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The AI Hesitation: Why Big Brands Are Cautious?

The rise of AI in marketing has been nothing short of revolutionary. From automating copy-writing to enhancing visual and audio production, AI-powered tools promise to make marketing faster, better, and cheaper. Yet, despite the buzz, big brands like Pepsi, Frito-Lay, and La-Z-Boy are treading cautiously.



The Concerns

  1. Brand Safety: Companies are wary of how AI could potentially harm their brand image.

  2. Data Privacy: The use of AI often involves data analytics, raising concerns about data security.

  3. Copyright Issues: AI's capability to generate content poses questions about intellectual property rights.

The Wait-and-See Approach:

PepsiCo, the parent company of Pepsi and Frito-Lay, is reportedly investing heavily in AI for product development and sales analytics. However, when it comes to marketing, they are adopting a "wait-and-see" approach. Todd Kaplan, CMO of Pepsi, acknowledges the technology's potential but emphasizes that it's still in its "nascent stage."

The Risk of Inaction:

While big brands are cautious, their hesitancy could be a double-edged sword. Emerging brands with fewer resources may leapfrog their larger competitors by taking calculated risks with AI. Mike Nellis, CEO of Authentic, warns that the "wait-and-see approach" carries its own risks, potentially leaving big brands behind the curve.

The Future:

As the industry stands on the cusp of Web3, the next iteration of the internet, the debate around AI's role in marketing continues. But one thing is clear: brands that find a way to responsibly integrate AI could gain a significant competitive edge.

At Ad Value, we believe in leveraging technology to its fullest while mitigating risks. If you're looking to explore the opportunities of AI in marketing, we're here to guide you!

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