How AI is rewriting the brand playbook
What brand leaders need to know in the age of AI
In this new era of artificial intelligence, brand leaders are facing a different set of challenges regarding how to build relevance, trust and authenticity. They must reimagine how influence is earned, how products are discovered and how creativity can still evoke emotions that inspire meaningful connections. A recent national survey conducted by REAL Brand Strategy of more than 1,000 consumers explored whether the use of AI in advertising and branding impacted brand trust and engagement—and how these perceptions differ by generation. “The objective was to understand how AI is shaping the brand building process,” said Serena Saitas, founder and head of strategy at REAL Brand Strategy. “We examined topics associated with brand discovery, trust and AI’s involvement in shaping shopping experiences across three generations.” The results, she said, were notable.
Building brands in the age of AI
As AI shapes culture and consumer behavior, brand leaders are moving at full throttle while new AI-native companies proliferate. The current momentum is challenging companies to invest in upskilling their teams—but there is a learning curve. Building brands in the age of AI will require an investment of time and resources. Audrey Wisch, founder of Curious Cardinals, said her company has expanded from tutoring children to advising Fortune 500 executives on how to use AI. She stressed that though she and her team are “all AI-positive and enthusiastic, it doesn’t mean we’re lowering the bar of the quality of our work.” “There’s this misconception that AI means cutting corners and skipping hard work,” Wisch said. “In reality, to use AI in substantive ways that actually move the needle and save costs or save time for the business, it requires an extensive time investment upfront.” Adam Larson, Hoka’s global brand creative director, is using AI primarily for internal streamlining and efficiency needs. “I’m more interested in how it can help to shape processes, identify room for improvement and efficiencies, and help with scheduling, project management and production,” he said. “There are so many potential areas for application.” Larson’s team uses ChatGPT for research, such as location scouting or analyzing demographics. And though he said they don’t use it for generating any outward-facing brand imagery or creative output, it has become “increasingly useful” when converting CAD drawings into renders or in storyboarding scripts more efficiently.
Generational differences in AI engagement
As with any new technology, engagement and adoption across generations tend to vary, and, generally speaking, the younger a user is, the more tech-savvy they are. Thus, it would be reasonable to assume that Gen Z would be the most enthusiastic about AI. However, REAL Brand Strategy’s study found millennials to be the most comfortable with AI adoption, with 45% identifying as early adopters compared with 32% of Gen Z and 24% of Gen X. “Millennials are sort of the hinge generation for AI adoption,” Saitas said. “They’re old enough to have brand loyalties but young enough to feel comfortable experimenting, which is why they outpace both Gen X and Gen Z when it comes to trusting AI to guide brand choice.” Consumers are generally willing to let AI access information to personalize shopping results. However, these findings also vary by generation. Gen Z is the most cautious with sharing voice data or social connections, but more open with sharing their social media activity. Millennials are willing to share across shopping, search, health, biometrics—as long as personalization or a fair exchange is clear. These findings can be particularly useful for brands with specific generational targets who want to better understand how to appeal to their nuances. It’s clearly not a one-size-fits- all equation. “Some see AI in advertising as innovative, and others see it as a shortcut where you’re sort of giving up some authenticity. So right now, there’s some tension because creativity is still sacred territory. “Some see AI in advertising as innovative, and others see it as a shortcut where you’re sort of giving up some authenticity. So right now, there’s some tension because creativity is still sacred territory.”
