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Athena by Zeta: The Next Era of AI-Powered Marketing with David A. Steinberg and Dan Ives | CES 2026
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Athena by Zeta: The Next Era of AI-Powered Marketing with David A. Steinberg and Dan Ives | CES 2026

Zeta's Major Partnership Announcement and Insights on AI

Introduction to Zeta's Partnership with OpenAI

  • Zeta announced a significant partnership with OpenAI, generating excitement within the company.
  • Nate, who has experience at Meta, Microsoft, and the White House, played a crucial role in finalizing this deal.

Personal Connection Between Speakers

  • The speaker reflects on their unexpected friendship with Dan, highlighting their differing personalities but shared interests.
  • The speaker praises Dan for his intelligence and insights that have contributed to their collaboration.

Discussion of AI's Role in Technology

  • Dan expresses enthusiasm for discussing tech companies making impactful advancements, particularly in AI.
  • He notes that many investors fail to grasp the significance of what Zeta is doing amidst the AI revolution.

Historical Context of AI Development

  • The conversation touches on how companies often claim to be "AI companies" without substantial backing or understanding.
  • The launch of ChatGPT is identified as a pivotal moment when AI transitioned from science fiction to mainstream business discussions.

Zeta’s Evolution and Strategic Shift

  • Zeta began 17 years ago focusing on managing large pools of first-party data before evolving into automation and machine learning.
  • In 2017, Zeta pivoted its entire platform architecture to integrate AI more effectively rather than just layering it onto outdated systems.

Challenges Faced During Transition

  • The speaker recounts a board meeting where they proposed a three-year plan that would halt profits while reengineering the platform for better data processing capabilities.
  • There was significant silence during this proposal; consensus was lacking among board members regarding this strategic shift.

Importance of Data Processing Speed

  • The speaker emphasizes the necessity for rapid data processing capabilities to meet client needs effectively.
  • They highlight how increased data ingestion allows for immediate solutions and improved return on investment for clients.

Understanding Zeta's Unique Value Proposition

Customer Engagement and Churn Prediction

  • The discussion begins with the challenge of identifying which messages to generate for specific customers, particularly in relation to churn prediction.
  • When meeting prospective clients, Zeta emphasizes a strong return on investment (ROI), promising $6 to $7 back for every dollar spent on their platform.

Marketing Funnel Dynamics

  • Zeta positions itself within the marketing ecosystem by highlighting its ability to drive superior ROI compared to competitors, who typically offer less than half that amount.
  • The conversation outlines the traditional marketing funnel where large enterprises start at the top while insurgent companies begin at the bottom, eventually converging in the middle.

AI Integration and OpenAI Partnership

  • Zeta thrives in the middle of this funnel, leveraging its unique position to maximize returns as it integrates AI into its offerings.
  • The partnership with OpenAI is described as significant; it aims to embed OpenAI's capabilities deeply into Zeta’s Athena platform.

Athena's Development and Client Feedback

  • The integration of OpenAI is seen as foundational for Athena, enhancing customer interactions through advanced conversational capabilities.
  • Initial demos of Athena have received enthusiastic feedback from clients, indicating a transformative potential for their operations.

Historical Context and Product Evolution

  • Zeta has been developing AI solutions since 2017, positioning itself ahead of competitors by creating products that meet market demands effectively.
  • A previous product called Zoey served as a conversational interface that significantly increased client spending on Zeta’s platform by 200% to 225%.

Future Outlook and Strategic Positioning

  • As Athena enters full beta testing with positive client responses, there is anticipation for its broader rollout by quarter-end.
  • The development speed of Zeta’s conversational platform is attributed to early investments in voice technology and understanding customer needs.

Multinational Enterprise Insights

The Value Proposition of Free Offerings

  • A sales representative struggles to explain the cost of a new platform, leading to confusion about its pricing.
  • The speaker clarifies that the service is free initially, but users may end up spending significantly more on the platform later.
  • Discusses internal debates about whether to charge for services, emphasizing that charging a fee could limit growth potential.

Growth Strategy and Market Positioning

  • The company has consistently exceeded revenue expectations, projecting $1.7 billion in revenue next year after achieving 17 consecutive quarters of growth.
  • Emphasizes the importance of being at the forefront of data-driven strategies and how this positions them globally.
  • Predicts sustained organic growth rates exceeding 20% over many years due to strong customer retention metrics.

Customer Feedback and User Experience

  • Highlights a net retention rate of 114%, indicating strong customer loyalty and satisfaction with their offerings.
  • Customers are surprised by how easy it is to use Athena, dispelling initial concerns about complexity in learning prompts or usage.

Real-Time Interaction with Athena

  • Athena provides real-time answers directly within the platform, enhancing user experience by visually displaying outputs alongside responses.
  • Users can interact with Athena seamlessly; for example, they can request marketing strategies while receiving ongoing reports via email.

Cross-Selling Opportunities through Data Insights

  • Illustrates how Athena can identify customer churn risks based on online behavior patterns and suggest proactive measures for retention.
  • Describes a multi-use case strategy where insights from one area (customer acquisition) inform others (retention and monetization).

Challenges in Regulated Industries

  • Discusses partnerships aimed at navigating regulatory challenges in sectors like health care and finance as AI integration becomes more prevalent.

Industry Opportunities and AI Integration

Exploring Industry Segmentation

  • The discussion begins with a focus on identifying key industries that present significant opportunities for growth, particularly in relation to the Athena platform.
  • The speaker highlights the importance of understanding various verticals, noting that they operate across approximately 15 sectors without any single one dominating revenue streams.
  • Emphasis is placed on the dynamic nature of these verticals, where some may not perform well in certain years while others experience rapid growth.
  • The complexity of sales processes is identified as a critical factor; more complex sales allow their platform to deliver better results.

