Advertising and AI: With the first anniversary of ChatGPT, it is important to look at how AI can coexist with stakeholders in current landscape – The Financial Express
The Financial Express
By Rohit Kumar Singh
Generative AI took a huge leap when ChatGPT was launched a year back. Such systems continue to transform various spheres of our workspace at a rapid pace. With its use, advertising has increasingly become personalised and engaging. While these advancements enhance the advertising landscape, they also give rise to new challenges and concerns. Let us look at these issues from the perspectives of the industry, the regulator, and, most importantly, the consumer.
From the industry’s standpoint, the adoption of generative AI represents a game-changing opportunity. It enables the creation of highly targeted and compelling advertisements, which can lead to better engagement and conversion rates. The ability to generate content in real-time that is personalised to individual consumers has the potential to revolutionise advertising campaigns. Generative AI models can be used to create realistic, immersive, and engaging content such as images, text, and videos with minimal human input.
However, with great power comes great responsibility. The industry must be acutely aware of the ethical considerations surrounding generative AI in advertising. There is a fine line between creating personalised content and invading consumers’ privacy. It must ensure transparency in data collection and usage, seek informed consent from consumers, and safeguard their personal information.
Furthermore, the industry should self-regulate to prevent the misuse of generative AI for deceptive or harmful purposes. The use of deepfakes or misleading content undermines trust and can have serious repercussions for both consumers and the industry’s reputation. Therefore, responsible guidelines and standards should be established within the industry to maintain ethical advertising practices.
The regulator must endeavour to strike a balance between innovation and consumer protection. Generative AI poses several challenges for regulators, primarily due to its dynamic and rapidly evolving nature. Traditional advertising regulations may not suffice in addressing the unique issues associated with AI-generated content. To effectively regulate generative AI in advertisements, a comprehensive approach is required. This includes:
Clear guidelines: Developing specific guidelines that outline what is permissible and what is not in AI-generated advertising is the need of the hour. These guidelines should focus on issues like transparency, data privacy, and deepfakes.
Algorithm audits: Regulators should consider implementing audits of AI algorithms used in advertising to ensure they do not discriminate, engage in unethical practices, or infringe upon consumer rights. Transparency in algorithmic decision-making is crucial.
Consumer education: Empowering consumers with knowledge about generative AI and its implications is a must. This should include providing information on how to recognise deceptive advertising and report it.
Collaboration with industry: Collaborating with the advertising industry to establish a code of ethics and best practices for the responsible use of generative AI in advertisements would be conducive.
Legal framework: Updating existing laws or creating new legislation to address emerging challenges in advertising, especially in the context of AI and data privacy is also something that should be paid attention to.
Consumers are generally supportive of new technologies that can improve their lives. However, they are also worried that generative AI could be used to create ads that are manipulative or discriminatory. t may also create deepfakes or other forms of deceptive synthetic media. Their experiences and concerns must be prioritised.
Privacy concerns: Consumers worry about the collection and use of their personal data to create personalised ads. These should be addressed.
Deceptive content: Consumers should be protected from misleading or harmful AI-generated content. Clear labelling of AI-generated ads and penalties for deceptive practices are essential.
Transparency: Consumers should know when they are interacting with AI-generated content and should have access to information about the algorithms that influence the ads they see.
Redressal mechanisms: There should be straightforward mechanisms for consumers to report deceptive or invasive AI-generated advertisements, with swift action taken against violators.
Digital literacy: Investing in consumer education programs to enhance digital literacy is crucial. Educated consumers are better equipped to navigate the digital landscape and make informed choices.
The rise of generative AI in advertising is an unstoppable tide. It brings with it a host of advantages for the industry, but it also raises valid concerns from both regulators and consumers. For a balanced and prosperous ecosystem, all three stakeholders must come together. The industry must recognise its responsibility and be self-regulated, regulators must be agile and forward-thinking, and consumers should remain informed and vigilant. In the dance of progress, it is essential to ensure that the tunes of ethics, transparency, and protection do not get drowned out by the beats of innovation.
The writer is secretary, consumer affairs, Government of India
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