How AI is changing the cannabis industry

Long pressured by strict regulations and advertising restrictions, the cannabis industry is finding a powerful ally in artificial intelligence (AI).

From marketing agencies to dispensaries and software providers, AI is changing the way cannabis businesses operate, market and communicate with their audiences.

Platforms like Facebook, Instagram and Google that put restrictions on the advertising of cannabis, often block shadows or flag accounts.

Marketing in a controlled environment

But AI can be used to combine creative tactics, improve content content and optimize campaigns, says Josefine MANDITZ, founder of Newton, Massachusetts-based Marketing Agency Creative Group.

“AI helps sensitive content be more friendly to 21-plus audiences while avoiding common pitfalls such as content aimed at children or display usage,” he said. “It’s a human-led tool that supports our strategy, but creativity and consistency still require a human touch.”

AI also plays a role in research and audience support. Tools such as Alpine IQ and Springbig, which include AI features, help identify viewers by targeting behavioral audiences, geotargeting regions and differentiation.

This allows agencies to create hyper-targeted campaigns that comply with government-specific regulations while standing out in a crowded market.

AI for retailers

Cannabis retailers are also embracing AI to improve customer experience and efficiency.

Sweed, a Burbank, California-based software provider for cannabis stores, is integrating AI into its point-of-sale (POS) systems to recommend products based on customer usage and purchase history.

For example, if a customer makes a purchase of a certain difficulty, AI can suggest similar products, which increases the chances of excellence and customer satisfaction.

Sweeeed offers customers over 100 Segmentation Keys that they can use to determine factors such as Age or Spending Rate.

“Cannabis used to create one message and send it to all their customers,” said Rocco del Priore, founder of Thupha. Our effort is to send a few messages but it is referring. “

For example, a marketer can send general messages to 20 people and hope to see five of them resulting in a purchase. But with AI, you might target 10 people with a specific message and get seven of them to respond well, Del Priore said.

An email offering customers 20% off EVERY flower might not get much of a response, she said.

“But what if you get one that says you bought a lot of this and there’s this new product? That will build more trust because someone took the time to give you something that works,” she said.

“AI segmentation buttons allow distribution to target at-risk customers or high-value pharmacies and design re-engagement campaigns. It’s a level of sophistication that small operators can now achieve without the need for black workers.”

Sweeed’s tools also help marketers create personalized marketing campaigns, offering specific tools for organizations large and small.

By analyzing customer data, dispensaries can send relevant offers, such as discounts for customers left or recommendations for new products based on past purchases – a targeted approach that builds trust and loyalty among customers.

The Daily Green, a one-stop-shop grocer in New York City, uses AI to CrainStorm ideas and written content for campaigns, website blogs and marketing communications.

It can generate a list of potential ideas or a short form of content that a company can analyze, plan and produce in marketing materials, said Chris Thompson, the store’s director of operations and marketing.

“What would have taken a larger team several days to create can now be done by a smaller team in minutes with the help of AI,” Thompson said.

But everyday green doesn’t use AI for everything. It is good to be clear about the images or videos produced by AI, choosing to hire good artists and videographers to create custom content.

“The artist’s visual content felt very aligned with our brand vision and fit within the strict guidelines of cannabis compliance,” Thompson said.

Transforming cannabis science and personalization

At the cutting edge of AI in cannabis is bud-e, a platform that combines human genetics with plant genetics to recommend cannabis strains that match individual needs.

Buder-e Founder Colin Fraser said the AI-Powered system analyzes genetic markers to determine how Thc and other cannabinoids interact with the human endocanbaninoid system.

“Imagine being able to say, ‘I have back pain – what’s a good product for me?’ Our system uses AI to match your genes with the key to the right cannabis and tell you where to buy it,” said Fraser.

This level of experience not only reflects customer experience but also positions cannabis as a legitimate tool for Wellness and Medicine.

By capturing data on how products affect users, bud-e goes beyond clinical trials with the knowledge and trust of regulators.

The Future of AI in Cannabis

While AI is already making waves in the cannabis industry, its potential is just beginning to be realized.

As regulations evolve and technology advances, it is likely that AI will play an even bigger role in tracking, marketing and customer engagement.

However, industry leaders agree that AI is a tool – not a replacement for human creativity and technology.

“AI is like the Internet or email when it first started – it’s a game changer,” NowItz said. “But at the end of the day, it’s the people behind the incentives and strategies that make the difference.”

Margaret Jackson can be reached Margaret.Jackson@mjbizdaily.com.