Written by Shenaly Amin, Head of Marketing at Rightlander, who are one of the founding members of the APMA and a leader in affiliate marketing compliance.
As AI continuously revolutionises industries, digital marketing has been at the heart of this evolution. AI-generated content is powerful, and businesses use it to craft personalised, scalable, and engaging campaigns. From creating social media posts to writing blog articles or product descriptions, AI is changing the face of marketing content. But with great power comes great responsibility, particularly regarding the accuracy of content published.
Marketing compliance, which ensures that promotional activities are accurate, current, legal and ethical for consumer protection, faces new challenges in this age of AI-generated content.
The Double-Edged Sword of AI-Generated Content
AI-generated content affords marketers unparalleled efficiency and creativity. Companies use ChatGPT, Jasper, and Copy.ai to create quality content in seconds. This makes it easier to target specific audiences and adapt to trends. But often, this rapid scalability outruns compliance checks, presenting accuracy, privacy, and accountability risks.
While AI can yield creative content, it can potentially produce unverified claims, violating truth-in-advertising regulations. In addition, AI relies on data to create personalised content. Poor data handling, however, can violate privacy regulations like the General Data Protection Regulations (GDPR) or California Consumer Privacy Act (CCPA), leading to potential fines and reputational harm.
Should we be worried?
There’s no question that AI brings real opportunities to the creativity of marketing teams and messaging. However, on its own and without human intervention to cross the ‘Ts’ and connect the dots, there are countless examples of inaccurate or fake content being published, in some cases, which have led to harmful outcomes.
One example can be seen from the actions taken by the Federal Trade Commission (FTC), a US regulatory body responsible for online and offline advertising compliance, against multiple companies that have relied on artificial intelligence to supercharge deceptive marketing that harms consumers. In August 2024, the FTC launched a ban on fake reviews, marking a pivotal shift for e-commerce businesses, particularly those operating on Amazon and other online marketplaces. Companies can be fined up to $51,744 per violation for posting fake, AI-generated online reviews and AI-generated testimonials.
The FTC’s actions remind us that safeguarding against misleading marketing and advertising is essential in an era of AI-generated content.
The Future of AI in Digital Marketing
The relationship between AI and marketing regulation will continue to develop and evolve as technology changes how we create and consume information. As regulation scrambles to catch up with the pace of technological development, new guidelines will undoubtedly be implemented to address AI-generated content. This will hopefully lead to outcomes where AI developers will create more sophisticated tools that integrate checks for accuracy.
Ultimately, consumer protection should be at the forefront of marketers, not just regulators. Balancing innovation with responsibility should be a common goal. If companies thoughtfully use AI and proactively address the potential flaws that come with a heavy dependence on them, they can realise AI’s full potential while staying within the bounds of the law and ethics.
Conclusion
Accurate marketing is more than a legal requirement; it is also a cornerstone of integrity and credibility in today’s digital age. With the proper approach, businesses can leverage AI to their advantage while ensuring their marketing practices stay compliant and ethical.
About the author
Shenaly Amin graduated in Advertising and Public Relations, aiming for a career in an ad agency but entered the online gambling industry in 2008. She worked with companies like InterCasino, Game Account Network, and LeoVegas before joining Rightlander in August 2019 to lead marketing efforts. Over the years, she has focused on affiliate growth, marketing strategies, and helping iGaming operators expand into new markets. Outside of compliance, she enjoys practicing yoga.
