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May 14, 2025

Why Your Funnel Isn’t Working and How AI Can Fix It

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AI is no longer a buzzword reserved for technologists and futurists; it’s an operational imperative for any marketer serious about driving growth. And yet, despite its obvious potential, there remains a striking disconnect in the marketing world. A recent study by the Connected Commerce Council found that 81% of small to mid, sized businesses believe AI will be crucial to their growth within the next two years. But on the flip side, research from Boston Consulting Group reveals that 74% of companies have yet to derive tangible value from their AI initiatives. This gap between expectation and execution speaks volumes, and it presents both a challenge and an immense opportunity. 

The truth is, many marketers are engaging with AI like toddlers in their parents’ Teslas, pressing buttons, playing with shiny features, but not really tapping into the incredible horsepower beneath the hood. AI is not a novelty tool, it’s a transformative lever that, when properly trained and directed, can radically enhance performance across every stage of the funnel. 

To unlock that power, businesses must understand a foundational truth: AI is only as effective as the context and instruction it’s given. Most models, whether it’s ChatGPT, Claude, or Gemini, are designed to be generalists. They don’t know your business, your customer segments, your funnel performance, or your goals unless you tell them, which is where most marketers go wrong. They input vague prompts and expect game, changing insights, but instead get a flood of irrelevant or generic output. However - when you feed AI detailed, structured, business, specific data, and when you continually refine and retrain it based on new insights, it can become more than just a tool. It becomes a strategic growth partner. 

One of the most powerful applications of AI in performance marketing is in funnel optimization. 

Funnels are known for being inherently chaotic. They’re composed of dozens of moving parts, ads, landing pages, offers, CTAs, follow, up sequences, sales scripts, traffic sources, and every component has the potential to either drive conversions or stall momentum. Effectively diagnosing what’s working and what’s broken requires a level of analysis and prioritization that can take weeks or even months with traditional methods. 

That’s where AI steps in. By training a custom GPT model with company-specific data, like: 

  • Product SKUs 

  • Historical performance metrics 

  • Customer behavior trends 

  • Target market profiles 

  • Campaign benchmarks 

Marketers can basically clone a knowledgeable, always-on growth strategist. These AI models can: 

  • Analyze funnel performance in real time 

  • Spot the biggest revenue-impacting leaks 

  • Recommend the next most profitable optimization step 

 

This approach isn’t theoretical; it’s already delivering results. 

At Machina, a growth agency founded by marketing veteran Dustin Lien, a custom, built funnel, fixing AI model helped a client increase qualified leads by 154%, cutting their cost per qualified lead from $206 to $63. That’s not an incremental gain - that’s a strategic pivot executed at scale, powered by disciplined AI deployment. 

The key to replicating those results? Keep it simple and stay consistent...

Start with what you’ve already got: 

  • Export your campaign data  

  • Pull in feedback loops  

  • Gather your performance indicators  

Feed all that into a model trained to ask the right questions. Even better - train your AI to flip the script and ask you things first, like: 

  • Who’s your ideal customer, really? 

  • What’s your average order value looking like? 

  • How long does it actually take to close a sale? 

Every time you interact, it levels up: 

  • The model gets smarter  

  • The strategy gets sharper  

  • And your funnel? Way stronger 

This methodology isn’t just for high, ticket service businesses. It applies just as well to e, commerce brands, affiliate marketers, insurance providers, and virtually any business that operates a digital funnel. Ecommerce sellers for instance, can train AI models with product sales data, seasonality trends, and customer reviews to uncover new promotional angles or identify sleeper products with untapped potential. Affiliate marketers can optimize their content and traffic, driving strategies by analyzing click behavior, refining copy, and testing which value propositions resonate most. 

The AI tools available today are more accessible and customizable than ever. With platforms like ChatGPT’s custom GPTs, Gemini’s tailored workflows, and Claude’s project, based memory, marketers can create intelligent assistants that don’t just follow commands, they learn, adapt, and grow with your business. 

But none of this works without you in the driver’s seat. AI is not a replacement for human marketers, it’s an amplifier. It needs your strategic oversight, your understanding of nuance, and your experience to guide its output. The marketers who will win in this new era are not necessarily the most technical- they’re the ones who can ask the right questions, supply the right context, and act on insights swiftly. 

The call to action is simple:  

Stop treating AI like a toy and start treating it like the power tool it is. Choose a part of your funnel and ask yourself, “How could AI or automation make this faster or better?” Then take action. Whether it’s building a simple custom GPT to analyze your ad performance or using AI to rewrite copy in your brand voice, start somewhere. Make progress. Iterate. Train. Improve. 

AI isn’t just a tool, it’s a competitive edge. That’s why you need to join us at Affiliate Summit East this August 4, 5 in NYC! You’ll learn how the industries greatest marketers are using AI to drive real, measurable performance gains. 

 

This approach and methodology were presented at Affiliate Summit West 2025 by Dustin Lien, founder of growth consultancy Machina and former marketing director at Digital Marketer. His team’s real, world application of funnel, fixing AI models proves that when you combine smart data, AI intelligence, and disciplined execution, extraordinary growth is not only possible, it’s scalable. 

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