Brands Are Cracking Down on How Agencies Use AI

As AI continues to revolutionize the marketing and advertising landscape, brands are becoming increasingly vigilant about how their agency partners utilize these powerful tools. According to AdAge, there is a growing trend of brands demanding stronger AI safeguards in agency contracts, and in some cases, they are outright restricting AI usage without prior approval.

Stricter AI Safeguards in Agency Contracts

Brands are concerned about the potential risks associated with AI deployment by their agency partners. This includes fears related to data misuse, AI-generated content, and the impact on creative professionals. For instance, a high-profile incident involving Under Armour faced criticism for using generative AI to create new visuals and voiceovers of boxer Anthony Joshua without shooting new footage.

One ad agency CEO highlighted this growing concern: “Recently, we won three new pieces of business, and in the master service agreement, it says, ‘You’re not allowed to use AI of any kind, without prior authorization.’” This shift indicates a broader industry movement towards cautious AI adoption, ensuring that brands maintain control over how AI is integrated into their marketing strategies.

Navigating the New Normal: Legal and Operational Adjustments

To navigate this evolving landscape, agencies must make significant legal and operational adjustments. Marketing AI Institute founder and CEO Paul Roetzer emphasized the importance of involving legal teams early in the process: “First and foremost, you have to get the attorneys in the room.”

Contracts between clients and agencies need to be revisited and redefined to account for AI usage. Master service agreements must clearly outline the permissible uses of AI, ensuring compliance with data security, confidentiality, and non-disclosure agreements (NDAs). Agencies must also address the following critical legal concerns:

• Ownership of AI-generated content: In the US, copyright cannot currently be enforced on AI-generated content. This legal ambiguity poses challenges for both agencies and their clients.
• Data security and confidentiality: Ensuring that AI tools honor data security protocols and confidentiality agreements is paramount.
• Liability: Determining liability if AI tools unintentionally or intentionally violate someone else's rights is crucial for risk management.

Proactive Strategies for Agencies

Agencies need to adopt proactive strategies to manage these concerns effectively. Here are several steps agencies can take to ensure responsible AI usage while maintaining client trust:

1. Establish Clear AI Policies

Agencies should develop comprehensive AI policies that define the scope and limitations of AI usage. These policies should be communicated clearly to all stakeholders, including clients, freelancers, and employees. Establishing clear guidelines helps prevent misuse and ensures compliance with contractual obligations.

2. Engage Legal Counsel

Legal counsel should be engaged early in the process to help draft and review contracts that involve AI usage. By addressing legal concerns upfront, agencies can avoid potential conflicts and ensure that all parties understand their rights and responsibilities.

3. Focus on Transparency

Transparency is key to building trust with clients. Agencies should provide detailed explanations of how AI tools are used, the data they rely on, and the measures in place to protect data security and privacy. Regular updates on AI initiatives and their impact can further strengthen client relationships.

4. Invest in AI Education and Training

Agencies should invest in AI education and training for their teams. This includes understanding the legal implications of AI, best practices for AI deployment, and staying updated on the latest developments in AI technology. By fostering a culture of continuous learning, agencies can better navigate the complexities of AI integration.

5. Prioritize Ethical AI Use

Ethical considerations should be at the forefront of AI implementation. Agencies must ensure that AI tools are used responsibly, avoiding practices that could harm individuals or violate ethical standards. Developing ethical guidelines for AI usage can help agencies make informed decisions that align with their values and those of their clients.

Addressing Creative Concerns

One of the major concerns brands have is the impact of AI on creative work. There is a fear that AI-generated content may lack the authenticity and originality that human creativity brings. Agencies must address these concerns by demonstrating how AI can enhance, rather than replace, human creativity.

Human-AI Collaboration

Promoting human-AI collaboration can showcase the value of combining AI's efficiency with human creativity. AI can handle repetitive tasks, analyze large datasets, and generate insights, allowing creative professionals to focus on more strategic and innovative aspects of their work.

Showcasing Success Stories

Agencies can build client confidence by showcasing successful AI implementations that have led to positive outcomes. Case studies and testimonials can provide tangible examples of how AI has been used responsibly and effectively to achieve marketing goals.

The Future of AI in Marketing

As the marketing industry continues to evolve, AI will play an increasingly significant role. However, the key to successful AI integration lies in balancing innovation with responsibility. Agencies that can navigate the legal, ethical, and operational challenges of AI will be better positioned to deliver value to their clients.

By proactively addressing the concerns associated with AI usage, agencies can build stronger relationships with brands, ensuring that AI is used to enhance creativity, drive efficiency, and achieve marketing objectives.

If you're looking to navigate the complexities of AI in marketing, consider hiring an AI consultant from Hire a Writer. Our experts can help you develop responsible AI strategies, ensuring your marketing initiatives are both innovative and compliant. Contact us today to get started!