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Home » Brands demand stronger AI safeguards in contracts with ad agencies, states Ad Age

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Brands demand stronger AI safeguards in contracts with ad agencies, states Ad Age

by | Apr 1, 2024

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, reports Ad Age.

The Ad Age post adds: “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,’” said one independent ad agency CEO, who spoke with Ad Age on condition of anonymity to protect the identities of clients. “So, that even means they don’t want us to use AI to help work on concepts, not just anything that goes out the door.”

The agency is not alone, continues Ad Age, “as these strict AI terms are becoming more common, according to ad industry leaders. Last year, the Association of National Advertisers updated its guidance to brands, advising them to include clauses about AI and consent in their agency deals. Now, those restrictions are being applied.

“There is this juxtaposition of agencies ramping up their AI knowledge and usage, and then clients clamping it down,” the agency CEO said.

More here.

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