80% of brands worried about agency use of gen AI, WFA survey finds

Nearly two-thirds of global brand owners (63%) are now using generative AI in their marketing strategies, according to research from the World Federation of Advertisers. However, the survey also revealed that many businesses have serious concerns about the technology, especially regarding how it’s being used by agency partners.

The study found that 80% of multinational brands are worried about how their creative and media agencies are using gen AI on their behalf. Legal risks (66%), ethical concerns (51%) and potential damage to reputation (49%) were identified as major obstacles to wider adoption.

Many marketers admitted that they lack the skills to fully use the technology, with 55% citing limited capabilities in this area. Additionally, 49% of respondents pointed to a lack of maturity when it comes to AI use within their organisations.

Despite these challenges, the use of gen AI is growing. The 63% of companies currently using it is a significant jump from the 45% reported in a similar WFA study last year. Only 9% of brands said they have no plans to use generative AI in their marketing.

To help brands address the legal risks of AI use, the WFA has released new voluntary guidelines, developed in partnership with marketing consultancy R3. The guidelines aim to assist the 55% of companies planning to review their contracts with media and creative agencies to include protections around AI use.

WFA CEO Stephan Loerke said: “To harness the undisputed potential of gen AI, brands must first get a grip on the legal and compliance implications. WFA’s AI Community and the guidance it’s producing will supercharge companies’ abilities to navigate the challenges so that they can prioritise the opportunities."

Currently, only 36% of companies have introduced specific terms in their contracts to govern how their partners use gen AI, and just 29% have reviewed their existing agreements to address AI-related clauses.

However, 48% of brands are planning to add these terms, and 55% intend to review their contracts to ensure compliance with data governance, introduce warranties and indemnities and secure ownership of AI-generated outputs.

Greg Paull, co-founder and principal at R3, said: "Ensuring that agency contracts are updated to address gen AI is an action every brand should take. Not only is it effective risk management, but it’s also an opportunity for marketers and their agencies to initiate important conversations about the role of AI in their partnerships."

The research also highlighted that gen AI is most commonly being used for content creation, content ideation and task automation. While most brands are using the technology to improve efficiency in terms of time and cost savings, many say it’s too early to measure AI’s full impact on marketing effectiveness.

Although only 40% of respondents are currently using AI to generate marketing assets like text, images or music, 37% plan to do so soon. However, companies remain cautious about relying on AI-generated content for tasks like chatbots, customer support or altering the appearance of talent.