Complex Sales and Targeted Marketing

  • Industries such as financial services, insurance, health and wellness, automotive, and retail are highlighted as areas with intricate sales processes that benefit from advanced marketing strategies.
  • In automotive marketing specifically, the need for hyper-local targeting is discussed; consumers prefer dealerships within a short driving distance (5 to 7 miles).
  • Their platform can dynamically adjust marketing efforts based on proximity to dealerships and specific consumer preferences (e.g., car color or type).

Return on Investment through AI

  • The conversation shifts towards how their approach provides clear ROI for clients; effective attribution capabilities are crucial in demonstrating value.
  • They claim to offer significantly higher returns compared to competitors while continuously improving their methods over time.

Agentic AI Workflow

  • A unique feature discussed is their agentic AI system which integrates multiple agents into a cohesive workflow—most competitors have yet to achieve this level of integration.
  • One agent analyzes existing customers against a vast data cloud to identify potential new clients who meet specific criteria before market entry.

Continuous Improvement and Market Expansion

  • Another agent focuses on real-time targeting strategies while a third monitors attribution effectiveness, leading to substantial cost reductions for client acquisition over time (up to 386% lower costs).
  • This continuous improvement cycle not only enhances current operations but also opens up new markets by making the platform accessible for previously unqualified clients.

AI and Simplifying Complex Concepts

The Role of Athena in Automation

  • Discussion on how Athena enhances self-service automation for clients, making complex processes more accessible.
  • Emphasis on the simplicity of approach when working with corporations, avoiding buzzwords and focusing on clear communication.

Humor and Relatability in Business Conversations

  • Light-hearted moment about a cookie being put back, illustrating the importance of social interactions in business settings.
  • Acknowledgment of discomfort with compliments among New York Jewish culture, highlighting personal dynamics in professional relationships.

Philosophy Behind Simplicity

  • Importance of maintaining simplicity amidst the complexity of AI discussions at events like CES; avoiding jargon is seen as refreshing.
  • Reference to Fryman's theory: if you can't explain something simply, you don't understand it well enough. This philosophy guides their approach to AI.

Journey into Artificial Intelligence

  • Personal journey into understanding AI began nearly a decade ago through extensive reading and research on white papers from universities.
  • Recognition that explaining concepts simply is a significant compliment; it reflects deep understanding.

Market Perception and Positioning

  • Noted that investors have only recently recognized the company as an AI entity despite its early involvement in the field.
  • Discussion about how Athena will help monetize their efforts while also enhancing reputation by showcasing their pioneering role in AI development.

Challenges with Traditional Platforms

  • Critique of companies adding AI features to outdated platforms; emphasizes that true integration is necessary for success.
  • Explanation of inefficiencies when traditional marketing platforms rely on external data queries for ad serving, stressing the need for real-time processing capabilities.
Video description

Athena by Zeta is the superintelligent agent at the core of Zeta’s strategy to lead the next era of AI-powered marketing and accelerate the company’s next stage of growth. Live from CES at the ARIA Hotel in Las Vegas, CEO David A. Steinberg and tech analyst Dan Ives explore how Athena is transforming enterprises by personalizing each marketer’s digital workspace and adapting to individual goals through a fully conversational AI experience. They discuss Athena’s ability to remove friction between humans and AI and redefine the marketer’s relationship with technology, resulting in a higher return on investment. Learn more about Athena by Zeta: https://zetaglobal.com/athena-by-zeta/?utm_source=youtube&utm_medium=social&utm_campaign=adhoc About Zeta: Zeta Global is the AI-powered marketing cloud that leverages proprietary AI and trillions of consumer signals to make it easier to acquire, grow, and retain customers more efficiently. Offerings Include: Zeta Marketing Platform: https://zetaglobal.com/platform/ Customer Data Platform: https://zetaglobal.com/platform/cdp/ Customer Messaging: https://zetaglobal.com/platform/esp/ Athena by Zeta, The Superintelligent Agent Redefining Marketing: https://zetaglobal.com/athena-by-zeta/ Zeta AI Answers: https://zetaglobal.com/zeta-ai-answers/ Zeta AI Intelligence: https://zetaglobal.com/zeta-intelligence/ Zeta Agents: https://zetaglobal.com/zeta-ai-experience/ Zeta Marketing Platform (ZMP): https://zetaglobal.com/platform/ Zeta Data Cloud: https://zetaglobal.com/zeta-data/ Zeta Identity Solutions: https://zetaglobal.com/solutions/data-identity/ Zeta HIRO for Publishers: https://zetaglobal.com/platform/hiro/ Disclosure from Wedbush: The information herein is based on sources that we consider reliable, but its accuracy is not guaranteed. The information contained herein is not a representation by this corporation, nor is any recommendation made herein based on any privileged information. This information is not intended to be nor should it be relied upon as a complete record or analysis: neither is it an offer nor a solicitation of an offer to sell or buy any security mentioned herein. This firm, Wedbush Securities, its officers, employees, and members of their families, or any one or more of them, and its discretionary and advisory accounts, may have a position in any security discussed herein or in related securities and may make, from time to time, purchases or sales thereof in the open market or otherwise. The information and expressions of opinion contained herein are subject to change without further notice. The herein mentioned securities may be sold to or bought from customers on a principal basis by this firm. Additional information with respect to the information contained herein may be obtained upon request. Daniel Ives is on the advisory board of Zeta Global.