People no longer trust what they see, and the ad industry hasn’t agreed on what honesty looks like in response.
Does an AI-generated background warrant a label? What about a synthesized soundtrack? Or does the threshold only kick in when it’s a human face, a product claim or a body that never existed? These feel like mundane distinctions until you factor in what labelling actually costs. Research from NYU Stern and Emory University suggest that AI disclosure can reduce ad effectiveness by up to 31.5%.
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