Creativity, craft and the human touch
From an industry perspective, the impact of AI is inescapable—it’s not a question of if, but when and how quickly brand leaders can adapt. Yet while major brands are investing heavily in AI, consumers may not be moving at the same pace. This gap between corporate adoption and consumer readiness raises key questions for marketers. “Some see AI in advertising as innovative, and others see it as a shortcut where you’re sort of giving up some authenticity,” Saitas said. “So right now, there’s some tension because creativity is still sacred territory.” Jeremy Somers saw the potential in AI almost immediately: “I’m a career creative, and I knew that generative was going to change all of those things and the tools were going to get better and better every day,” he said. In 2022, Somers launched NotContent.ai, the first AI-assisted creative agency—but he’s always been clear that the human touch is what turns the “nothingness” of AI work into creative output. Wisch agreed, noting that while AI can be helpful for brainstorming, authenticity still matters most. “You have to be the ultimate arbiter of which words you choose,” Wisch said. “I always say AI is just one stop on your journey, whether it’s idea generation or idea refinement, but I never would use it end-to-end.” In a very real sense, the arm’s length that creatives are currently keeping between their input and AI’s output is exactly what a brand’s identity hinges on. Brand leaders can’t sacrifice the value of human insight, emotion and years of artistic honing that build authenticity and maintain a brand’s unique identity, even if the latest technology is being utilized somewhere in the campaign. Somers emphasized that AI always requires human refinement. “Quality projects will still need quality supervision, just as they always have,” he said. “We as professional creatives over many decades will rise to the top and will be actually worth a lot more.”
The transparency imperative
Sometimes the use of AI in ads is easy to spot—like when a model’s skin is a little too luminous or a vacation location on Instagram is perhaps too fantastical. Depending on the product or the campaign, that might be the idea. But as AI becomes more integrated into advertising, design, service and content, more consumers may question whether they are being intentionally misled and start to doubt the truth behind a brand’s core offering. It’s a delicate balance that will require forethought and strategy. According to the REAL Brand Strategy survey, 75% of respondents expect disclosure if a brand used AI in its advertising, product design or customer service. “We learned that today the majority of consumers would like to know if a brand uses AI in its advertising,” Saitas said. “What’s interesting is 52% of Gen Xers said it wouldn’t impact their perceptions, while 38% of Gen Z said it would decrease trust.” That seems to speak to a larger 21st-century concern of data fatigue, but Gen Z in particular said the use of AI in advertising and creative development decreased their trust in a brand, while the larger portion of millennials said it increased trust and the majority of Gen X (52%) said it had no impact. “Gen Z is the most skeptical, and I think for younger consumers, AI in creative raises the question: Is this authentic?” Saitas said. “Is this all based on an algorithm pretending to appeal to me, or is there an authentic voice and a big idea behind this?” “I think people are just so tired of having to decipher what’s real versus what’s not, and what can I trust versus what I can’t,” said Wisch. For Somers, he said that even though his company is unabashedly AI-forward, “I try to go through most of our client calls and most of our pitching without talking about AI at all. It’s really just a new set of tools that make things faster and easier and for us to be able to output more.” “The reality is, you can walk into any Target, CVS, Sephora, Urban Outfitters or Walmart in the country and see multiple brands with AI on their packaging, on the end cap, on the billboards, on the signage, on the inserts,” Somers said of the current proliferation of AI tech in creating marketing materials for brands. “No one has ever said, ‘Is that AI?’ It’s a non-event.” While Somers acknowledges that some AI use cases do require transparency, the main pushback he receives from clients is that they do not like having AI models replicate people. Somers likens listing every use of AI to listing every use of any advanced technology. “You wouldn’t ask me if we use Photoshop, or do we use Illustrator, or do we use QuarkXPress,” he joked while making a point about the long arm of technology. “It’s just because we’re in this bubble at the moment.” Ultimately, brand leaders need to build a creative and strategic plan and a vision around AI and start experimenting and committing resources if they haven’t already—it takes time to learn the rules so they can be broken. “Brand leaders must look closely at their own needs, ensure their values are translated and upheld through AI and keep learning,” Saitas said, “because we are only at the beginning.” “The technology is so powerful and moving so fast,” Wisch added, “that it can humble us all.” “I always say AI is just one stop on your journey, whether it’s idea generation or idea refinement, but I never would use it end-to-end.”
