As generative AI ads flood Singapore market, experts say poorly made ones could backfire on brands, agencies

Generative AI advertisements are becoming increasingly prevalent in the Singapore market as companies seek to showcase their technological prowess, according to marketing industry experts. While this trend is undeniable, it comes with potential risks as poorly executed content may backfire on brands and agencies.

The demand for creative agencies specializing in AI content has surged in the past six months, with some agencies reporting a four to five times increase in inquiries compared to the previous year. Such agencies now cater to a wide range of clients, from small- and medium-sized enterprises to government agencies.

Some well-known Singaporean brands, such as Mr Bean, have embraced generative AI for their advertisements and virtual idols. However, the use of AI-generated content is not without criticism. Many consumers find these advertisements unconvincing or misleading, leading to a loss of credibility for the brands involved.

Bryan Tan, chairman of the Advertising Standards Authority of Singapore, acknowledged that the authority has received feedback on the use of generative AI in advertisements, though the number of complaints is comparable to the previous year. Tan emphasized that mere disclosure of AI usage does not absolve advertisers of responsibility for potential misleading statements.

Experts warn that using generative AI in advertisements may signal a lack of effort or creativity on the part of the brand, potentially damaging its credibility with consumers. Additionally, some consumers may feel uncomfortable with the uncanny nature of virtual influencers created through AI, further eroding trust.

While generative AI does not automatically damage a brand, poor execution can lead to negative publicity and a damaged reputation. Companies must strike a balance between embracing new technologies and maintaining authenticity in their advertising efforts.