How brands are tackling generative AI’s challenges and opportunities

How brands are tackling generative AI’s challenges and opportunities

4 minute read

WFA research into the usage of generative AI earlier this month revealed that legal and ethical risks and lack of capabilities remain major roadblocks to more widespread adoption. Eighty percent of brands cited concerns about agency use of GenAI.

Article details

  • Author:WFA

    WFA

Opinions
2 October 2024
GenAI study 2024
From left to right: Duncan Wagner (Diageo), Gael de Talhouet (Essity), Alyssa Fenoglio (Teva Pharmaceuticals) and Jérôme Amouyal (AXA).

Despite these concerns, however, the use of the technology continues to rise, with rates of 63% recorded in 2024, well ahead of the 45% recorded by WFA research last year.

We asked four WFA members for their perspectives on the survey results and some of the challenges and opportunities they see with regards to the use of generative AI for marketing.

“The results of the WFA research seem to indicate that many brands are prioritising AI adoption to drive marketing efficiencies over marketing effectiveness. At AXA, we don’t believe on the need to choose one over another. If adopted in a legal and ethical way, AI can bring significant value to a brand’s entire marketing operations. For example, we believe AI offers a significant opportunity to localise and personalise content, reducing low-value tasks while preserving the value-added contributions of human content creators. Generally speaking, ensuring there is always a human in the loop, and even more, a human leading the loop, is crucial to successfully adopt AI according to our guiding principles.” - Jérôme Amouyal, Marketing Effectiveness and Media Global Director, AXA

“The WFA survey on gen AI has been valuable for us at Diageo. It arrived as we are establishing our AI governance model, which prioritizes existing use cases, manages partner/application risks, and systematizes innovation for new ideas. It inspired us by showing how peers in other industries use generative AI and sparked ideas on how we could leverage it at Diageo. It also reassured us about common challenges in deploying this technology, such as issues with agencies and contracts. It's a comprehensive overview, and I hope it becomes an annual publication.” - Duncan Wagner, Head of Digital Deployment, Diageo

“There’s no doubt that AI is changing the way we conduct our marketing. But the results of the WFA research demonstrate that legal and ethical challenges continue to be blockers to gen AI adoption. It is our responsibility as brand owners to craft our own AI future, and it’s best to go structured and steady than rushed and loose. That’s why at Essity we are setting clear expectations and objectives for gen AI rooted in standards of responsibility and fairness, so that we can control the outcomes rather than run after a fast, self-driving mean machine. And the next step will be ensuring as an industry of brand owners that these standards are translated to our marketing, creative and media partners.” - Gael de Talhouet, Vice President Brand Building, Essity

“The WFA survey highlights the importance, urgency, and caution required for upskilling and building Gen AI capabilities responsibly—a compelling paradox that marketing leaders are balancing across industries. At Teva Pharmaceuticals, we've developed risk mitigation guidelines and started offering practical capability-building sessions for our commercial teams. While still new on our gen AI journey, this approach empowers our people to confidently learn and adopt gen AI tools while navigating the complexities of the highly regulated pharmaceutical industry.” - Alyssa Fenoglio, Vice President Global Head of Digital Commercial, Teva Pharmaceuticals

Earlier this year WFA launched the AI Community, designed to support brands leverage the opportunities of generative AI while mitigating legal, ethical and reputational risk. The forum now brings together 650 marketing, policy and legal professionals spanning 119 different brands.

Over the past few months, WFA has developed guidance on gen AI contract best practice with agencies, published Responsible AI principles with harmonised definitions, and put together a monthly AI roundup to help marketers keep on top of developments impacting their use of AI.

We’ve also explored how agencies are using generative AI, and whether prioritising gen AI for marketing efficiencies, comes at a cost to longer-term brand building.

Over the coming months, we’ll be publishing guidance on how to mitigate IP risks, and deep diving into consumer expectations around brand use of gen AI, as marketers look to ensure their practices align with the evolving expectations of society.

To get involved in the Community, reach out to g.robitaille@wfanet.org.

Article details

  • Author:WFA

    WFA

Opinions
2 October 2024