concerns. There is a fine line between AI as a tool for enhancing human decision-making and AI making decisions independently. As we approach this frontier, it becomes crucial to exercise caution. The ideal scenario would not be AI assuming control but rather AI reaching its zenith as an exceptionally reliable advisor. This vision advocates for AI that supremely informs and supports human judgment rather than replacing it. In this perspective, AI remains a powerful aid, ensuring that ethical considerations and human oversight stay at the forefront of technological advancement.

Conclusion

The parallels between AI's development and Piaget's stages offer a unique perspective on how AI matures and integrates into our digital marketing strategies. As AI progresses through these stages, it becomes a more powerful tool, enabling marketers to transition from basic data retrieval to complex, strategic interactions. Understanding these stages helps marketers prepare for and adapt to the changing landscape, ensuring they remain at the forefront of technological advancements.

Christian J. Ward
Since launching his first data company in 1999, Christian Ward has focused his career on data strategy. He co-founded Jaywalk Incorporated, later acquired by the Bank of New York, and two additional data startups in the past 25 years. Today, as Yext's Chief Data Officer, he helps customers and partners turn data into AI and search opportunities. Ward co-authored the #1 Amazon bestseller, "Data Leverage," and has held executive data roles at Arizent, Data Axle, and Thomson Reuters. Ward's insights appear in top publications and industry conferences on data strategy and AI.
Christian J Ward
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