AI Analysis: Rewards Abound, But What Risks Should Advertisers Consider?

Last week, I wrote about advertisers putting increasing trust in AI, both in the tasks they use AI tools for as well as their receptiveness toward ads being adjacent to AI-generated content.

And while new research from the World Federation of Advertisers finds that most (63%) brand owners are incorporating genAI into their marketing strategies (up from 45% last year), there are still lingering concerns.

“80% of multinational brand owners have expressed concerns about how creative and media agency partners are using generative AI on their behalf,” the WFA report says. “Legal (66%), ethical (51%) and reputation (49%) risks were also cited as major roadblocks to more widespread adoption.”

The research found that more than a third (36%) of companies surveyed had introduced terms regarding how genAI could be used by their partners on their behalf, with nearly half (48%) planning on doing so in the future. Additionally, 63% of brands have adopted responsibility principles.

“The primary motivation behind plans is to ensure compliance with data governance, introduce warranties and indemnities and ensure ownership of outputs,” the report says.

In terms of genAI use, 79% used it for content creation, 67% for content ideation, and 54% for task automation. 70% prioritized its use for time- and cost-saving efficiencies over marketing effectiveness, such as increasing revenue and ROI.

“While a few claim that genAI use is driving ‘better media ROI’, ‘50-80% increased efficiency’ and ’40-50% time saving for low-added value tasks’, many claim that it’s still too early to measure the true impact,” the report says.