"Research from NYU Stern and Emory University suggest that AI disclosure can reduce ad effectiveness by up to 31.5%. This raises the question of how much marketers are prepared to lose by answering honestly."
"The European Union's AI transparency provisions hit their compliance deadline in August. New York state requires disclosure of AI-generated humans in marketing from June, pushing the industry to act quickly."
"Gabrielle Robitaille noted that several brands have reached out for guidance on AI transparency, highlighting the urgency as legal teams demand answers ahead of compliance deadlines."
Trust in visual content has diminished, leading to uncertainty in the ad industry regarding AI-generated elements. Research indicates that AI disclosure can decrease ad effectiveness by up to 31.5%. Marketers face pressure to define transparency while considering the financial implications. Regulatory deadlines are approaching, prompting brands to seek guidance on compliance. The industry is slow to adapt, with legal teams now demanding clarity on AI usage in marketing as the compliance deadline nears.
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