Xbox was slammed by customers for using "cheap AI art" (Image credit: ID@Xbox via X)
Why Brands Are Removing AI from Their Advertising – The buzz surrounding generative AI and its transformative impact on creative industries has been growing louder. While this technology promises groundbreaking advancements in creative work, it simultaneously raises concerns about potential job displacements.
Interestingly, despite advertising agencies showing enthusiasm towards integrating this technology into their workflows, their clients appear to be adopting a more cautious approach.
According to Ad Age, a prominent media publication focused on the advertising industry, there’s a notable trend emerging. An increasing number of businesses are incorporating specific clauses into their contracts with advertising agencies. These clauses explicitly prohibit creatives from utilizing AI-powered image generators and other generative AI tools without obtaining prior approval.
This growing apprehension from brands and businesses might stem from various reasons. Some concerns could revolve around the authenticity and originality of content produced using AI. There might also be worries about maintaining brand consistency and ensuring that the AI-generated content aligns with the company’s values and messaging.
While generative AI undeniably offers exciting possibilities for innovation and efficiency, it’s essential for brands to strike a balance between leveraging technological advancements and preserving the human touch and creativity that have long been the cornerstone of effective advertising.
The use of AI-generated imagery by brands has not always been met with positive reactions from consumers. In fact, there have been several instances where brands faced significant backlash due to the use of AI in their marketing campaigns.
For example, Uber Eats found itself in hot water when it used AI to create fictional, exaggerated images of menu items. This move not only confused customers but also upset restaurants that felt misrepresented by these unrealistic portrayals of their dishes.
Similarly, Lego faced criticism from its fan base after using AI-generated images in its Ninjago quiz, which fans argued did not align with the brand’s traditional aesthetic and values. Additionally, PlayStation encountered backlash for incorporating AI art into its social media content, with fans expressing concerns about the lack of authenticity and human touch in the AI-generated imagery.
These cases serve as cautionary tales for brands considering the adoption of AI in their creative processes. The negative reactions highlight the importance of maintaining authenticity and ensuring that AI-generated content resonates with the brand’s identity and values.
Moreover, beyond the concerns of brand image and authenticity, companies are also grappling with other potential risks associated with AI. There’s a growing apprehension that using AI could inadvertently introduce another brand’s characteristics or imprint into their content.
Furthermore, there are concerns about the potential misuse of their proprietary content to train AI models, raising questions about intellectual property rights and data privacy.
In light of these challenges and risks, brands are becoming increasingly cautious and selective about incorporating AI into their marketing strategies.
It underscores the importance of thoughtful implementation, transparency, and ensuring that AI complements, rather than replaces, the creativity and human touch that consumers value.
LEGO apologised for using AI-generated Ninjago art (Image credit: LEGO)
Detecting the use of AI-generated content in advertising has become a significant challenge for big brands, especially since many of them rely on external agencies to produce their advertising assets.
This outsourcing arrangement increases the risk that agencies might use AI-generated content without the brand’s knowledge or consent. To mitigate this risk, some brands are taking proactive measures by incorporating “No AI” clauses into their contractual agreements with agencies.
According to a report from Ad Age, an anonymous agency CEO revealed that several recent master service agreements his company signed explicitly prohibited the use of AI in any capacity without prior authorization. This prohibition encompassed not only the final output but also the use of AI in developing and refining creative concepts.
Beyond the challenge of detecting and controlling the use of AI, there are other valid reasons for brands to exercise caution when considering the adoption of AI in their advertising strategies. While some AI developers, such as Adobe, assert that their AI image generators are safe for commercial use and do not infringe upon artists’ copyrights, not all AI platforms can make such claims.
Some AI technologies have faced legal challenges over copyright issues, further complicating the landscape for brands.
Given these complexities and uncertainties, implementing a blanket ban on AI usage may seem like a simpler and more straightforward approach for brands than trying to navigate the intricacies of what AI applications are permissible and which ones are not. This cautious approach underscores the importance of protecting brand integrity, avoiding potential legal pitfalls, and maintaining transparency and authenticity in advertising practices.
The landscape surrounding the use of AI in advertising is further complicated by the potential for upcoming legislation. While there are currently limited regulations governing the use of AI-generated imagery, the European Union is in the process of drafting legislation that would mandate the identification of AI-generated content with a disclaimer.
This requirement could manifest as a subtle disclaimer, similar to the ‘image has been digitally altered’ disclosures already prevalent in many countries, although the exact form of this disclaimer remains uncertain.
In response to these evolving regulatory considerations, the Association of National Advertisers has recommended that brands incorporate clauses related to AI usage in their contractual agreements. This shift in perspective signifies a significant departure from the earlier enthusiasm among brands for leveraging AI as a unique selling point.
For instance, as recently as September, Coca-Cola attempted to capitalize on the AI trend by introducing a Y3000 flavor purportedly “co-created with AI.”
However, the rapidly changing regulatory environment and increasing concerns about transparency, authenticity, and potential legal implications have prompted brands to reconsider their approach to integrating AI into their advertising strategies.
In summary, the growing complexities surrounding AI usage in advertising—from potential backlash and copyright issues to impending legislation and industry recommendations—have compelled brands to adopt a more cautious and conscientious stance towards AI adoption.
This shift underscores the need for brands to balance innovation with responsibility, ensuring that they maintain trust and credibility with consumers while navigating the evolving landscape of AI in advertising.
