We're All in the
Diaper Business Now
What happens when AI becomes the decision-maker and your customer is no longer the one choosing? At the Sintra Synergies Retreat, I sat down with marketing legend Mark Schaefer for a fireside chat that none of us in that room will forget quickly.
Every once in a while, a conversation reframes everything. This was one of those mornings. Over 82 minutes in a sun-drenched room in Sintra, Portugal, Mark Schaefer — author, marketing strategist, and one of the clearest thinkers in our field — laid out a picture of where marketing is heading that is both clarifying and, if you let it sink in, a little unsettling.
Mark didn't open with frameworks or slides. He opened with a grandchild and a diaper. And from that moment, the conversation never lost its energy.
The Shift Nobody Is Really Talking About
I asked Mark a simple question: what is the biggest shift happening in marketing right now that people still underestimate?
His answer cut straight to the psychological layer — the one underneath all the conversation about prompts and tools and model releases.
AI is rewiring the psychology of humans in real time. It's happening right before our eyes — and most marketers aren't thinking about it.
Mark Schaefer, Sintra Synergies Retreat
Mark referenced a remarkable research project: 300 futurists asked to answer the question of how AI will change humanity by 2035. Among their points of consensus was the concept of cognitive offloading — our growing tendency to delegate decisions to AI. But Mark said there's a newer, sharper term that goes further: cognitive surrender. Not just offloading tasks, but handing over agency itself.
Cognitive surrender is the phenomenon where people don't just use AI as a tool to support a decision — they let AI make the decision entirely. The human removes themselves from the loop not because AI is forced upon them, but because it feels frictionless, fast, and good enough.
For marketers, this has a profound implication: the entity you need to persuade is increasingly not your customer. It's the AI your customer delegated the choice to.
We're All in the Diaper Business Now
Mark has a gift for the concrete analogy, and this one landed hard in the room.
His new grandchild uses a lot of diapers. The baby is the end user. But you don't market diapers to the baby. You market to mom and dad — the decision-makers. If you want the sale, you appeal to whoever is actually making the choice.
The same logic now applies to all of us in marketing. AI is increasingly the decision-maker. Our customers are the baby. And we are all — every single brand — now in the diaper business.
We're not marketing to the end user anymore. The decision maker is AI. We're just abdicating our human agency, our human decision-making, to AI.
Mark Schaefer
This isn't abstract. Think about how you planned your last trip. Or how your team researched a vendor. Or how a consumer chose between two products with similar reviews. AI is already mediating millions of decisions every day — and that number is growing exponentially.
GEO Is the New SEO — But Brand Is Still the Override
The room was full of marketers, and the question of Generative Engine Optimisation (GEO) and Answer Engine Optimisation (AEO) came up naturally. Mark acknowledged the importance of the space, but immediately identified what he sees as the blind spot.
GEO is real, and it matters. But it's going to play out like SEO did: the companies with the biggest budgets and the most technical resources will win the algorithmic game. For most brands, trying to beat that fight directly is futile. So what's the strategy?
The override.
Mark told us about his trip to Paris. He let ChatGPT plan the whole itinerary — routes, timings, gluten-free restaurants at each stop. It did a beautiful job. But he had already decided he was flying Delta and staying at a specific type of hotel. Brand loyalty overrode the AI recommendation entirely. The AI filled in the gaps; the brand loyalty was non-negotiable.
Then came the bakery story. A friend who lives in France told him about a tiny gluten-free bakery in Paris — not famous, not optimised for AI recommendations, just deeply loved by someone he trusted. He went twice. A personal recommendation from a trusted human overrode everything the AI suggested.
Whenever AI suggests something, I'll consider it. But whenever a person says it, I'll do it.
Mark Schaefer
The implication is direct: in a world of cognitive surrender, the two most powerful forces in marketing are strong brands and word-of-mouth. Not because they're nostalgic. Because they are the things that override AI's default answers.
Trust in the Age of AI: The Thin Line Between Augmentation and Dehumanisation
My second question to Mark was about trust — what does it actually look like in an AI-driven world?
His answer was nuanced. On one hand, we are collectively surrendering trust to AI at a remarkable pace. On the other, every AI touchpoint is an opportunity to either reinforce or destroy the trust customers place in your brand.
Over-automating customer touchpoints is the danger zone. When companies remove the human from interactions that customers associate with care, attention, or service quality — they don't just become less efficient. They become less trusted.
