The battle between bots and creativity - Part 1: Can AI ads be original enough?

A new trend is emerging that could significantly impact the AI gold rush in the creative realm of advertising. Some brands in the West are now incorporating “No AI, No How” clauses in their contracts with ad agencies, effectively banning the use of generative AI in their creative processes. Why such a drastic move? These brands are increasingly concerned that AI could inadvertently blend or recycle creative elements from rival brands/ different sources, jeopardizing the uniqueness and originality of their advertisements. By enforcing these restrictions, brands aim to safeguard their identity, uphold creative integrity, and protect their intellectual property. This shift underscores a growing recognition of the irreplaceable value of human creativity in maintaining the distinctiveness and authenticity of brand communications.

Concerns like this will be seen as prosaic by the diehard votaries of AI. But brands’ worries are not misplaced, and at least some companies have said an emphatic no to the use of AI in creating campaign designs. According to a report, a CEO of an advertising agency revealed that a client’s service agreement explicitly prohibited the use of “any kind of AI” without prior authorization.

Such restrictions can put advertising agencies in a quandary; who will not want to use such handy AI magic toolboxes that come preloaded with creativity-enhancing capabilities?

Leading agencies like WPP have already embraced AI. Its CEO, Mark Read, sees the use of AI for creative work in the advertising industry as “more of an opportunity than a threat to traditional agencies”. Much before AI became a buzz as we know it today, WPP leveraged the power of AI, using Shah Rukh Khan (for Cadbury’s) to create personalized ads for local businesses. Mark Read sees AI as a significant boon rather than a threat to traditional agencies, stressing that WPP is already harnessing AI to enhance its creative output.

How do brands and agencies balance preserving brand identity with embracing AI in advertising? In this two-part series, let’s find out answers to this and much more.

The human touch!

Experts agree that leveraging AI for tasks like data analytics is generally acceptable. However, concerns arise when AI encroaches on creative domains. While AI excels in processing and analyzing vast amounts of data, its use in creative fields raises questions about authenticity, originality, and the human touch that defines true artistic expression.

Absolutely, the “No AI, no how” trend in the West is interesting, quips Vinay Venkatesh, CCO, Asymmetrique. “While Indian brands are aware of AI’s potential, there’s a healthy cautiousness. They understand brand identity is paramount. The key lies in a marriage of human creativity and AI’s power. We can leverage AI for data analysis, personalization, and content optimization, freeing up human minds for strategic thinking and brand storytelling. Think of AI as a super-powered research assistant, not a replacement for creative vision. By clearly defining brand voice and values, we can train AI to amplify them, not dilute them,” Venkatesh adds.

Needless to say, points out Kosal Malladi, Vice President, Madison Loop, AI is becoming intrinsic to the entire creative process. According to him, agencies and brands are both embracing this with cautious optimism.

“There is an obvious fear of misuse of technology. Using too much of AI without declaration will lead to mistrust among consumers. We see a lot of trepidation coming in from brand endorsers/ celebrities. They are adding ‘No AI’ as a clause in their contracts. And even if AI is used, the final output has to be thoroughly verified by the endorser before release,” he adds.

The global advertising landscape is witnessing an interesting tug-of-war between human creativity and AI, points out Kunal Ajmera, Director, Trivoli Digital.

Indeed, Ajmera adds, certain Western companies are enforcing the incorporation of AI into advertising agreements. While this trend hasn’t hit India as hard yet, there’s definitely a cautious optimism, he adds. He reckons that Indian brands are aware of AI’s potential, but they’re also understandably concerned about losing control over their brand identity.

“There’s recognition of AI’s potential to streamline production tasks and gain valuable data insights. However, there’s also a healthy dose of skepticism regarding AI’s impact on brand identity and potential misuse of intellectual property (IP). Trivoli Digital believes AI is a powerful tool, but it cannot replace the human touch. “For example, let’s say we’re working with a real estate developer. We use AI to analyse past customer data and current social media trends. This helps us identify high-potential customer segments with specific needs (e.g., affordable, commercial, luxury). We then craft targeted ad campaigns using brand-consistent visuals and messaging that resonate with each segment. The result? Increased brand awareness and qualified leads, all while maintaining the brand’s image,” Ajmera explains.

“By embracing AI as a tool that amplifies our human expertise, we believe Indian brands can leverage the power of AI advertising without sacrificing their brand identity. The future of advertising in India lies in collaboration. Brands and agencies need to work together to establish best practices for AI integration. By harnessing the power of AI while safeguarding brand identity, Indian advertising can truly reach its full potential on the global stage,” he adds.

The rising trend of “No AI, no how” clauses in contracts between companies and advertising agencies in the West reflects growing concerns about the ethical implications and risks associated with AI adoption in advertising, remarks Raj Swaminathan, Senior Director - New Initiatives and Revenue, Globale Media.

“While this trend may influence Indian brands to some extent, the level of caution regarding AI adoption varies. Indian brands are increasingly cautious about AI adoption, driven by concerns related to data privacy, consumer trust, and ethical AI use. Additionally, India’s regulatory landscape, including data protection laws, emphasizes the need for brands to proceed cautiously with AI integration in advertising. To balance preserving brand identity with embracing AI, brands and agencies must approach AI adoption strategically. Transparency is crucial as brands incorporate AI into advertising strategies, openly communicating with consumers about AI usage to ensure compliance with regulations and ethical standards. While AI enables personalized advertising, brands must avoid intrusiveness and manipulation, prioritizing consumer privacy.”

According to Swaminathan, “Human oversight is essential to safeguard against bias and unintended consequences, and a test-and-learn approach allows gradual AI adoption, adjusting based on performance and feedback. Striking a balance between leveraging AI for effectiveness and upholding privacy and ethics is paramount for brands and agencies navigating the evolving advertising landscape. Through thoughtful and responsible AI adoption, they can preserve brand integrity and consumer trust.”

(Tomorrow: Part 2 of this report will delve into brands’ concerns regarding AI in ads, agencies’ love for AI’s efficiency, and can both sides find common ground?)