AI in creative advertising: Game-changer or legal nightmare?

From dreamy Ghibli-inspired portraits to polarising Coca-Cola commercials, artificial intelligence has become both a revelation and a reckoning for the world of advertising. As agencies race to experiment with AI-generated content, the industry is grappling with a new frontier—one that promises efficiency and creativity but also raises ethical, emotional, and legal questions. Is AI the creative partner of the future or a ticking time bomb for originality and artistic ownership?

On the innovation front, opinions are split. While AI-generated ads are undeniably efficient and often awe-inspiring in execution, many leaders believe they are still rooted in imitation. Adrine D’mello, Creative Director - Strategy at White Rivers Media, describes them as “a convergence of innovation and imitation.” She notes that while AI excels at recognising patterns and generating content, it still lacks the emotional depth and cultural nuance that human creatives bring to the table. Sanjay Kaul, Chairman of Impact Communications, agrees. He believes AI is a “sophisticated mimic,” powerful in execution but ultimately derivative. According to him, empathy, context, and cultural understanding remain firmly within the domain of human creativity. Dr. Sandeep Goyal, Chairman of Rediffusion, takes a different view, arguing that AI’s potential is limitless. He believes AI will eventually exceed the delivery capabilities of humans, performing tasks faster, cheaper, and more intricately than current ad agencies can manage.

So, does that mean AI will eventually replace creative professionals? Goyal is candid: AI will likely replace a majority of the workforce, but those who adapt and learn to work with the technology will survive. D’mello and Kaul take a more balanced stance, seeing AI as a collaborative tool rather than a replacement. D’mello envisions agencies evolving with “hybrid thinkers” who can blend storytelling with technological fluency. Kaul echoes this sentiment, asserting that AI will be “a tool in the toolkit, not the artist itself.” Just as the digital revolution didn’t end TV advertising, AI won’t end creativity—it will redefine it.

Public perception of AI in advertising is a blend of curiosity and caution. While industry leaders recognise the promise of scale and personalisation, audiences are more skeptical. Kaul highlights that consumers can sense when content lacks “soul or context.” D’mello agrees, stating that trust depends on transparency; audiences are more likely to accept AI-created content if brands openly disclose its role and uphold ethical standards. Goyal, however, anticipates a near future where consumers can no longer distinguish between human-made and AI-generated ads—especially as the economic benefits of AI become too good for brands to ignore.

But this rapid shift also raises concerns about cultural dilution. Both D’mello and Kaul warn that AI could flatten artistic diversity, replacing local flavour with generic, global sameness. “AI is a brush, not the artist,” Kaul reminds us. For storytelling to retain its impact, humans must remain involved in shaping narratives with emotional intelligence and cultural relevance.

The legal challenges are also mounting. With lawsuits emerging over AI visuals trained on copyrighted works, the industry is entering murky waters. Goyal compares the situation to the early days of cable and satellite, predicting that legal frameworks will eventually catch up. Kaul believes we’ll soon see clearer intellectual property laws and licensing structures, similar to how music sampling now requires royalties and permissions. D’mello stresses the need for consent-based training models and transparency in dataset usage to protect creator rights.

On the ethical front, agencies are still finding their footing. Goyal admits that many are floundering, with some infringements happening more out of ignorance than intent. Still, the responsibility is growing. D’mello insists agencies must take a stronger ethical stance, working with artists and being transparent about how AI is used. Kaul believes the time has come to shift from fascination to frameworks—by establishing ethical charters, transparent disclosures, and fair collaborations.

As algorithms increasingly influence creative decisions, some worry that we’re witnessing a cultural shift—one where data-driven predictability overshadows human intuition. D’mello warns that AI-led trends could homogenise creativity, while Kaul cautions against “conformism,” urging the industry to use AI to decode culture, not dictate it. Goyal, however, believes storytelling will persist; though the medium and formats may evolve, a well-told story will always find its audience.

So what does responsible AI use in advertising look like? All three leaders agree on the need for ethical guardrails. Kaul urges agencies to define clear guidelines before diving into experimentation, reminding them that integrity should not be compromised for innovation. D’mello emphasises fairness, compliance, transparency, and ongoing human oversight as pillars of responsible AI use. Goyal sums it up best: “The do’s and don’ts of the business will take time to become normative. Till then, it is the Wild West.”

As AI continues to redefine the creative playbook, one thing is clear—the future of advertising will not be human versus machine, but human and machine, working together with integrity and imagination.