Advertisers Mandating Agencies to Disclose Use of Generative AI

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Advertisers are revising their contracts with agencies to ensure that they disclose when and how they used generative AI technology to produce their ads. Ebiquity’s Ruben Schreurs said that approximately 10% to 20% of its clients are making addendums to their agency contracts by updating their marketing policies to include new wording around AI. This means embracing innovation while acknowledging its faults and current shortcomings. Generative AI tools are used by advertising agencies to spin up hundreds of ad variations, produce media plans, and automate tasks, such as search engine optimization. However, AI carries risks, such as bias, data protection, or copyright infringement issues. One creative agency boss of BBDO Worldwide was even forced to send out an internal memo warning against using generative-AI tools for client work. The Financial Times reported that Ogilvy ad agency is advocating for advertisers and social media platforms to disclose the use of generative AI in influencer campaigns. Recent reports from Association of National Advertisers and the law firm Reed Smith addressed this by releasing a revised version of its media-buying contract template to include a new section stipulating that agencies obtain permission from advertisers before using artificial intelligence to deliver services to them. Advertisers are early in the stages of figuring out agreements with their agencies about how generative-AI can be used in the scope of their work. But the majority of marketers agreed that AI is unlikely to displace their agencies any time soon.

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Frequently Asked Questions (FAQs) Related to the Above News

What is generative AI technology?

Generative AI technology is a type of artificial intelligence that produces new content, such as ad variations, media plans, and automated tasks.

Why are advertisers revising their contracts with agencies in regards to generative AI?

Advertisers are updating their contracts with agencies to ensure that they disclose when and how they use generative AI technology to produce ads. This is to acknowledge the risks and faults associated with AI and address issues such as bias, data protection, and copyright infringement.

What percentage of clients are making addendums to their agency contracts to include new wording around AI?

Approximately 10% to 20% of clients are making addendums to their agency contracts to include new wording around AI, according to Ebiquity's Ruben Schreurs.

What are some risks associated with AI in advertising?

Some risks associated with AI in advertising include bias, data protection, and copyright infringement issues.

Has any creative agency warned against using generative AI tools for client work?

Yes, the creative agency boss of BBDO Worldwide sent out an internal memo warning against using generative-AI tools for client work.

What are some measures being taken to address the use of generative AI in advertising?

The Association of National Advertisers and the law firm Reed Smith have released a revised version of their media-buying contract template to include a new section stipulating that agencies obtain permission from advertisers before using artificial intelligence to deliver services to them. Ogilvy ad agency is also advocating for advertisers and social media platforms to disclose the use of generative AI in influencer campaigns.

Will AI replace agencies in advertising?

According to the majority of marketers, AI is unlikely to displace agencies any time soon.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

Advait Gupta
Advait Gupta
Advait is our expert writer and manager for the Artificial Intelligence category. His passion for AI research and its advancements drives him to deliver in-depth articles that explore the frontiers of this rapidly evolving field. Advait's articles delve into the latest breakthroughs, trends, and ethical considerations, keeping readers at the forefront of AI knowledge.

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