Marketing & Media

Why Your Business Needs to Establish an AI Policy—and Quickly

Kelly Nylander, Creative Director

Artificial intelligence (AI) possesses the power to transform businesses and agencies by improving marketing efficiency at a massive scale. However, it’s not all upside; when left unchecked, AI can cause significant problems for companies. Nailing down how and when to use AI can save you headaches and heartaches down the road. That’s why your company must establish an AI policy—and soon.

AI Isn’t a Silver Bullet

Don’t get us wrong, AI can do amazing things. However, there’s a dark side to all that automation, so before you go all-in on AI, there are a few critical things to know.

1. AI Lacks Emotional Intelligence
AI lacks emotional intelligence, intuition, expertise and contextual understanding, leading to potential issues like tone-deaf messaging, misinterpretation, nonsense and the dissemination of false information.

2. Data Quality, Bias and Lack of Innovation
Algorithms are only as good as the data used to train them. The algorithm can produce inaccurate predictions and flawed strategies if the data is biased, incomplete or poor quality. It’s important to note that AI functions best with focused, data-driven tasks. Think of it as a specialist rather than an innovator. It’s vital to understand that you can’t conjure incredible results from thin air; AI simply allows you to use your knowledge and expertise at scale – and improve upon it.

3. Loss of Human Connection
Overreliance on AI can lead to an impersonal customer experience at a time when personalization is critical to communicating with consumers.

4. Ineffective Implementations
Lack of understanding of technology and applications by marketers may lead to ineffective implementation of AI, resulting in misalignment with organizational goals and less than optimal results.

5. Opaque Algorithms
Some AI algorithms, such as Google’s, are considered “black-box” algorithms, with decision-making processes that are not easily interpretable. In industries where accountability and transparency are crucial, that opaqueness can cause a PR or budget emergency.

6. Ethical Concerns
AI has been quite controversial due to perceived ethical issues. Artists worry that AI trained using their works may violate copyrights, plagiarize their work or steal their intellectual property.

7. Regulatory Considerations
If not trained correctly, AI systems can make decisions leading to discriminatory practices that violate laws. In addition, AI must comply with data laws such as California’s Consumer Privacy Act (CCPA) and Europe’s General Data Protection Regulation (GDPR).

Marketers should approach AI in marketing strategically, understanding its capabilities and limitations. Prioritizing ethical considerations, adhering to regulations and safeguarding privacy are crucial in maximizing AI’s potential and avoiding pitfalls.

Create an AI Policy for Your Business

To mitigate potential issues with AI use, companies should implement a well-defined AI policy to serve as the guiding framework for responsible AI use. Key components of the policy should include:

  • Ethical guidelines – Clearly articulate the ethical practices that should guide employees’ use of AI. Define acceptable and unacceptable activities.
  • Transparency practices – Ensure employees, stakeholders and consumers understand transparency’s role in a brand’s decision-making and interactions.
  • Accuracy checks – Implement mechanisms for regular accuracy checks and ensure AI-generated insights align with your marketing efforts.
  • Who can use AI – Define who in the company can use AI and the specific tasks they can use it for in marketing and operations. Also consider any third-party contractors you work with to disclose their use of AI in work processes.
  • Relevant laws and regulations – Stay informed about and adhere to applicable laws and regulations governing AI use in marketing, privacy and email communications. Comprehend the legal aspects of using AI-generated content and images, including trademarking.
  • Confidentiality Rules – Establish guidelines for handling sensitive data to ensure AI processes adhere to confidentiality rules and regulations.
  • Data Protection – Address how AI should take personal data and ensure compliance with data protection and consumer privacy laws. Prioritize understanding where and how data will be used before uploading it to open AI sources.
  • Prepare a Crisis Plan – Have a PR crisis plan ready to manage and mitigate disasters resulting from AI incidents.

What’s Coming in AI

Advancements in AI technology, including natural language processing, image recognition and sentiment analysis, will make AI increasingly more capable, precise and accurate.

AI won’t replace marketers but will provide tools for more efficient work. Humans can focus on tasks requiring creativity, emotional intelligence and nuance. The true value emerges from a hybrid model blending technology and humanity.

AI use is only becoming more prevalent in business, so it’s best to get started sooner rather than later in drafting a policy to avoid potential AI crises and begin harnessing the incredible power of artificial intelligence for your marketing efforts.

EVR’s seasoned team, with an unparalleled diversity of marketing expertise, will superpower your marketing efforts. Reach out today to initiate a transformative journey for your brand!

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