Transformation of Marketing Management Practices in the Era of Artificial Intelligence: Developing a Conceptual Model Through Grounded Theory Among Indonesian Digital Businesses

Abstract

The rapid advancement of Artificial Intelligence (AI) has fundamentally transformed marketing management practices. However, limited understanding remains regarding how this transformation unfolds within the day-to-day activities of organizations. This study aims to explore how AI reshapes marketing management practices and to develop a conceptual model that explains this transformation. A qualitative research design employing a constructivist grounded theory approach was adopted. Data were collected through semi-structured, in-depth interviews with 15 participants, including marketing managers, business owners, and marketing practitioners from diverse organizations across Indonesia that have implemented AI in their marketing activities. Data analysis was conducted iteratively through initial coding, focused coding, constant comparative analysis, and analytical memo writing until conceptual saturation was achieved. The findings identified five conceptual categories: AI accelerates and personalizes marketing activities, the role of marketing managers shifts toward more strategic functions, new patterns of human–AI collaboration emerge, effective AI implementation requires governance and ethical considerations, and the extent of AI-driven transformation varies across organizational contexts. The findings demonstrate that AI does not replace human expertise but rather enhances organizational decision-making through complementary collaboration between AI's computational capabilities and human strategic judgment. This study contributes to the development of a conceptual model of AI-enabled marketing management transformation and offers practical implications for organizations seeking to design AI adoption strategies that are effective, responsible, and customer oriented.