Brands struggle with AI disclosure as usage surges across marketing

Nearly four in five global brands are already using AI-generated content in consumer-facing marketing, yet most are still unsure how, or when, to tell consumers about it.

New research from the World Federation of Advertisers (WFA) found that 78% of multinationals are now deploying AI-generated or AI-enhanced creative across channels, underscoring how quickly the technology has become embedded in marketing workflows. But despite this rapid uptake, eight in 10 brands are calling for clearer global guidance on AI disclosure, even as 67% have already developed internal policies.

For marketers, the tension lies in balancing scale with scrutiny. While AI is being widely used for product images (87%), marketing copy (80%) and background visuals (77%), uncertainty remains around how transparent brands need to be and what consumers actually expect.

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In fact, 82% of brands believe transparency around AI use is essential to protecting brand reputation, while 79% say it is key to maintaining consumer trust. Yet many are navigating a fragmented landscape, with 61% citing unclear or inconsistent regulations as a major challenge, followed by uncertainty around consumer expectations (46%) and a lack of industry best practice (39%).

According to the findings, AI is already deeply embedded across creative workflows, particularly in lower-risk applications. Brands are using the technology for product images (87%), marketing copy (80%) and background visuals (77%), driven largely by efficiency and cost savings.

However, adoption becomes more cautious when it comes to human likeness. Only 33% of brands are using AI to replicate or enhance images of real people, and just 18% are generating fully synthetic humans, reflecting sensitivity around authenticity and potential backlash.

That caution is echoed in attitudes towards disclosure. The research found near-universal agreement on labelling in higher-risk scenarios, with 96% of respondents saying AI-generated voices that could be mistaken for humans should be disclosed, and 91% agreeing the same for synthetic humans in prominent roles.

By contrast, only 4% believe AI-generated decorative backgrounds require disclosure, suggesting marketers are already making judgment calls based on context and perceived consumer impact.

The challenge for brands is heightened in APAC, where consumers are particularly discerning about AI-driven content. A recent report from B2C CRM platform Klaviyo found that nearly 51% of APAC consumers can spot low-quality AI content in their feeds, and they’re not impressed. Over half now frequently encounter poorly executed AI posts, replies, and product messaging, creating a high bar for quality and little tolerance for sloppy automation.

Furthermore, around 30% of APAC shoppers report using AI several times a week, outpacing the US and Europe, yet only 5% fully trust AI-generated brand content. With Singapore’s 2026 budget pledging more than SG$1 billion toward AI infrastructure and talent through 2030, brands face a growing tension: adopt AI to stay competitive but maintain human oversight to protect consumer trust and credibility.

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