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AI marketing regulation is becoming increasingly important as marketers prioritize AI investment and utilize AI in their advertising campaigns. With the rise of AI technology, there are both benefits and pitfalls that advertisers need to navigate. This article explores key themes and considerations related to AI-generated or assisted content in advertising, AI assistance with campaign promotion or distribution, ‘AI-washing,’ and the labelling of AI-generated content.
AI-generated or Assisted Content in Advertising
When it comes to AI-generated or assisted content in advertising, few jurisdictions have specific regulations addressing this issue. However, general rules that apply to all advertising content still need to be followed. In the UK, the Advertising Standards Authority (ASA) has reiterated that the CAP Code is media-neutral and focuses on how consumers interpret ads rather than the role AI played in their creation.
Non-government industry bodies, such as the IPA and ISBA, have provided guidance for advertisers on the use of generative AI in advertising. These guiding principles emphasize the ethical and transparent use of AI to avoid undermining public trust in advertising.
Regulators also use AI tools to proactively search for online ads that may break the rules. The ASA’s new 5-year strategy for 2024-2028 is titled “AI-assisted collective ad regulation,” reflecting the growing use of AI in the advertising industry.
Advertisers must be cautious of the risks associated with AI-generated or assisted advertising content, such as misleading consumers. AI can produce content that appears real but is actually fictitious or exaggerates claims. It can also perpetuate biased or harmful messaging unintentionally due to the opaque workings of the underlying algorithms. Advertisers should ensure their AI-generated content complies with regulations regarding harm, offense, and negative stereotyping based on gender.
AI Assistance with Campaign Promotion or Distribution
AI is increasingly being used in ad deployment to target different audiences and maximize consumer engagement and conversion. Features like dynamic adjustments to ad timing, target audiences, and ad copy can result in more conversions. However, advertisers must be aware that they may not have complete control over what content appears and how it is distributed when using AI.
Regulators assess ads based on how they are interpreted by viewers, regardless of the advertiser’s intention or the role AI played in their deployment. Advertisers remain primarily responsible for ensuring their ads are compliant with regulations. They cannot rely on AI as an excuse for non-compliance.
Algorithmic bias is a significant concern in AI-assisted campaign promotion or distribution. A California court ruling highlighted how the targeted deployment of ads based on protected categories violated anti-discrimination laws. Advertisers must be aware of the unintended and undesirable outcomes that can arise from algorithmic deployment and take steps to mitigate bias.
‘AI-washing’
The rise of generative AI has led to the phenomenon of ‘AI-washing,’ where businesses make exaggerated claims about the use of AI in their products or services to mislead the public. ‘AI-washing’ can breach general advertising rules regarding misleading advertising, and regulators are expected to pay closer attention to this issue in 2024.
Advertisers should ensure their claims about AI usage are accurate and not misleading. Transparency is crucial in maintaining public trust and avoiding reputational damage.
Labelling of AI-generated Content
The proliferation of AI-generated or assisted advertising content has raised calls for clear labelling to inform consumers. However, few jurisdictions have specific regulations requiring the labelling of AI-generated content. Existing rules around misleading advertising still need to be considered.
China obliges generative AI service providers to add tags on content generated by their services, but this obligation primarily applies to AI firms rather than advertisers. In the UK, there is no current obligation to label AI-generated influencers, although rules around labeling and transparency in influencer marketing still apply.
Some platforms, like Meta and Google, are considering introducing obligations to notify users when content is AI-generated, particularly in the context of election advertising and social or political issues. However, this is not a general obligation for all AI-generated content.
Labelling AI-generated content can enhance transparency and help consumers understand the extent of AI’s role in its creation. However, there is no major consensus on labelling requirements at present.
Takeaways
In the evolving landscape of AI marketing regulation, advertisers must be mindful of the risks and challenges associated with AI-generated or assisted content. Compliance with general advertising rules, avoidance of misleading content and bias, and transparency in labeling are key considerations.
Campaigns deployed with AI assistance require comprehensive monitoring to ensure unintended consequences are mitigated. Regulators are increasingly focused on AI in advertising, and appeals to the nature of AI technology are unlikely to excuse non-compliance.
In the UK, non-compliance with advertising regulations can result in reputational damage and various enforcement actions by the ASA, including removal of paid-search ads and referrals to Trading Standards for potential criminal prosecutions. The proposed Digital Markets, Competition and Consumer Bill may expand the powers of the UK’s Competition and Markets Authority (CMA) to impose fines and other measures directly on market actors.
Adhering to AI marketing regulation is crucial for advertisers to maintain trust, comply with regulations, and avoid potential penalties. By navigating the pitfalls and leveraging the benefits of AI technology responsibly, advertisers can maximize the effectiveness of their advertising campaigns while ensuring compliance with regulatory requirements.
Source: AI Marketing Monster
