63% of Brands Now Embrace Gen AI in Marketing, Research Shows

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.