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Generative artificial intelligence (AI) has emerged as the latest shiny new technology in the advertising industry, with at least 71% of agencies leveraging chatbots and language modeling for internal processes. However, clients have not shown the same level of interest in adopting AI solutions. The lack of client demand can be attributed to the black box problem of AI, where humans do not fully understand how AI systems compute and make decisions. This lack of familiarity with the technical nuances of AI is a barrier for advertisers.

Despite the hesitation, AI is receiving significant attention. It was the buzzword at this years Cannes Lions Festival of Creativity, and AI-enabled ad spend is projected to reach $370 billion. However, there is no consensus among industry executives regarding the exact role AI will play in the future of advertising.

Artificial intelligence is not a new concept, with its origins dating back to the 1950s. Agencies like Omnicom Group and Deloitte Digital have been incorporating AI into their business applications for years. The recent introduction of generative AI models like OpenAIs ChatGPT has sparked an arms race in the field, generating interest from advertisers.

While agencies are pitching AI solutions to clients, there is a level of trepidation on the client side. Clients are more interested in learning about AI rather than implementing it directly, requiring agencies to provide educational information and guidance.

The potential of AI is recognized, but there are risks and uncertainties associated with it. Regulations, data privacy, content ownership, and the need for human oversight and intervention are factors that agencies need to consider. AI has not yet proven itself to be the ultimate advertising tool, and agencies still prioritize human involvement.

Different agencies are exploring various applications of AI. Deloitte Digital is testing client-facing technologies like digital twinning, while others use AI for A/B testing, copy editing, visual asset generation, and data processing.

Transparency and education are key factors in helping clients understand AI. Agency executives emphasize the importance of being transparent about the data used to train AI models and how AI-powered tools are utilized. The protection of data and understanding the source material are also critical.

While clients are no longer as apprehensive about AI as they were in the past, there is still a level of complexity that needs to be addressed. However, clients who are willing to embrace AI may find comfort in technological advancements and the potential for efficient results.

Overall, generative AI has captivated advertisers, but clients remain cautious due to a lack of understanding and familiarity with the technology.

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Generative Artificial Intelligence Captivates Advertisers, But Clients ... - Fagen wasanni