Artificial Intelligence & Marketing - A Global Legal Perspective - Americas
Entertainment
Introduction
Introduction
The International Advertising Association (IAA) hosted a webinar exploring the intersection of artificial intelligence (AI) and marketing from a legal standpoint, focusing on the Americas. This session was a continuation of a series that previously addressed the European legal landscape. A panel of experts from the United States, Canada, Mexico, and Brazil discussed various legal, ethical, and practical issues surrounding the use of AI tools in advertising.
Overview of AI
Artificial Intelligence, or AI, encompasses a wide array of technologies. For marketers, the focus primarily lies on generative AI, which creates content by interacting with users through text, audio, or visual means. Companies are leveraging these tools for innovative advertising methods, such as Qatar Airways allowing customers to place their faces in ads.
Intellectual Property (IP) Issues
The use of generative AI brings forth intellectual property challenges. Experts in the U.S. are currently addressing several issues:
Input Concerns: Many lawsuits revolve around whether AI companies infringe copyrights by scraping large amounts of protected content for training their models. Owners of copyrighted works argue that unwarranted use of their material constitutes infringement.
Output Issues: The legality of outputs generated by AI systems also raises questions. The debate focuses on whether these outputs create derivative works that infringe on copyrights of existing content.
Protectability: The current stance of the U.S. Copyright Office maintains that only human-created works are copyrightable, ensuring a complex navigation for those using AI tools.
Rights of Publicity and Deep Fakes
Panelist Val Roa from Brazil highlighted two cases regarding the use of deep fakes. The first involved a Volkswagen ad featuring a deceased singer, where approval from the singer's family was not secured, leading to concerns about ethical practices in advertising. A second example demonstrated an authorized deep fake of Will Smith used for a commercial promoting a payment card.
As technology evolves, regulations need to adapt, especially considering the emergence of fake media in electoral advertising. The challenge intriguing lawmakers is finding a balance between technological advancement and protecting both personal rights and public trust.
Consumer Protection Issues
In the U.S., recent regulatory focus has centered on “dark patterns” where AI can be employed to mislead customers into taking unintended actions. The Federal Trade Commission (FTC) announced an operation targeting deceptive practices involving AI, particularly concerning fake reviews and exaggerated claims.
Consumer Reviews and AI-generated Influencers in Mexico
In Mexico, the absence of specific regulation regarding consumer reviews and AI creates challenges for businesses competing fairly. AI-driven influencers are becoming increasingly common but raise questions about misleading advertising. With no distinct regulations, companies may exploit consumer reviews, leading to manipulation or false representations.
Political Advertising
As the U.S. gears up for a high-stakes election, AI's role in political advertising is under scrutiny. Existing laws protecting political speech complicate the situation, as efforts to regulate misleading advertising containing AI elements are met with First Amendment challenges. Still, states are experimenting with disclosure requirements for AI-generated content.
The Future of AI Regulation
Initial steps toward regulation are emerging in Canada with proposed legislation addressing AI systems. A key focus of this draft legislation is preventing and mitigating biased outputs, where advertising decisions triggered by AI could unintentionally discriminate based on characteristics protected under existing human rights law.
Conclusion
The panellists concluded that while AI presents numerous opportunities for innovation in marketing, it also poses complex legal, ethical, and regulatory challenges that need careful navigation. As the landscape of AI continues to evolve, stakeholders must remain proactive to ensure compliance and protect consumer rights.
Keywords
- Artificial Intelligence
- Marketing
- Intellectual Property
- Consumer Protection
- Rights of Publicity
- Deep Fakes
- Generative AI
- Political Advertising
FAQ
Q1: What are the primary legal concerns associated with generative AI in marketing?
A: Legal concerns primarily center around intellectual property issues related to data input (copyright infringement from scraping protected works) and output (derivative works created by AI).
Q2: How does AI impact consumer protection?
A: AI can facilitate "dark patterns," which are manipulative designs intended to mislead consumers. This has prompted regulatory attention, particularly from the FTC in the U.S.
Q3: Are there specific regulations for AI in advertising in Mexico?
A: No specific regulations exist regarding consumer reviews in Mexico, which allows manipulation of reviews and misleading advertising via AI-driven influencers.
Q4: What is the significance of the upcoming elections in relation to AI and political advertising?
A: The U.S. elections highlight concerns over the potential for AI to spread misinformation through deceptive advertising while navigating First Amendment rights surrounding political speech.
Q5: What steps are being taken in Canada regarding AI regulations?
A: Canada is exploring draft legislation aimed at regulating high-impact AI systems, focusing on bias prevention and accountability efforts in AI-generated outputs.