The rise of generative AI in marketing: The World Federation of Advertisers (WFA) has released new research highlighting the increasing adoption and concerns surrounding generative AI in the marketing industry.
- According to the study, 63% of brands are already using generative AI in their marketing efforts, up from 45% last year.
- The research is based on responses from 54 representatives of 48 of the world’s largest brands, with a combined marketing investment of $102 billion (£77.3 billion).
Widespread concerns and adoption challenges: Despite the growing use of generative AI, brands face several hurdles in fully embracing the technology.
- 80% of brands express concerns about how their creative and media agency partners are using generative AI.
- Legal concerns (66%), ethical worries (51%), and reputational risks (49%) are the primary factors holding back greater AI adoption.
- More than half (55%) of marketers believe they lack the capability to use AI effectively, while 49% cite a lack of AI maturity as an obstacle.
Inconsistent implementation across brands: The adoption of generative AI in marketing varies significantly among brands, with most still in the early stages of implementation.
- 58% of brands are in the developing stage, with a dedicated gen AI strategy that doesn’t apply across all business teams.
- 26% of brands have a lower level of awareness, using AI sporadically or occasionally.
- Only 12% claim to have mature AI adoption with a unified strategy across the entire business.
- A mere 2% consider themselves leaders in AI, with the technology driving innovation and changing business models.
Contractual and governance considerations: Brands are taking steps to address the legal and ethical implications of generative AI use in their marketing efforts.
- 36% of brands have introduced terms prescribing how their partners can use gen AI on their behalf.
- 29% have reviewed their media and creative contracts with partners to include AI clauses.
- 48% plan to introduce AI-related terms to their contracts, while 55% intend to review contracts to address data governance, warranties, indemnities, and ownership of work.
- 63% of brands have adopted ‘responsible’ AI principles, with privacy (78%), transparency (76%), and responsibility (70%) being the most common.
AI applications in marketing: Generative AI is being utilized in various aspects of marketing, with content creation leading the way.
- Content creation (79%), content ideation (67%), and task automation (54%) are the most common uses of AI in marketing.
- 70% of brands prioritize gen AI for efficiencies such as time and cost savings over marketing effectiveness.
- 40% of brands are using AI-generated content in their marketing assets, primarily to enhance images and products (68%).
- Only 27% are using AI for chatbot purposes and consumer support, indicating limited impact on customer experience thus far.
Future outlook and implications: As generative AI continues to evolve, brands must navigate the balance between innovation and responsible use.
- The vast majority (91%) of brands plan to use generative AI in their marketing in the future, with only 9% having no such plans.
- Stephan Loerke, CEO at WFA, emphasizes the need for brands to address legal and compliance implications to harness the potential of generative AI.
- As the technology advances, brands will likely need to adapt their strategies, governance structures, and contractual agreements to fully leverage the benefits of generative AI while mitigating associated risks.
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