How Long Before the Use of AI in Marketing is Regulated?

The Marketing Association’s Keith Norris argues that it is surely only a matter of time before we see regulations governing the use of AI in marketing in New Zealand. Internationally, many of the AI-related laws coming into effect are part of comprehensive consumer privacy laws and will allow users to opt out of profiling. Keith outlines some key risks for organisations when using AI models and AI generated outputs.

"An observant marketing manager recently spotted a change in the terms and conditions of her company’s email marketing and automations platform, Mailchimp.

The changes came with a warning that `without limitation, the laws and regulations governing artificial intelligence and related technology are uncertain and evolving, and the ability to use the AI Model and outputs may be adversely affected in future.’ How true! We really have very little idea how customer or content management will develop in an AI-dominated world.

The Mailchimp changes are worth noting because they cover the use of AI content generation. You may not do business with this particular service provider, but their new terms are a good pointer for the rules we will have to put in place for our own organisations. The general theme makes it clear that responsibility for the accuracy and integrity of AI-generated material lies clearly with you, the user. Their new t’s and c’s require you to ensure that your use of any output does not violate the intellectual property rights of your service providers or any other 3^rd party. At the same time, you (the user) must acknowledge that your own outputs may not be protectable in an AI world!

Here are some key elements to watch out for of rules which could govern the use of AI generated content:

• Service providers will make no warranties that their AI models or any outputs are free from error or bias. You are solely responsible for their accuracy.
• You must ensure that you don’t use material which could violate someone’s copyright or intellectual property rights.
• You may have to provide a disclaimer with any AI-generated outputs explaining that the content may contain errors and should be independently verified.
• Your agreement with CRM service providers may give third parties license to access and use your own content unless you word service agreements carefully.

It is surely only a matter of time before we see regulations governing the use of AI in marketing. Of the AI-related laws going into effect in 2023 internationally, many are part of comprehensive consumer privacy laws. These laws regulate AI and automated decision-making by allowing users to opt out of profiling. Expect something similar in New Zealand soon, bureaucrats have overseas contacts too!"

Source: Keith Norris, 27 November 2023