From a German editor fired for publishing a fake interview with Michael Schumacher created with artificial intelligence to users wanting to delete Snapchat because “My AI” raises concerns about privacy. Brands must consider the ethical implications of using AI in their marketing strategies.
In 2023, companies that aren’t using AI in their marketing strategy are missing out on the benefits it can bring to their businesses.
But as most companies become reliant on technology, there’s a growing concern about the negative effects of misusing AI, which can harm customers, and society in general, and ultimately damage the brand if not used properly.
The Rise of AI in Marketing
Although AI has gained popularity in recent years, it’s not new. It can actually be traced back to the 1980s when it was used to analyze customer data and behavior.
In the early 2000s, Amazon used AI to make product recommendations based on customers’ purchase history.
It recommended products that the customer would most probably like and eventually purchase.
As we see, AI has been in the market for a long time, but with the abundance of data generated through our interactions on social media and websites, its precision has been refined. Data is the food that feeds AI.
In simple words, Artificial Intelligence is a system that performs actions that would be considered intelligent if performed by humans. (Venkatesan, Rajkumar. “Artificial Intelligence in Marketing.”)
In marketing, AI algorithms can analyze large amounts of data, predict consumer behavior, and create personalized content that resonates with customers.
AI-powered chatbots can also provide customer support, answer queries, and guide customers through purchasing.
The benefits of AI in marketing are clear – it can improve customer engagement as interactions become more personalized, and customers receive what they expect.
However, as AI becomes more precise in its predictions, there is a risk that some professionals may be tempted to cheat or oversee the implications to achieve short-term financial gains and increase brand awareness.
Such actions would damage society’s values and expectations and ultimately harm the brand’s reputation.
AI Marketing Ethics
AI Marketing ethics studies the moral implications of how businesses use AI in marketing and it takes into account several issues like privacy concerns, data security, bias, and transparency.
Here you will find some examples of companies that have misused AI in their marketing strategies and how it has affected their brands.
Privacy Concerns: Snapchat Faces Backlash Over Intrusive AI Chatbot
Companies must respect customers’ privacy and transparently manage their data.
They must be mindful of how they collect data, how they use it, and how they protect it.
It’s illegal to store data that hasn’t been provided by the user or is unnecessary for the brand’s operation.
For example, Snapchat went through a hard time in March 2023 when the chatbot “My AI” was launched, because Google was inundated with searches such as How to get AI off Snapchat or How to get rid of my AI on Snapchat, indicating that users experienced negative interactions with the app.
While Snapchat was trying to promote user engagement by taking advantage of the growing demand for ChatGPT, some users found it intrusive.
Some users have reported that they asked Snapchat if it knew their addresses, and Snapchat replied with the exact addresses, even though they weren’t mentioned before.
Many brands, like Snapchat, are incorporating AI into their products to stay competitive.
However, as with any new technology, it’s crucial to use it responsibly.
In the early stages of AI development, it’s still an experiment, and companies need to be cautious when using user information.
Misuse of AI can lead to negative customer experiences, which can result in decreased customer retention and a negative brand reputation.
Data security: Capita Share Price Drops 1% Following Cyber Attack
Companies must make sure that their AI systems are secure and that they protect customer data properly because they work with vast amounts of data and that makes them vulnerable to cyber-attacks.
Capita, a company that provides IT services to UK public and private organizations including the Ministry of Defence, said that it was hacked on April 2023, affecting 4% of its servers.
The company believes that the hackers may have accessed some of its customers and internal data.
This situation has negatively impacted their share price since it fell 1% in London.
The attack on Capita is yet another reminder that cyber attacks are on the rise, and many businesses and charities are vulnerable to such attacks.
Bias: The Harmful Impact of AI Algorithms on Black Patients’ Health
Businesses must ensure that the data they use to train algorithms is fair and unbiased.
This will help prevent discriminatory decisions and ensure that everyone is treated fairly.
In marketing, if an algorithm is trained on biased information, it can lead to discriminatory decisions based on existing prejudices or unfair treatment against certain groups of people.
For example, in 2016, ProPublica, a nonprofit newsroom that investigates abuses of power, found that a healthcare company was using an AI algorithm that was biased against black patients.
The algorithm was not intentionally racist, but it was trained to predict which type of patients would need extra care based on the ones that would cost the healthcare system more money in the future.
Since black patients used to have lower healthcare costs than white patients with the same number of chronic conditions, the algorithm ended up scoring white patients as equally at risk of future health problems as black patients who had many more diseases.
As a result, the algorithm incorrectly identified white patients as being more in need of medical support than black patients, even when the black patients had more severe health problems.
Transparency: Fake Interview with Michael Schumacher Sparks Outrage
Businesses should be transparent about how they use AI in marketing to make decisions that affect customers.
They should also provide customers with the choice to opt out of AI-based marketing products or services.
In addition, businesses must be transparent when providing AI-generated content, as AI can create images and videos that are not real.
In the news industry, this can increase the spread of fake news just to boost traffic and short-term financial gains.
For example, in April 2023, the German magazine Die Aktuelle promoted a fake interview with Michael Schumacher, a seven-time Formula 1 champion driver who has not been seen in the public eye since 2013 after a skiing accident.
Both the photos and the answers in the interview were created using artificial intelligence.
(Die Aktuelle/Getty)
After the truth was uncovered, Schumacher’s family planned to take legal action against the magazine.
The family has been trying to protect his private life for more than a decade, and there is no public information about his health conditions.
Although the magazine has responded by firing the editor who created the fake interview, the consequences for the brand are significant, as it has damaged its reputation.
Final Thoughts
AI is transforming the way businesses interact with their customers, but it’s important to consider the ethical implications of its use.
AI marketing ethics is a critical issue that requires businesses to consider privacy concerns, data security, bias, and transparency.
By incorporating AI marketing ethics into their practices, businesses can ensure that they are using AI in a way that aligns with societal values and expectations.
