Vast majority of brands are concerned about agencies’ use of generative AI  

As brands and agencies grapple with the ethics and practical application of AI, most brands (80%) are concerned about how their creative and media agency partners are using generative AI, according to new research from the World Federation of Advertisers (WFA).  

However, despite widespread concerns, brands aren’t shying away from using AI. Indeed, almost two-thirds (63%) are already using generative AI in their marketing – this is up from 45% last year.  

Greater AI adoption is being held back by legal concerns (66%), ethical (51%) and reputational (49%) worries. Meanwhile, more than half (55%) of marketers believe they lack the capability to use AI and AI maturity (49%).  

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Despite stumbling blocks to more confident AI application by brands, just 9% say they have no plans to use gen AI in their marketing – meaning, the vast majority (91%) do.  

The WFA’s study is based on 54 responses from 48 of the world’s biggest brands with a total marketing investment of $102bn (£77.3bn).  

Inconsistent experiences

Despite growing use, marketing’s adoption of gen AI isn’t consistent across brands.  

Most brands (58%) are in the developing stage, meaning they have a dedicated gen AI strategy, but it doesn’t apply across all business teams. Around a quarter (26%) of brands have a lower level of awareness of AI, using it in a sporadic, occasional fashion.

Just 12% say they have a mature AI adoption, meaning they have a unified strategy across the entire business, while 2% think they are leading on AI with it driving innovation and changing business models.  

To harness the undisputed potential of gen AI, brands must first up get a grip on the legal and compliance implications. 

Stephan Loerke, WFA

Just over a third (36%) of brands have introduced terms prescribing how their partners can use gen AI on their behalf, despite widespread concerns over agencies’ AI use. A lesser 29% have reviewed their media and creative contracts with partners to bring in AI clauses.  

“To harness the undisputed potential of gen AI, brands must first up get a grip on the legal and compliance implications,” says Stephan Loerke, CEO at WFA.  

Almost half (48%) are planning to introduce AI-related terms to their contracts, and 55% are planning to review contracts, motivated by data governance and introducing warranties and indemnities as well as ensuring ownership of work.  

Actors and voiceover artists might have some problems ahead, as while just 9% of brands are reviewing contracts with creative talent to allow gen AI use in relation to their likeness, almost half (46%) plan on doing so.  

The majority (63%) of brands have adopted ‘responsible’ AI principles, while 21% are developing them. Privacy is the most adopted principle (78%), followed by transparency (76%), responsibility (70%) and intellectual property rights (65%).  

These guidelines from brands include guidance on where AI should show up in the work and certain purposes, dos and don’ts for teams and general use cases.  

Brands seem to be protecting themselves in terms of internal representation. Most  (54%) have an AI governance board in place, they say, and 68% of those with an AI board say it specifically addresses the use of gen AI in marketing.  

Where is AI showing up?

Perhaps unsurprisingly, the most common use of AI is in content creation (79%), followed by content ideation (67%) and task automation (54%).  

Meanwhile, 70% of brands are prioritising gen AI for efficiencies – such as time and cost savings – over marketing effectiveness.  

Despite these high percentages, brands are also unsurprisingly cautious about how AI-generated content appears in their marketing assets, with just 40% using AI content in their marketing – mainly to enhance images and products (68%). However, a further 37% plan on introducing AI content into their assets soon.  

Of the 40% of brands that are using AI in their marketing, just 27% are using AI for chatbot purposes and consumer support (27%), suggesting AI is not yet having widespread impact on customer experience.  

In terms of usage, around a third (32%) are using gen AI to copy the likeness of existing places and products.