Brands Must Balance AI and Authenticity

The Association of National Advertisers (ANA) has just announced its annual Marketing Word of the Year and, for the first time, two words were selected: “authenticity” and “agentic AI.”

The ANA’s decision reflects a marketing landscape simultaneously disrupted by autonomous artificial intelligence (AI) and anchored by a sharp public cry for transparency. As one expert states, corporations, brands, and marketing professionals should take note.

“In recent years, consumers have seen this technology evolve in real time—with increasingly sophisticated AI-generated content infiltrating television, social media, and other platforms,” says Professor of Marketing and Management Colleen Kirk, D.P.S., who has researched consumer response to AI-generated marketing messages. “However, at the end of the day, people still crave real connection and transparency. In the new year, brands must figure out how they strike a balance between leveraging AI and reaching consumers in a way that still feels genuine.”

Kirk’s research on consumers and AI-generated marketing messages, published last year in the Journal of Business Research, provides much-needed insight into how using AI to generate emotional content could negatively impact brands’ perceptions and, in turn, the consumer relationships that support their bottom lines. The findings suggest that companies must carefully consider how to disclose AI-authored communications, prioritizing authenticity in their interactions with consumers.

Some brands are already adapting their methods. For example, Kirk notes that while Coca-Cola’s 2024 AI-generated holiday ads received consumer backlash, this year’s advertising signals improvement and seems to have resonated more with audiences. She believes this may be due to the brand’s decision to use AI-generated animals rather than humans to evoke holiday nostalgia, while also communicating the high level of human involvement in creating this year’s ad.

“Consumers are becoming ever more skeptical of the human origin of advertisements and marketing messages. While AI tools offer marketers an exciting new frontier, these professionals should bear in mind a time-tested principle: authenticity is always best,” says Kirk.