LONDON, Aug 18 (Reuters) – Food giant Nestlé has some of the world’s biggest advertisers (nesn.s) Unilever, a multinational consumer goods company (ULVR.L)Executives, they say, are experimenting with using generative AI software such as ChatGPT and DALL-E to cut costs and increase productivity.
But many companies are wary of security and copyright risks as well as the dangers of unintended biases hidden in the raw information feeding the software, which means humans will continue to be a part of the process for the foreseeable future.
Generative Artificial Intelligence (AI), which can be used to generate content based on past data become a talking point Over the past year, it has captured the public’s imagination and sparked interest across multiple industries.
Marketing teams hope this will provide cheap, fast and virtually limitless ways to advertise products.
Executives at two top consumer goods companies and the world’s largest advertising agency told Reuters that investment is already mounting amid expectations that AI could forever change the way advertisers market products.
The technology can be used to create seemingly original text, images and even computer code based on training, rather than simply classifying or recognizing data like other AI.
WPP, the world’s biggest advertising agency, is working with consumer goods companies including Nestlé and Oreo-maker Mondelez. (MDLZO.O) to use generic AI in ad campaigns, said its CEO Mark Read.
“The savings could be 10 or 20 times that,” Reed said in an interview. “Instead of flying a film crew to Africa to shoot an ad, we built it virtually.”
In India, WPP worked with Mondelez on an AI-powered Cadbury campaign with Bollywood superstar Shah Rukh Khan, producing an ad that featured the actor asking passers-by to shop at 2,000 local stores during Diwali.
Small businesses used a microsite to create versions of their own store’s advertisements that could be posted on social media and other platforms. According to WPP, approximately 130,000 ads were created, representing 2,000 stores, which received 94 million views on YouTube and Facebook.
WPP has “20 young people in their twenties who are AI apprentices” in London, Reid said, and has partnered with the University of Oxford on courses focused on the future of marketing. The “AI for Business” diploma provides training in data and AI for customer leaders, practitioners and WPP executives. According to WPP’s website.
The team works under AI expert Daniel Hulme, who was appointed Chief AI Officer at WPP two years ago.
“It’s much easier to think of all the jobs that will be disrupted than all the jobs that will be created,” Reid said.
Nestlé is also working on ways to use ChatGPT 4.0 and Dall-E 2 to help market its products, said Aud Gandon, its global chief marketing officer and an ex-Googler. (google.o) the executive said in an emailed statement.
“The engine is answering campaign briefs with great ideas and inspiration that are completely grounded in brand and strategy,” Gandon said. “The ideas are then developed further by the creative team to eventually produce the content they want, for example for our websites.”
While lawmakers and philosophers alike still debate whether the content produced by generative AI models is meaningful. anything like human creativityAdvertisers have already started using the technology in their promotional campaigns.
In one instance, research from the Dutch gallery Rijksmuseum went viral online on September 8, 2022, after a research team from the Dutch gallery Rijksmuseum used X-rays to reveal new objects hidden in Baroque artist Johannes Vermeer’s oil painting ‘The Milkmaid’.
Less than 24 hours later, WPP used OpenAI to “reveal” its own imagined scenes beyond the boundaries of a painting’s frame in a public YouTube ad for Nestlé’s La Latière – or Milkmaid – yogurt and dairy brand. K used the generator system DALL-E 2.
Through nearly 1,000 replays, the video for Nestlé’s The Milkmaid Edition generated a “media value” of 700,000 euros ($766,010) for the Swiss food giant. Media value is the cost of advertising required to generate the same amount of public exposure.
WPP said it cost nothing to create the content. A spokeswoman for the Rijksmuseum said it has an open data policy for non-copyrighted images, meaning anyone can use its images.
Nestlé is not alone in its experiments.
Unilever, which has more than 400 brands including Dove soap and Ben & Jerry’s ice cream, has its own generative AI technology that can write product descriptions for retailers’ websites and digital commerce sites, it said.
But Unilever is concerned about copyright, intellectual property, privacy and data, Aaron Rajan, global vice president of go-to-market technology, told Reuters.
The company wants to prevent its technology from reproducing human biases, such as racial or gender stereotypes, that may be embedded in the data it processes.
“Making sure that these models are coming back with an unoptimized view of the world when you type in certain words is really important,” he said.
Nestlé’s Gandon told Reuters the company is “putting security and privacy at the top.”
Consumer companies are using data from retailers like Walmart (WMT.N)carrefour (CARR.PA) and Kroger (KRN) To empower its AI tools, said Martin Sorel, executive chairman of advertising group S4 Capital and founder of WPP.
“You have two types of customers: one who is fully engaged and one who is saying ‘let’s experiment’,” he said.
Industry executives say some consumer goods companies are wary of security risks or copyright infringements.
“If you want a general rule: Treat everything you tell an AI service as if it were a really juicy piece of gossip. Would you mind taking it out?”, Okta’s vice president of customer trust said Ben King, who is a provider. Online Authentication Services.
He continued, “Would you want someone else to know similar things about you?” “If not, don’t tell the AI.”
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Reporting by Richa Naidu and Martin Coulter; Editing by Matt Scuffheim and Daniel Flynn
Our Standards: Thomson Reuters Trust Doctrine.
The London-based reporter covers retail and consumer goods, analyzing trends including coverage of supply chains, advertising strategies, corporate governance, sustainability, politics and regulation. Previously wrote about US-based retailers, major financial institutions and covered the Tokyo 2020 Olympic Games.