Howes Percival
AI in advertising can create buzz - and commercial risk
Generative AI is moving rapidly from creative experiment to everyday marketing tool. It can help brands produce content faster, personalise campaigns at scale and reduce production costs. But it is also creating a new category of commercial risk, particularly where adver- tising uses recognisable faces, voices or styles without proper permission. For a business audience, that is the real issue. T is
is not just a question of legal theory. It is about brand trust, consumer confi dence, reputational damage and the cost of getting a campaign wrong. Used well, AI can make advertising more eff ective. Used badly, it can trigger complaints, takedowns and unwanted headlines. Whilst not related to the use of AI, in 2024 the
Advertising Standards Authority banned paid-for ads by Simmer after edited footage made it look as though Sara Davies and Deborah Meaden from Dragons’ Den were endorsing its ready meals. T e regulator found the ads
Stephen Ruse Director
Commercial, Technology & IP Howes Percival
misleading because consumers were likely to think the endorsement was genuine. It was a clear reminder that short-term attention can quickly become a compliance and reputation problem. T ere are also examples from outside advertising that
still matter to marketers. T e viral AI song Heart On My Sleeve, which mimicked the voices of Drake and The Weeknd, was pulled from major platforms after attracting huge attention. More recently, OpenAI paused one of its chatbot voices after complaints that it sounded too similar to Scarlett Johansson. Both stories underline the same commercial point: voice and likeness now carry real economic value, and audiences are increasingly alert to how they are used.
Why this matters commercially T e commercial reality is straightforward. If an advert suggests a celebrity, creator or public fi gure supports a product when they do not, the fallout can be expensive. A business may face regulatory scrutiny, platform take- downs, wasted media spend, strained talent relationships and damage to customer trust. Even where a claim does not end up in court, the
disruption alone can outweigh any savings gained from using AI.
ALL THINGS BUSINESS | 18
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