The growing use of generative artificial intelligence (AI) in advertising has sparked alarm among content creators, lawmakers, and regulators who are grappling with a range of issues including transparency, intellectual property, and data privacy. As generative AI tools become more accessible to consumers, the debate intensifies, with stakeholders raising concerns about potential violations of rights and ethical boundaries.
Developers of AI technology are currently facing class action lawsuits alleging infringements on copyright, publicity, and privacy rights. These lawsuits often claim that companies behind AI models are misusing personal data and violating intellectual property laws during the training and deployment of their systems.
Both the Federal Trade Commission (FTC) and Congress have taken notice. In a series of summits, they have outlined the potential risks and rewards of AI, emphasizing the need for regulatory scrutiny. As we move into 2024, more investigations and lawsuits are expected to target suspected AI misuse, as regulators, plaintiffs, and lawmakers continue to evaluate the impact of these technologies on both consumers and rights holders.
In response to these developments, brands are urged to implement or update their AI use policies, ensuring they align with advertorial guidelines and other relevant standards. Companies should ensure their policies align with evolving legal standards and corporate goals, while also mitigating risk. Training for in-house teams and external vendors on these AI policies is crucial to ensure compliance and proper usage. Furthermore, brands are advised to review contracts with agencies, vendors, and influencers to include protective clauses related to generative AI.
As generative AI continues to reshape the advertising landscape, the balancing act between innovation and regulation will be pivotal in defining its future role.
