How will AI be used in Advertising?

The Super Bowl, which will be broadcast on Feb. 9, and will feature the Kansas City Chiefs and the Philadelphia Eagles, is much more than just a major sporting event. It's a way for advertisers to showcase cars, consumer goods, and more during the highly anticipated commercials. This year, artificial intelligence may play more of a role than we anticipate.

Denish Shah

"AI has been used for ads for several years," said Denish Shah, a marketing professor at Georgia State’s Robinson College of Business, adding, "but its evolution, particularly with generative AI, is where things are getting really interesting—and complex."

In recent years, there has been a surge in AI-generated advertising campaigns, with major brands like Toys "R" Us, Coca-Cola, and Under Armour experimenting with AI-powered content creation. "On paper, it's incredibly efficient," Shah said. "Imagine generating entire video ads with simple prompts. The potential for cost savings is immense." However, the early results have been mixed. "Consumers are becoming increasingly discerning," he observed. He mentioned a Coca-Cola holiday ad that ran in December, which was a remake of a 1995 ad to inspire nostalgia. However, it failed to resonate with audiences because "it lacked the authentic emotional connection that is crucial for successful advertising" because it was made entirely using AI.

Shah emphasized the importance of human creativity in the AI-driven age. "While AI can be a powerful tool for enhancing and refining creative work, the core of a compelling ad – the emotional core, the cultural nuance, the humor – must originate from the human mind." He said AI can serve as a collaborator, augmenting human creativity rather than replacing it. "Imagine using AI to enhance video footage, refine audio, or personalize messages," he said. "This blend of human ingenuity and technological innovation has the potential to create truly impactful and engaging campaigns."

The upcoming Super Bowl can serve as a crucial test ground for AI-powered advertising. "Subtle integration of AI might go unnoticed," Shah said. "But if an entire ad is generated by AI, audiences will likely be able to discern it. Transparency is key. If companies are using AI, they should be upfront about it."

The capabilities of AI have grown exponentially in recent years, particularly with the advent of generative AI.

"Generative AI has really gained traction in the last two years," Shah said. "It’s now being used to create content—written copy, images, and even videos. For example, in the case of the Coca-Cola holiday ad, they created it entirely using generative AI. The technology can generate video content by using prompts."

But that also brings up potential ethical implications when using generative AI in advertising. "AI algorithms are trained on vast datasets, and these datasets can reflect and amplify existing biases," Shah said, adding, "The technology is only as good as the data and the people using it, and marketers need to understand how to leverage AI effectively while also recognizing its limitations."

Shah’s expertise stems from a career rooted in understanding the intersection of technology and marketing. For the past seven years, he has directed the Social Media Intelligence Lab, a research initiative that explores how digital data shapes business decisions. He also serves as the executive director of the Marketing Roundtable, a forum for Chief Marketing Officers (CMOs) from major companies headquartered in Georgia, including Chick-fil-A and Delta Airlines.

"We’re constantly exploring topics like AI, data privacy, and consumer behavior," Shah said.