BRANDS ADD AI RESTRICTIONS TO AGENCY CONTRACTS—BEHIND THE GROWING TREND

Advertisers are placing more restrictions on their partners when it comes to AI in their work

Brands are demanding stronger AI safeguards in their contracts with ad agencies, setting up tension between marketing firms, which are racing to adopt generative AI, and clients, who are worried about all of the ways the technology could steer them wrong.

Careful to a fault

Brands could be too cautious, though, by telling agencies they need clearance for every usage of AI. There is a distinction between generative AI tools for creating ads and machine learning applications, which are widely used to analyze data, target ads and measure campaigns, according to Ashwini Karandikar, executive VP, media, tech and data, at 4As, the ad agency trade group.

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