Hogan Lovells 2024-2025 AI Trends Guide - Flipbook - Page 14
Developing a global approach to AI
governance
As artificial intelligence becomes more integrated into the market, its use in
advertising and marketing—and related potential—has become undeniable.
AI is influencing the ways consumers interact with brands and becoming
increasingly integrated into the purchasing process. In traditional consumer
retail, there has been an explosion of AI-enabled “try-on” features,
personalized product consultations and chat bot influencers, as well as a
surge of increasingly tailored and specifically targeted advertising based
on a consumer’s behavior. And in the B2B context, companies race to find
ways to make their products and services more efficient (and competitive)
through AI enhancements and integrations, which they then use to market
those offerings.
But AI-related advertising is not without legal risk. With such ubiquitous
presence comes increased scrutiny – from governmental regulators,
competitors, consumer advocacy groups, and more. Consumer protection
agencies have noted the potential discriminatory impacts of advertising
practices based on biased algorithms, and the possible associated liabilities.
There has been an uptick in activity from the United States Federal Trade
Commission (FTC) expressing concern over claims relating to AI, including
how it was trained, what benefits it provides, whether it functions as advertised,
and whether technology is properly characterized as “AI.” Those concerns go
hand-in-hand with potential Lanham Act false advertising claims, particularly
to the extent the AI-related representations are deemed material. And AIgenerated advertising introduces a host of additional considerations, including
with respect to accuracy, substantiation and the potential use of deepfakes.
As AI advertising continues to take root, companies can expect increased
regulation, litigation and policy in this space. Advertisers are well-advised
to stay abreast of these developments, and to apply the principles of
transparency, accuracy, human oversight and accountability which guide
the use of AI more broadly.
Additional
resources
Spotlight
AI Ads & Deepfake Celebs & Misleading
Claims, Oh My! – United States
Authors
Anna Kurian Shaw
Partner
Washington, D.C.
Lauren Cury
Counsel
Washington, D.C.
Brendan Quinn
Senior Associate
Washington, D.C.
