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Brands Forbid Advertising Agencies From Using AI

Apr 02, 2024 - 80.lv
A recent report reveals that many companies are becoming wary of the use of generative AI in advertising, leading to the inclusion of a "no AI, no how" clause in contracts with advertising agencies. These businesses fear that AI could introduce another brand's creative imprint into their output and misuse their intellectual property for AI training. This contrasts with ad agencies' growing interest in AI technologies for production tasks. The report also highlights that these concerns are not new, referencing last year's revisions to the Association of National Advertisers' guidance advising businesses to include AI and consent clauses in their agreements with agencies.

In related news, several AI developers have recently faced controversy. OpenAI, the creator of ChatGPT and DALL-E, is being sued by co-founder Elon Musk for allegedly violating their founding agreement to develop AI for humanity's betterment, not profit. OpenAI also faced criticism over uncertainty about how its latest text-to-video AI Sora was trained. Additionally, Midjourney and Stability AI are in a dispute over alleged data theft, leading to the banning of Stable Diffusion developers from using Midjourney's services.

Key takeaways:

  • More companies are expressing concerns about the integration of generative AI into advertising, leading them to include a 'no AI, no how' clause in contracts with advertising agencies.
  • Businesses are demanding enhanced AI safeguards within their contracts, fearing that AI could taint the final output with another brand's creative imprint and misuse their intellectual property.
  • Ad agencies are increasingly embracing AI-based technologies for production tasks, contrasting with the concerns of their clients.
  • AI developers, including OpenAI, Midjourney and Stability AI, are facing controversies and legal issues, ranging from violation of founding agreements to accusations of data theft.
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