AI-powered growth hacking: benefits, challenges and pathways

Abstract

This paper aims to (1) unveil how artificial intelligence (AI) can be implemented in growth-hacking strategies; and (2) identify the challenges and enabling factors associated with AI’s implementation in these strategies. The empirical study is based on two distinct groups of analysis units. Firstly, it involves 11 companies (identified as F1 to F11 in Table 1) that employ growth-hacking principles and use AI to support their decision-making and operations. Secondly, interviews were conducted with four businesses and entrepreneurs providing consultancy services in growth and digital strategies. This approach allowed us to gain a broader view of the phenomenon. Data analysis was performed using the Gioia methodology. The study firstly uncovers the principal benefits and applications of AI in growth hacking, such as enhanced data analysis and user behaviour insights, sales augmentation, traffic and revenue forecasting, campaign development and optimization, and customer service enhancement through chatbots. Secondly, it reveals the challenges and catalysts in AI-driven growth hacking, highlighting the crucial roles of experimentation, creativity and data collection. This research represents the inaugural scientific investigation into AI’s role in growth-hacking strategies. It uncovers both the challenges and facilitators of AI implementation in this domain. Practically, it offers detailed insights into the operationalization of AI across various phases and aspects of growth hacking, including product-market fit, user acquisition, virality and retention.

Keywords: Artificial Intelligence, Automation, Decision-Making, Growth Hacking