The utilization of artificial intelligence (AI) in advertising campaigns is becoming more commonplace among brand owners and their respective marketing agencies. However, recent updates to the Association of National Advertisers’ master media buying services template agreement are signalling that brand owners should be mindful of the risks involved. With AI’s growing involvement in ad content creation and media buying, it is paramount for brand owners to understand how their contracted agencies are leveraging this technology.
This issue was recently tackled in a detailed write-up by Kyle-Beth Hilfer and John Miranda, esteemed professionals at Cowan Liebowitz, who provide insights into AI usage in the advertising landscape and the accompanying risks.
A key point to note from their analysis is that AI’s application to ad content generation isn’t without its challenges. While it offers intriguing possibilities for brand storytelling and consumer engagement, potential legal pitfalls exist around adherence to privacy regulations, intellectual property protection, and contractual obligations. Agencies employing AI tools should, therefore, equip themselves with the necessary savvy to navigate this high-tech terrain to mitigate potential risks. They argue that brand owners should ensure that their agencies’ AI activities are within the confines of the updated template agreement as a control measure.
As AI continues to reshape media buying and advertising strategies, more transparency and caution should be exercised by all the involved parties. To stay updated on developments in this area, legal teams, brand owners, and advertising agencies are encouraged to review the opinions of Hilfer and Miranda at Law360.