But the inverse is also true: used thoughtfully, AI can make brands feel more human. Faster responses, more personalised communication, better anticipation of needs. The technology itself is neutral. The design choices are not.
Before automating any customer touchpoint, ask: Is this touchpoint part of our brand experience? Is the human presence at this moment part of what people say about us, remember about us, recommend about us? If yes — automate with extreme care, or don't automate at all.
Everything you do, and everything you don't do, becomes part of your brand. Automation is a brand decision, not just an operational one.
One participant in the room — Megan — had a powerful real-time realisation during this discussion. She was working with a client who had spent two years running a campaign around the message "we are about people." That same client was now pushing to automate to the point where there would be no human interaction left in their customer journey.
"They've just run a campaign for the last two years on 'we are the people.' And now they want to automate to a point where there's no people interaction. It's against the brand."
Mark's response was immediate: that client might need to go the other way entirely — and make a feature of the fact that they're the human alternative to what their AI-heavy competitors are doing.
Where Brands Get It Wrong: The ROI Trap
The third question I brought to Mark was about the most common mistakes brands make when adopting AI. His answer was, as he put it himself, a weird one — but it's the most important insight of the morning.
He told a story about a major US energy company that had bought ChatGPT licences for all its employees. A few months in, they were running a financial analysis to determine whether the $20-a-month-per-person cost was generating ROI. They were measuring every interaction.
Mark's response: "When Dubai implemented air conditioning, did they do an ROI on air conditioning?"
AI is going to be like electricity. It's going to be like air conditioning. It's going to impact every single thing that we do. If you're trying to measure ROI before people even know how to use it, that's a big obstacle.
Mark Schaefer
The point isn't that measurement doesn't matter. Mark is a measurement person. The point is timing. Measuring ROI before cultural adoption has happened is like measuring the productivity of electricity in a factory where half the machines haven't been plugged in yet. You'll get a misleading read, and you'll potentially kill the initiative before it has a chance to compound.
Culture-Led Adoption: The Son's Electronics Business
Mark shared what he considers the right model for AI adoption, drawn from his own son's business.
His son runs an electronics company. He gave all his employees access to AI tools, and then set one simple rule: whenever anyone came to him with a problem or question, his first response was "Have you tried to use AI to solve this?" That's it. No policy document, no mandatory training hours, no ROI dashboard.
Over time, people started solving their own problems. The questions stopped coming. AI became part of the routine, part of the culture. And the ROI arrived naturally — not as a target, but as an outcome.
Matt, another participant in the room, added an important dimension here. The companies that hand out Copilot licences and say "go play" rarely see the productivity gains. What they skip is the process-level change that has to accompany the tool-level access.
"You don't just put an eCommerce system in and go 'here's an eCommerce system,' without realising all the processes in the organisation need to change. It's one of those tools — it's another level of digital transformation."
The parallel to the 2009 social media moment was striking: at that time, everyone knew something big was happening but most organisations didn't know what to do. They hired a social media manager and hoped for the best. The companies that won were the ones that actually changed how they communicated. We're at the same inflection point with AI — and the same trap awaits those who treat it as a tool rather than a transformation.
Leadership Has to Go First
One of the threads that kept coming back throughout the morning was leadership. Megan shared that getting her team to use AI consistently had required active effort — launches, goodie bags, leading by example including deliberately sharing AI outputs that went hilariously wrong, to normalise the learning curve.
Mark took this further with a challenge to leaders specifically. Historically, the pattern for leaders around new technology has been to delegate it. "Go figure out this internet thing." "Let's get someone in for social media." That pattern won't work with AI.
To be an effective leader today, you don't necessarily have to have all the right answers — but you have to have all the right questions. And you can't know that unless you test the technology yourself.
Mark Schaefer
This isn't just about staying current. It's about retaining the ability to ask the questions that matter. If you haven't used AI to do parts of your own work, you don't know what it can and can't do — which means you'll either over-restrict it or uncritically accept it. Neither is a winning position.
The Over-Reliance Problem: Why 85% Isn't Enough
Later in the morning, the conversation turned to research — and this is where Mark raised a concern I think deserves much more attention than it gets.
AI is making market research faster and cheaper. An analysis that would have taken a human researcher weeks can now be generated in hours. The temptation is to replace expensive qualitative research with AI-powered synthesis. And for many organisations, that's exactly what's happening — to the point where Mark said he knows professional market researchers in the US whose work is simply drying up.
