Big companies use AI-generated ads because they’re cheap

Large advertising agencies and multinational corporations are increasingly turning to generative AI to cut marketing costs and create more ads. WPP clients Nestlé and Mondelez have used OpenAI’s DALL-E 2 to make ads, while Unilever has developed its own generative AI advertising tools. However, the use of AI in ad creation raises questions about the need for disclosure and whether AI-generated ads can receive copyright protections.The use of AI in marketing has led to calls for standard policies on tagging AI-generated content. Big AI companies have agreed to develop watermarking technology to label AI-generated content. Meanwhile, online brands are also experimenting with generative AI, although concerns remain over copyright protections and security risks.

Key takeaways

Large advertising agencies and multinational corporations are using generative AI to cut marketing costs and create more ads. Examples include WPP's clients Nestlé and Mondelez, and Unilever.
There are concerns about whether consumers should be informed if an ad is AI-generated. Big AI companies have agreed to develop watermarking technology to label AI-generated content.
Generative AI has been adopted early in marketing and advertising, with tools like Jasper being used to write ad copy. Jasper raised $125 million in Series A funding in 2022.
Despite the benefits, companies using generative AI for advertising have concerns over copyright protections and security risks associated with AI.

Big companies use AI-generated ads because they’re cheap

Key takeaways

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