Through a qualitative research process, which included a 10-member WFA AI board and detailed responses from intellectual property experts from WFA member companies, six main risks were identified:
- Loss of control over brand intellectual property (IP) and data entry into GenAI tools by advertising agency personnel and other suppliers. Entering data into an AI tool may result in those inputs becoming accessible to the public.
- Violation of intellectual property or confidentiality rights by entering third-party IP or data into a GenAI tool without the necessary permissions. For example, inputting data into GenAI may expose brands to the risk of breaching contracts with third parties.
- Generation of content that unintentionally infringes third-party intellectual property rights. AI-generated images may resemble existing copyrighted or trademarked designs, potentially leading to legal consequences, even if the resemblance is unintentional.
- Lack of ownership or exclusive rights over intellectual property created by GenAI tools. The rights to such materials may not be exclusive, allowing other companies to use them in their own communications.
- Fraudulent AI-generated advertisements falsely representing a brand in paid media. This can damage a brand’s reputation if GenAI is used to create ads that imitate logos and styles, often with the intent to deceive consumers through fake websites.
- Third-party organic content falsely posing as your brand. There have been cases of AI-generated videos “featuring” celebrities making statements about brands. If such content spreads on social media, it can trigger negative reactions that harm the brand’s image.
Possible Steps to Mitigate Risks
The report outlines potential measures that marketing professionals can take to mitigate these risks. These measures typically fall into three broader categories:
- Policies and Processes – Developing internal policies and employee training to ensure an understanding of risks associated with GenAI technologies and their responsible use in marketing.
- Contract and Supplier Management – Including protective clauses in contracts with AI providers, agencies, and partners to minimize risks related to intellectual property.
- Monitoring and Oversight – Implementing tools for tracking and control to identify potential intellectual property or copyright violations when using AI technology.
By adopting this approach, brands can reduce legal and reputational risks and ensure the safe and responsible use of generative AI.
