AI is shaping how adverts are produced, reviewed and delivered. Copy, visuals and audience targeting can now be generated in seconds. These tools can help teams work more efficiently and add a new layer of creativity, yet they also introduce new types of compliance and reputational risk.
Deliberate misuse vs an innocent misleading
Recent figures from Reuters suggest that Meta expected around ten per cent of its 2024 advertising revenue to originate from promotions linked to scams or prohibited items, with billions of misleading adverts appearing daily. This highlights the scale of the issue: deliberate misuse is one part of the picture, but well-intentioned advertisers may also fall foul of rules if AI creates material that breaches regulatory standards.
The consequences of misusing AI
Errors involving AI can become a nightmare for brands. The viral “Glasgow Willy Wonka Experience” disaster in 2024 illustrated how AI-made visuals can set an unrealistic expectation of what audiences will receive. The gulf between the promotional material and the physical event sparked outrage, led to intervention by authorities and forced the organisers to shut down within hours.
Beyond accuracy problems, personalised adverts can raise legal concerns when content reaches audiences it should not. Examples include adverts for alcohol or gambling appearing to under-18s, or sensitive material being delivered to individuals who have opted out or may be vulnerable.
Intellectual property and data protection issues can also arise, especially where material is created using external models or sourced from datasets containing protected works.
Five tactics to boost compliance in AI-driven advertising
When using AI in advertising, it is critical for brands to understand the risks and implications of misuse. They can then take practical steps to ensure they remain compliant and responsible.
1. Embed AI into contractual arrangements
Agreements with agencies, freelancers and technology partners should set out how AI may be used, who checks outputs, and where responsibility lies if errors occur. Clear drafting reduces uncertainty if and when problems emerge.
2. Focus on thorough content reviews
Advertisers should confirm that AI-made material does not create a false impression. If AI changes the appearance, scale or functioning of a product, a short explanation may be sensible so viewers understand how the content was produced.
3. Approach AI influencers carefully
Where digital characters appear in adverts, they should be identified clearly if it is not obvious they are synthetic. If a character appears to “test” a product, consider whether this is possible. If not, a different format may be more appropriate.
4. Give extra scrutiny to regulated categories
Campaigns involving age restrictions or sensitive products should undergo detailed legal review. Targeting tools can produce unintended audience groups, so close oversight is essential to avoid inappropriate or harmful placement.
5. To disclose or not to disclose
Advertising law requires brands to avoid misleading consumers and to provide information that could influence decisions. The Competition and Markets Authority (CMA) has indicated that, where there is a realistic prospect of confusion, people should be told when they are dealing with AI rather than a human. This does not necessarily mean prominent disclaimers, but advertisers should avoid presenting synthetic figures as real individuals.
A similar point applies to AI-generated imagery. If it is not obvious that the content is artificial and this could influence the viewer’s understanding of the product, disclosure may be advisable.
Regulation and future direction
The Advertising Standards Authority (ASA) uses active AI monitoring tools to identify adverts that may breach its rules. Content linked to priority issues is reviewed by specialists, and problematic cases can lead to investigation or rulings.
The UK’s position on AI disclosure remains developing. The CMA focuses on consumer clarity, while the ASA is chiefly concerned with whether material misleads. Over time, enforcement activity and further guidance should create a more consistent approach. Discussions about broader AI legislation appear from time to time, though there are no firm proposals at present.
Key points for advertisers
AI can help teams work more effectively, but it also increases the need for clear internal processes. Brands can reduce risk by:
- Embedding AI responsibilities in contracts
- Reviewing AI-made content with legal accuracy in mind
- Being careful with digital characters and synthetic personalities
- Applying enhanced checks to regulated categories
- Staying informed about guidance from the CMA and ASA
These steps support responsible practice and help ensure that creativity and compliance work together.
