Making the Case for an AI Marketing Ethics Policy
Should organizations have an AI ethics policy specific to marketing? Learn the reasons why we say yes.
TL;DR
The Necessity of Ethical Guidelines Amid Rapid AI Adoption
As AI technology rapidly permeates the corporate world, there’s a widespread consensus among executives about the urgent need for clear ethical guidelines, particularly in marketing.
Marketing's Unique Data Interaction
Due to its unique way of collecting, using, and storing data, and its pivotal role in customer interactions, marketing demands its own specific AI ethics policies, distinct from broader corporate policies.
Legal Compliance and Building Consumer Trust
Adhering to data privacy laws and regulations is critical. Transparency in AI usage can foster consumer trust, a key asset in the competitive marketplace.
Adapting AI to Compliance Needs
Marketing departments must integrate AI tools within existing legal frameworks to manage data responsibly and avoid issues like bias, which could lead to discrimination.
Strategic Advantage Through Ethical Practices
By developing and openly adhering to AI ethics guidelines, companies can stand out and attract customers who prioritize ethical considerations in their purchasing decisions.
The lightspeed adoption of generative AI (GenAI) has left corporations scrambling to define its acceptable and ethical uses in their environments. In March, Delloite published the results of a recent survey demonstrating that the overwhelming majority of corporate executives felt clear guidelines were necessary to communicate AI policies to their workforces. Nearly half (47%) of the respondents reported having existing guidelines, while an additional 37% indicated they were close to implementing their own.
Company AI “manifestos” are usually designed to be general enough to suit the organization’s use of AI technology. They typically include guidance on fair use, bias prevention, transparency, data privacy and storage (often to meet legal requirements), accountability, legal compliance, and more. As these policies become commonplace, it begs the question — are they specific enough to govern AI ethics in marketing? Or should marketing have its own set of AI ethics policies?
Marketing groups collect, use, and store data uniquely, some of which have legal and ethical implications. The same goes for customer communications and interaction. Because its activities are so different from those of other groups within a corporation, there are some compelling reasons why a marketing-specific set of AI guidelines makes sense.
Marketing is often a customer’s first interaction with a company. It may also be the last if it makes a poor initial impression.
Consumers are growing increasingly aware of the importance of data privacy and security. That’s why most companies publish their privacy policies and are starting to place pop-up cookie banners, asking website visitors to consent to use cookies (text files that store user data) on their websites.
While the U.S. does not have a cookie law per se, some state privacy regulations (such as the California Online Privacy Protection Act or CalOPPA) govern the collection and use of web visitor data. Depending on the data stored in a specific cookie, CalOPPA rules may apply.
The ePrivacy Directive protects the confidentiality of electronic communications within the European Union (EU). It includes rules that govern tracking cookies, requiring websites to gain consent from visitors before depositing cookies that track online activity. It also includes rules about disclosing the way a company will use cookie data. The ePrivacy Directive applies to any website used by citizens of the EU, regardless of where it is hosted.
These laws reflect the fact that today’s savvy consumers will not do business with companies they don’t trust. Demonstrating a commitment to ethical AI marketing practices is crucial to establishing this trust.
How can you demonstrate this commitment?
Consider starting with disclosure.
Publish your AI ethics policy.
Be transparent about how and why you use AI in your marketing activities.
Stay true to your word.
Instantprint, the UK's largest online printer, instituted an AI ethics policy. Its head of marketing says every business should. Read More»
Ensure Compliance with Laws Governing Marketing Activities
As discussed above, there are laws about how companies may collect, use, and store customer data. While this isn’t new, the marketing department needs to know how AI may fit into these compliance frameworks.
For example, using chatbots for automated customer service is becoming the norm. By asking a user to enter their name and account information to handle an inquiry, the chatbot harvests data that may be regulated. An AI marketing ethics policy should include guidance for these use cases.
Some laws govern discrimination and bias, especially in finance and talent acquisition. Because machine learning models may leverage biased datasets, some uses of AI in marketing could put compliance at risk, resulting in legal penalties or consumer backlash. An AI marketing ethics policy can help keep these considerations at the forefront of your mind and protect your business.
Leverage AI Ethics as a Competitive Advantage
There is a significant knowledge gap because generative AI is still in its infancy. Science fiction has long stoked public fears about how AI might evolve to cause harm (robot uprising, anyone?), and many consumers are extremely wary. Developing, adhering to, and proactively communicating about AI ethics guidelines helps you stand out in the marketplace, attracting ethically conscious consumers.
Keep Employees on the Same Page
It’s important to note that even though your company may be aware of high-level AI ethics guidelines, your employees may not know how those guidelines relate to their specific activities.
For example, the person writing chatbot scripts may not be aware that trying to fool website visitors into thinking they are communicating with a human is unethical or that storing chatbot data in insecure locations could result in data privacy violations. Spelling these guidelines will gain importance as your company ramps its use of AI in marketing activities.
Moreover, your company may have multiple marketing teams under multiple leaders who may need to be more conscientious about ensuring their reports understand the AI ethics issues governing their charters. An AI ethics policy that applies to all marketing activities helps keep everyone in sync.
Assign Accountability
Not only is it essential for marketers to understand how to use AI ethically, but it is also critical for everyone to know who is responsible for ethical violations.
For example, if your company uses third-party software for marketing activities (such as AI-driven analytics), it behooves you to designate a person on your marketing team who is responsible for conducting due diligence and for being accountable for vendors who act outside of the guidelines.
Accountability frameworks can also include mechanisms for addressing biases, errors, and unintended consequences of AI algorithms.
Marketing Plays a Critical Role
AI ethics are becoming an essential consideration in almost every business area. Investors, partners, and other stakeholders increasingly expect companies to have robust AI ethics policies, reflecting broader societal expectations. If you’re a public company, this is an even greater imperative. These ethical AI practices contribute to long-term business sustainability by avoiding reputational damage, legal issues, and negative impacts on consumer trust.
Undoubtedly, AI will play a progressively more significant role in every company’s marketing activities. This technology will eventually be woven into most customer interactions, written communications, advertising, collateral production, website technology, and analytics. Being proactive is better than doing crisis PR after an incident. An AI marketing ethics policy is just good business.
What do you think? Do organizations need an AI ethics policy specific to marketing? Share your opinion in a comment.
AI Marketing Ethics Policy Resources
AI ethics policy template (PDF) specific for a marketing department’s use. Download here»
Wiki containing lists of AI ethics policies. Not all are specific to marketing but could be adapted for that purpose. Read More»
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