Let's Chat: Influencers and Brands Testing the Waters of Generative AI Must Navigate Data Privacy and FTC Issues

Venable LLP

Generative AI is creating previously unimaginable possibilities for influencers and brands to engage with consumers. Rather than merely posting on social media, influencers will be able to utilize AI to have two-way conversations that feel authentic. Influencers can do this literally in their own voice, having unique dialogs with countless people at the same time.

Influencers and brands are accustomed to the rules governing what can be said on social media, but now they’ll need to start thinking about what sort of information they can elicit from their fans and consumers in the course of unique and unpredictable interactions, and what they can do with that information, because they will have the ability to gather more consumer information than ever before, and in ways that may be difficult to control.

However, use of Generative AI by influencers and brands, like all new technologies, remains subject to all of the same laws and regulations. Appropriate disclosures around material connections and sponsored consent as required by Federal Trade Commission (FTC) rules must be made, and various state and federal privacy laws may apply. Influencers and brands need to ensure that their practices remain compliant, including whether the AI tools can be used in a compliant manner (those terms and conditions do matter).

Influencers and brands also need to be attentive to the output of generative AI before using it. Is it accurate? Is it potentially misappropriating someone else’s work? Is it the message they want to send? A lot of time, effort, and care go into building an image, and vigilance is necessary to maintain and protect that image.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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