Report: India positioned to become global testbed for AI-driven advertising

India’s advertising industry is embracing AI as a transformative force, with significant implications for creativity, consumer engagement, and ethical considerations. A new comprehensive report by the Advertising Standards Council of India (ASCI) Academy reveals how AI is reshaping advertising practices in the country, highlighting India’s unique position as a potential global testbed for AI-driven advertising innovations due to consumer receptiveness.

The big picture: ASCI Academy’s “AdNext: The AI Edition” report examines AI’s growing influence on India’s advertising landscape, emphasizing its potential to enhance efficiency while augmenting human creativity rather than replacing it.

• The research, conducted by design tech firm Parallel HQ with support from Google and Games 24X7, features insights from over 27 leading Indian experts across brands, agencies, legal, academia, regulators, and tech innovators.
• Major corporations including Diageo, HUL, Mondelez, Nestlé, Cipla Health, Coca-Cola, Colgate, Pepsico, P&G, Kenvue, Bajaj Auto, and Dream Sports backed the initiative as part of ASCI Academy’s thought leadership efforts.

Key findings: The report identifies four critical dimensions of AI’s impact on the advertising ecosystem, revealing both opportunities and challenges for the industry.

• AI is perceived as an enhancer of efficiency and personalization that can amplify human creativity rather than replace it, potentially enabling more compelling brand narratives.
• Digital-native industries are integrating AI seamlessly, while legacy sectors are adopting AI primarily through customer-focused applications.
• Indian consumers demonstrate particular openness to AI-driven advertising innovations, positioning the country as a key testing ground for advanced AI strategies.

Industry imperatives: The research emphasizes the necessity of responsible AI frameworks and strong governance for successful implementation.

• There’s a unanimous call across the industry for ethical AI development and deployment standards that prioritize transparency and consumer trust.
• The report highlights generative AI’s potential to democratize advertising capabilities by empowering small and medium enterprises with tools previously available only to larger organizations.

What they’re saying: Industry leaders stress the dual importance of innovation and responsibility in AI adoption.

• “The advent of AI presents an unprecedented opportunity for the advertising industry in India to innovate and connect with consumers in more meaningful ways. However, this power must be wielded responsibly, with a focus on transparency, responsibility, and building lasting trust with consumers,” said Manisha Kapoor, CEO & Secretary General of ASCI.
• Robin Dhanwani, Founder and CEO of Parallel, noted: “AI is reshaping industries rapidly, and advertising is no exception. As a design studio invested in AI’s future, partnering on this research was an exciting opportunity to explore its adoption, impact, and regulatory questions.”

Why this matters: The findings suggest India is positioned to become a global leader in AI-driven advertising innovation while potentially establishing models for responsible implementation that could influence international practices.