SHOULD AI-GENERATED ADS AND MARKETING REQUIRE DISCLOSURE?

As AI-usage increasingly grows in scope, marketing campaigns have become increasingly infiltrated with AI-generated content as well. There are three main, distinct ways AI is used for marketing at the moment. The first is AI-generated ads and images, which are fully AI-generated visual ads and product photos. Another is AI-generated influencers, who are essentially deep-fake people that advertise and endorse a product. Finally, there’s AI-personalized targeting, where AI is used to decide who sees an ad and how it is worded based on the characteristics of the individual viewing the ad. 

Let’s start by reviewing the arguments FOR requiring disclosure when AI is used. The first is the most obvious: deception by omission. When a fake influencer endorsement is created, consumers believe they’re seeing a real testimonial; since consumers don’t know that neither the person nor the testimonial is real, which is arguably no different than faking a quote. A landmark example in the present day is the FTC, or the Federal Trade Commission, already taking action today on AI-generated reviews; indeed, in 2024 the FTC outright banned AI-generated reviews. This type of marketing can actually lead to an erosion of trust altogether; as AI-generated testimonials become more popular, consumers may feel significantly more distrustful to all testimonials out of the belief that those testimonials are also AI, even when they may not be. There’s also the argument that AI-generated advertisements target vulnerable populations. For example, certain groups of people—such as elderly individuals—are less exposed to AI and thus have a weaker ability to tell real ads from AI. As AI-generated advertisements grow, groups that lack high exposure to technology and AI are increasingly and disproportionately taken advantage of, leading to societal inequality. 

Now, let’s move to the case AGAINST requiring disclosure. First, there’s the argument that requiring disclosure of AI can lead to a slippery slope. Nearly all modern advertising uses digital tools such as Photoshop, CGI, stock photography, scripted actors reading other words, and more. If AI testimonials require disclosure, would there also need to be disclosure when an actor is acting in a commercial, even if the script is human written? What about usage of other technology that enhances or beautifies a product? Would those details need to be disclosed as well. Going off of this argument, there’s also the augment that not much of advertising is ever “real”. Ads have always used actors, scripts, and exaggerated descriptions. Audiences already perceive that ads that aren’t real, as they are acted, so why is it unethical for the audience to watch AI-generated ads as well? There’s also the practicality of the situation that comes into play. Nearly every tool marketers use already has AI embedded into it, including Photoshop and Canva. If disclosure is required every time AI touches content, nearly all content would need a label, making the disclosure essentially useless. Additionally, content can be AI-assisted—an AI-edited background, headline, etc—or content can be fully fabricated by AI. Practically, where would we draw the line? How much assistance is fabrication? Finally, there’s the argument of leveling the playing field for small businesses. Small businesses are at a huge disadvantage against larger corporations when it comes to resources, money, and more. AI has become an important tool for allowing these businesses to come up with marketing endeavors at a low cost and increase competition in the market. If requiring AI-disclosure could harm small businesses, is it truly ethical? 

As I leave you with both of those arguments to ponder on, I ask you: Is the ethical problem really about AI use in general, or is it about whether the ad fabricates something that implies real human experience? If disclosure became something standard like #ad, would a small AI-generated label really change consumer reactions, or will it become as ignored as other labels?