Artificial intelligence (AI) has quickly become an essential technological advancement. This is particularly visible in the advertising and marketing industry, where generative AI (Gen AI) has become one of the top three business priorities for 83% of APAC executives.
Not only that, consumers are also becoming more demanding with 50% of consumers are able to spot AI-generated copies. As AI continues to reshape the advertising industry and the public becomes more discerning, is it necessary to report its use? Marketers who INTERACTIVE MARKETING spoke seems to be divided on this.
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Nathan Petralia, former managing director of Merkle Hong Kong, said advertisements made by AI should be declared. “Transparency is increasingly important in all forms of communication, especially in advertising. Audiences are increasingly sensitive to the sources of the content they consume, and AI is often viewed with a mix of fascination and skepticism,” Petralia said.
Petralia added that stating that an ad was made by AI can promote trust because it allows the public to make informed judgments. Additionally, ethical considerations surround AI-generated content, as it may be perceived differently in terms of creativity and intention.
“For some consumers, knowing that an ad was created by AI may affect their relationship with the message, while for others it doesn’t matter, as long as the ad is relevant and engaging,” he said. added Petralia.
Interestingly, a recent study by Vodafone Business reveals that six in 10 consumers in APAC say they trust organizations the same, or even more, when AI generation is used. Conversely, 39% of APAC customers say that using generation AI would make them trust an organization less.
On the other hand, Jeffry Gamble, creative director of GBA and dentu Hong Kong, is of the opinion that reporting the use of AI should be done on a “need to know” basis. “I think we have to ask ourselves why do we have to do this? Do consumers care if an ad is created by a person or by an AI, will that affect their decision making?” » Gamble said.
“So I guess it will depend on the content rather than whether it’s AI or not. If the product is AI-generated, I think the consumer needs to know that, but if it’s just about “a generic background, so, in my opinion, probably not,” he added.
Breaking down AI-powered ads
Aditya Kilpady, director of regional strategy at UM APAC, said the explosion of AI in content creation has given rise to an “AI wash”. Kilpady explained that “AI washing” occurs when brands use AI to generate content that appears authentic but is actually manipulated.
In fact, creators are already starting to reproduce, as Kilpady said, AI clones online. As such, proper guidelines to delineate AI-generated advertisements will become necessary, adding that:
“There must be appropriate policy guidance for disclosing the use of AI-generated content, such as the ‘paid partnership’ tag used in influencer campaigns.”
This is especially true since brands like Dove have pledged to never use AI to distort images of women in advertising, Kilpady explained. For other brands, accountability initiatives can be implemented in the form of disclosures as well as implementing a watermark on AI-generated content in influencer campaigns.
Kipaldy said:
“By declaring that an ad is powered by AI, we will champion a culture of influencer authenticity and transparency for consumers in an AI-powered landscape.”
Gamble agrees, adding that labeling AI-generated ads could help maintain ethical standards in advertising. This could be particularly important if AI is used to target specific consumer groups or create hyper-personalized content.
“However, whether this demarcation becomes mandatory will likely depend on how consumers perceive AI-based content over time. If audiences begin to demand more clarity to distinguish AI from AI-created content “Man, regulatory bodies or industry standards could evolve accordingly,” Gamble explained. .
Who should lead this initiative?
According to Petralia, the initiative to drive transparency in AI-powered ads should be a collective effort involving multiple stakeholders, including:
1. Advertising and marketing organizations: Industry groups and professional organizations should take the lead in creating guidelines and best practices for the use of AI in advertising, ensuring that they reflect the concerns and ethical requirements of consumers and advertisers.
2. Regulatory authorities: Governments and regulators may need to step in to establish clear rules for transparency and consumer protection, especially as AI technology continues to evolve.
3. Brands and advertisers: Brands should prioritize transparency and work with their partners to communicate clearly when AI is used in their advertising, setting an industry standard for honesty and ethical marketing. They can also help shape consumer expectations by leading the conversation around AI in advertising.
4. Technology providers: Companies developing AI tools for ad creative are also expected to play a role. They can introduce features to easily identify AI-generated content, as well as work with advertisers to ensure their tools are used responsibly.
“Ultimately, it will take a collective effort to ensure that consumers remain informed and that AI is used ethically and transparently in advertising,” Petralia added.
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