The problem is that AI research is, at best, an 85% solution — and it's the same 85% solution your competitors are using. The 15% gap is where real competitive insight lives: the offhand comment in the last meeting that pointed to an emerging regulatory shift, the visible stress of a customer trying to copy-paste a DNA sequence into an order form, the bakery recommendation from a friend who lives in Paris.
The things that really change a business — it's not something you see in a survey. You go out and visit the customer and you hear something, or you see something, that opens your mind to a new possibility.
Mark Schaefer
The lesson isn't "don't use AI for research." It's "use AI for the 80% and protect your investment in the human 20% that AI cannot replicate." The question AI doesn't know to ask is often the most important one.
Personal Brand as Insurance Policy
One of the more personal threads in the conversation was about individual professionals — particularly those in agencies — and what the AI era means for their positioning and career security.
Mark's view: a strong personal brand is now a non-negotiable insurance policy. In a world where AI can commoditise competence, the things that can't be replicated are your perspective, your network, your reputation, and your relationships. These don't live in a software licence.
This resonated particularly strongly given my own TEDx talk — "The Future CMO: Why Trust Is the Only Thing AI Cannot Scale" — which I referenced during the session. The room responded warmly to the idea that trust is the last genuine differentiator: the thing that persists even as everything else gets automated.
One participant in the room had been holding back from writing a book because she felt using AI in the process would be cheating. Mark's response:
Maybe AI is the thing that enables you to write a book that would never have been written before. That's exactly the way to use it — to put on a new superpower and unleash something on the world that couldn't have happened without it.
Mark Schaefer
The Final Mindset Shift: Pass the Mic
I closed the morning session by asking Mark for the one mindset shift he'd want to leave the group with.
He referenced a McKinsey study covering 200,000 customer journeys over a decade. What it found: two-thirds of sales were not driven by marketing at all. They came from what people were telling each other — social media posts, word-of-mouth, reviews, testimonials.
Mark's implication: if two-thirds of your sales come from what people say about you, the most powerful marketing investment you can make is in creating experiences so good, so worthy, so interesting that people can't wait to share them.
The most effective marketing we can do is to create something so interesting and so worthy that people can't wait to tell it to other people. Write the script — but pass the mic to somebody else.
Mark Schaefer
He pointed to two underused vehicles for this: experiential marketing — events where people can meet you, experience your brand, and leave excited — and brand communities, which he noted represent the marketing strategy of choice for around 80% of US startups right now.
His closing thought brought everything full circle: the most human company wins. Not the most automated. Not the most technically sophisticated. The most human. That might mean a combination of humans and AI — but it has to be a deliberate combination, not an abdication.
The Key Takeaways from the Room
After the break, I opened the floor for participants to share their own reflections. Here's what surfaced:
- AI adoption needs to come from the top. Culture change doesn't grow from the grassroots when it comes to AI. Leaders have to model it, require it, and normalise failure in the process.
- The human must be the final decision-maker. Every AI workflow should end with a human checkpoint. Not to slow things down — to maintain accountability and quality.
- Educating clients is a competitive advantage. Agencies that help their clients understand and implement AI build deeper trust and open new revenue streams. Transparency about how AI is being used isn't a liability — it's a differentiator.
- Brand loyalty is the most durable GEO strategy. You may not win the AI recommendation game on every query. But if your brand is loved, customers will override the default answer.
- The 85% trap is real. If your research and insights come entirely from AI, your insights are the same as everyone else's. Guard your investment in qualitative, human-centred discovery.
- The most human company wins. This isn't a soft sentiment — it's a strategic position. In a world of cognitive surrender, humanity becomes a differentiator.
About the Sintra Synergies Retreat
The Sintra Synergies Retreat is an intimate gathering I organise for senior marketing and business leaders — a space to think together, challenge assumptions, and build the kind of peer relationships that actually move thinking forward. Sintra, with its extraordinary landscape and slower pace, provides the right backdrop for conversations that go beyond the surface.
This particular session — an 82-minute fireside chat with Mark followed by group discussion — is exactly the format the retreat is built for. Not a keynote at a conference. Not a panel with five people being polite to each other. A real conversation, with real reactions, that creates real momentum.
Mark Schaefer is the author of numerous books including Marketing Rebellion, Belonging to the Brand, and his most recent work on how AI is changing our customers. He's one of the most generous minds in marketing — willing to challenge, to disagree, and to think out loud.
Having him at Sintra was a privilege. The conversation that followed proved why this format matters.
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