Decades ago, digital advertising reshaped how businesses connect with customers. AI in advertising is pushing those capabilities further, automating everything from ad design to audience targeting.
First let me say this article isn’t about sounding the alarms—AI is an incredible tool for those who know how to use it responsibly. That said, the integration of AI in these long-trusted systems presents as a double-edged sword. Why?
The same tools that make advertising faster and easier also introduce complex risks that most users aren’t prepared to handle.
With the introduction of generative AI, ad platforms essentially do all the work themselves, including writing and designing creative, targeting the right audience(s), suggesting ad budgets, and making campaign optimizations.
Instead of spending 5+ hours on a new campaign, I can have something boilerplate up and running in 30 minutes.
Granted, I don’t want boilerplate, but a hefty portion of online advertisers aren’t professionals, they’re small business owners claiming their free ads credit and clicking through a setup wizard.
For long time professionals, the possibilities are changing, but the expectations haven’t. What do I mean by that?
- While many advertisers are unaware of the ethical challenges embedded in AI systems, even those who understand them often feel no urgency to adapt or educate others.
- The advertising and marketing industry as a whole is being rapidly undermined by AI capabilities. For many, the shifting dynamics of power and risk feel too monumental to confront.
- The reality of addressing the situation requires a complete rethinking of the business model. With cushy revenue models and a century of success backing the current “way we do things”, why would anyone want to change?
An Unpopular Opinion
Listen, I love a hot take. But instead of rebranding as AI specialists and delivering the same work in 1/10th of the time, agencies who want to exist in a few years need to take the much less exciting path of evolving responsibly. What’s the opposite of a hot take? An objective, well-informed, and thoughtful solution—a perfect segue into what no agency wants to hear:
Is AI governance boring? Perhaps. Is it trendy? Certainly not. But will focusing on ethics, risk tolerances and consumer adoption rates make you an indispensable vendor to your clients? Oh yes.
Now, let’s dig in.
The New Challenges of AI in Advertising
I had the incredible opportunity to study “Strategies for Accountable AI” at the Wharton AI Lab in 2024. The program was multidisciplinary, exploring everything from the geopolitical race for computational power to the ethical implications of non-use, responsible use, and misuse. The key takeaway?
Every department in every industry must consider how to move forward with integrity as AI becomes an increasingly integral part of daily life.
We had to choose our capstone topic in week one, so I chose to research advertising algorithms. To say it opened my eyes is a grand understatement. A few key issues stand out:
- Bias in AI Models: Algorithms aren’t neutral. They reflect the biases in their training data, which can skew ad targeting – like excluding certain demographics – unbeknownst to the person who set it up.
- Increased Responsibility for Privacy: Many tools shift the burden of data protection onto advertisers, even as consumer expectations for privacy grow.
- Misleading Transparency: Platforms claim to offer transparency, but the responsibility for understanding and mitigating risks falls on the advertiser.
- Misinformation Risks: AI tools can unintentionally amplify false or misleading narratives, especially if they’re left unchecked, like a certain platform making headlines for reversing its fact-checking commitment.
These aren’t isolated problems—they intersect with each other and influence outcomes across campaigns. A small oversight, like uploading inaccurate audience data, can snowball into broader issues that hurt both the brand and its customers.
How Advertisers Can Navigate These Risks
Addressing these challenges requires more than just tweaking settings or checking boxes. I’ll admit, even with an expert-level understanding of online algorithms, I wasn’t viewing ad platforms with the depth they demand today. Suggesting the entire industry adopt this stance might seem idealistic, but it’s arguably the right choice—both morally and financially.
Agencies that invest the extra time to do this right aren’t just making ethical decisions; they’re safeguarding the future of their business by preparing for the inevitable decline of outdated models.
Here are actionable steps organizations can take to ensure ethical and effective use of AI in advertising:
1. Build a Framework for Fairness
- Introduce fairness checks during campaign setup.
- Review ad performance regularly to identify and correct biases.
- Include diverse perspectives in your decision-making process to catch blind spots early.
2. Prioritize Data Quality and Consent
- Verify the accuracy of all data before using it in campaigns.
- Use third-party tools to audit compliance with privacy standards rather than relying solely on platform assurances.
3. Establish Real Transparency
- Create an internal governance system to monitor how AI tools are used.
- Share clear, honest updates with stakeholders about how these tools impact campaigns and consumer trust.
4. Equip Teams to Handle Misinformation
- Train your team to critically evaluate AI-generated suggestions.
- Develop a process for spotting and correcting inaccuracies in ads before they go live.
What sets successful advertisers apart will be their willingness to go beyond surface-level solutions.
Upskilling employees, conducting regular audits, fostering accountability and slowly reshaping industry standards will be the competitive advantage. You can achieve this by:
- Assigning someone to oversee AI governance, whether it’s an outside hire or an experienced team member with a deep understanding of ad platforms.
- Integrating ethical reviews into your workflow, from data uploads to campaign performance evaluations.
- Investing in cross-departmental training to ensure every team member understands their role in using AI responsibly.
The Future of Ethical Advertising
AI in advertising is already revolutionary, and this kind of power always comes with responsibility. The path forward isn’t flashy or quick.
In fact, long term success hinges on resisting the urge to following the trend – a concept inherently at odds with how advertising works.
Industry leaders who invest in governance and transparency will likely be the only ones standing when “how advertising works” has completely changed. So, who will shape the future of an industry at a critical crossroads? I’m as curious as the rest of you.
With nearly two decades in the industry, Belle Strategies Owner Rachel Creveling is a seasoned business consultant who crafts comprehensive frameworks that integrate operations, marketing, sales and HR to position her clients for optimal success. She excels at incorporating trending tech ethically and studied Strategies for Accountable AI at Wharton.