As investors and venture capitalists, we are constantly on the lookout for disruptive technologies that have the potential to reshape entire industries, writes Martin Tantow, Partner, Pegasus Tech Ventures.
Pictured: Martin Tantow, Partner, Pegasus Tech Ventures.
Right now, AI is at the forefront of this transformation, particularly in the marketing technology (MarTech) space. The industry is flooded with buzzwords like ‘AI-driven marketing’ and ‘Elevate your campaigns with AI,’ but many companies that claim to be ‘AI-powered’ are simply retrofitting artificial intelligence onto outdated infrastructures. While they may appear cutting-edge, these systems still rely on rigid, rule-based frameworks and siloed data, creating a significant gap between the promise of AI and its actual delivery.
AI on Old Foundations Isn’t Enough
The fundamental problem with legacy MarTech platforms is that they were not built with AI in mind from the beginning. Instead of being truly AI-native (or AI-first), they are retrofitted with AI components—bolted onto legacy systems to check the ‘AI’ box in their feature sets. These updates often include simple automation tools, predictive analytics, or machine learning algorithms designed to optimize specific tasks like email messaging or segmentation.
Salesforce’s Pardot and HubSpot are classic examples of companies that have taken this approach. They’ve incorporated AI features like predictive lead scoring, automated workflows, and conversational bots into their platforms, but these enhancements are layered on top of infrastructures built long ago. While they offer some improvements, these platforms are still hampered by the limitations of their original rule-based architecture.
The problem is that these systems still rely on the same underlying frameworks that they always have: static rules, predefined workflows, and siloed data. AI, when applied to these old foundations, can only do so much. It’s like trying to power a sports car engine with outdated, clunky parts. The result? Marketing that’s more generic, less effective, and ultimately harmful to the brand. Sure, you might see some improvement in performance, but you’ll never reach the full potential that a true AI-native platform can offer.
The Future Lies in AI-Native MarTech
The real investment opportunity lies in true innovation, specifically in AI-native platforms that are built with artificial intelligence at their core. We’re witnessing a fundamental market shift, one where companies are moving away from legacy MarTech systems toward AI-native platforms built from the ground up to fully exploit the power of AI.
Here’s what makes AI-native platforms different, and why they will inevitably replace the old systems:
- End-to-End Intelligence: Unlike legacy systems with bolt-on AI features, AI-native platforms offer true end-to-end intelligence. These systems don’t just automate processes—they learn from every interaction, optimizing in real time and evolving as customer behaviors shift.
- Adaptive, Not Static: Legacy systems rely on fixed rules and data models, while AI-native platforms are built to continuously adapt. They don’t need marketers to manually configure every workflow; instead, they dynamically adjust campaigns, channels, and messages based on live data.
- Personalization at Scale: Rather than applying a one-size-fits-all approach, AI-native systems use vast datasets to deliver hyper-personalized content. They understand not just who your audience is, but what they care about, how they interact with your brand, and the best channels to reach them.
- Seamless Data Integration: Legacy systems often silo data across different tools and platforms. AI-native systems, by contrast, are built to unify all marketing data, providing a holistic view of the customer journey from start to finish.
Breaking Free from Legacy Systems
Legacy systems, even with AI features, don’t truly understand the product they’re marketing or the nuances of the audience they’re targeting. They still operate on a shallow level—automating tasks but not offering deep, strategic insights. For AI to be truly transformative, it must be native to the platform, integrated into every aspect of campaign creation, execution, and analysis.
The ideal AI-native MarTech platform is a system that understands not just data, but the broader context in which it operates:
- Product Understanding: The AI-native system doesn’t just store product data; it understands the value proposition, market positioning, and competitive landscape. It can craft campaigns that highlight the unique “so what” of your product.
- Audience Insight: Rather than relying on generic buyer personas, AI-native systems analyze millions of data points to identify the precise pain points, preferences, and behaviors of your ideal customer. They understand what drives engagement, from messaging tone to content format.
- Channel Mastery: AI-native platforms go beyond simple A/B testing by analyzing the effectiveness of thousands of potential marketing channels, from social media platforms to podcasts. They can determine which channel will reach your target audience most effectively, optimizing distribution in real time.
- Message Optimization: These platforms don’t just automate message delivery—they adapt it. Whether the key motivator is fear of missing out (FOMO), social proof, or value-based appeals, the AI can tailor messaging to trigger the right emotional responses in the right audience.
- Continuous Improvement: An AI-native system never stops learning. It tracks campaign performance, analyzes customer interactions, and refines messaging and strategies to improve conversion rates. It’s not a one-and-done process—it’s a feedback loop that drives continuous optimization.
Kognitiv, Albert.ai, and GTMfusion are such examples of AI-native marketing platforms, designed with artificial intelligence at their core rather than retrofitted onto legacy systems. Kognitiv helps companies improve customer loyalty by delivering personalized experiences and optimizing customer engagement using data insights and machine learning. Albert.ai autonomously manages entire marketing campaigns, making real-time decisions to optimize targeting, bidding, and budget allocation without human intervention. GTMfusion integrates AI throughout the go-to-market process, using predictive insights and real-time learning to continuously refine marketing strategies and improve performance. These platforms represent the future of marketing technology by offering scalable, intelligent, and adaptive solutions that traditional systems cannot match.
The Beginning of the End for Legacy MarTech
As AI-native platforms become more prevalent, the gap between these new solutions and legacy systems will only widen. For businesses and investors alike, the message is clear: the future of marketing lies in fully AI-native platforms. The companies that adopt this shift now will gain a competitive edge, while those clinging to outdated systems risk being left behind in a rapidly changing market.