Brands clearly see generative AI as a major opportunity in advertising and marketing, as nearly two-thirds are already using it in some form in their marketing strategies, according to new research from the World Federation of Advertisers. But they’re also wary of the risks that come with using AI tools, and seem particularly keen to keep a tight rein on how they’re used, as eighty percent have expressed concerns about how their agency partners are using generative AI on their behalf.
Legal concerns are the biggest worry for brands, with 66 percent of major multinational brand owners surveyed by the WFA citing it as a danger. Ethical and reputational risks are also big concerns, for 51 percent and 49 percent of brands respectively.
These concerns reflect the fact that at present, few brands have set out clear terms on which use cases for generative AI they’re happy with. Just 38 percent of companies surveyed by the WFA have introduced terms prescribing how their partners can use generative AI on their behalf. Meanwhile just 29 percent have reviewed their media and creative contracts with partners to introduce AI-related clauses.
This is changing however, as 55 percent of brands are planning contract reviews, to cover the specific risks associated with AI usage as well as its potential benefits.
“Ensuring that agency contracts are updated to address gen AI is an action every brand should take,” said Greg Paull, co-founder and principal at R3, a consultancy specialising in agency relationships. “Not only is it effective risk management, it’s an opportunity for marketers and their agencies to initiate important conversations about the role of AI in their partnerships.”
Full steam ahead
While brands may hold concerns about how their agencies are using AI, they’re nonetheless quickly adopting generative AI tools themselves. Sixty-three percent are already using generative AI in some form across their marketing activities, with 40 percent using AI-generated content in marketing assets.
Of those who are using AI-generated content, most are using AI to enhance real places, images, or products (68 percent) and to write marketing copy and product descriptions (68 percent). Many are also using image creation tools to generate places, images, and products (59 percent). For the time being, brands are more comfortable using AI image tools to enhance real images or create generic images – only 32 percent are using gen AI to copy the likeness of existing places or products.
The primary motivation for using generative AI tools is efficiency, both in terms of time and cost savings. Seventy percent of brands cited this as a priority when it comes to using AI. But while some say they’re seeing significant cost and time savings, and even ROI increases in some cases, many still say it’s too early to measure the impact of their AI investments.
This isn’t stopping brands from upping their investment, however. Just nine percent of those surveyed said they don’t have any plans to use generative AI in their marketing activites.
