Brands Ask Ad Agencies Not to Use AI in Campaigns

Brands are imposing strict regulations on the use of AI by advertising agencies, as per media reports. This development, prompted by concerns over potential risks, has led to tension between agencies eager to leverage AI and cautious clients. Some ad agencies have encountered clauses in contracts forbidding AI use without prior approval, even in the conceptual stages of work.

An ad agency CEO reportedly told Ad Age that a client’s service agreement forbade the use of “AI of any kind, without prior authorization.”

What prompted the situation?

This movement has gained momentum, influenced by the Association of National Advertisers' (ANA) guidelines advising brands to address AI usage in contracts.

Despite the growing adoption of AI tools like ChatGPT and DALL-E 2 in advertising, incidents such as Google's chatbot mishap and legal disputes like The New York Times' lawsuit against OpenAI have raised concerns about AI implementation. Nonetheless, AI remains essential in tasks like campaign analysis and creative ideation, leading brands to develop proprietary AI models with agencies.

Concerns over protecting creative integrity and intellectual property drive brands' insistence on AI restrictions. Agencies are now assuring clients of closed systems to safeguard data and assets from misuse.

While brands recognize the benefits of AI, they are cautious and embed AI clauses in contracts to mitigate risks. However, some experts advocate for nuanced guidelines distinguishing between generative AI for creativity and machine learning for data analysis.

Some brands have banned AI use entirely in campaign creation, impacting agency reviews where AI capabilities are now a key assessment factor.