00:00:00
And one thing I counsel companies with
00:00:02
is to say, listen, don't just be sort of
00:00:04
a hammer looking for a nail. In other
00:00:06
words, yes, the tools are there, but you
00:00:09
don't want to just use the tools for the
00:00:10
tools sake. You want to actually be able
00:00:12
to solve a problem that you would not be
00:00:15
able to solve, but for the use of these
00:00:17
AI tools. And that's a different way to
00:00:19
think about it with respect to deploying
00:00:20
them in ways that can really enhance
00:00:22
your productivity. I mean, it is
00:00:24
literally the wild wild west. it I'm
00:00:26
seeing right now when I when I am
00:00:28
watching the the early stages of AI a
00:00:32
few years ago to the quality of what can
00:00:34
be produced now. We're [music] going to
00:00:36
get very very soon Dan we're going to
00:00:38
get to a point where you will not be
00:00:40
able to [music] tell the difference
00:00:41
between an AI generated creative piece
00:00:44
of output uh and something real. Welcome
00:00:47
to the ripple effect [music] the podcast
00:00:49
that takes you on a journey through the
00:00:51
minds of Warton faculty. I'm your host
00:00:53
Dan Looney and in each episode we'll be
00:00:55
diving deep [music] into the inspiration
00:00:57
behind the groundbreaking research that
00:00:59
Wharton professors have conducted and
00:01:02
exploring how their findings resonate
00:01:04
with the world today.
00:01:07
So many things being discussed and how
00:01:09
AI is impacting them right now. One area
00:01:12
that we're going to talk about right now
00:01:14
is the world of marketing and the use of
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visuals in advertising. This obviously
00:01:19
from the advertisers's perspective uh
00:01:22
helps them save [music] money and time
00:01:23
in production, but is it the right way
00:01:25
to go about this when you're talking
00:01:26
about that connection to the consumer
00:01:29
and how much should the public know
00:01:30
about how much [music] AI is being used
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in the advertisements they see? Pleasure
00:01:35
to be joined by our friend America Shre,
00:01:37
professor of management here at the
00:01:38
Wharton School and co-host of the
00:01:41
Marketing Matters podcast [music]
00:01:42
on the Wharton podcast network. AR, good
00:01:45
to talk to you again. How are you, sir?
00:01:47
I'm doing well, Dan. Happy New Year to
00:01:49
you. Very excited for this conversation.
00:01:51
>> Thank you. All right, so we're early in
00:01:53
2026 as we are talking here right now.
00:01:57
How much AI is involved in marketing and
00:02:00
advertising at the moment?
00:02:01
>> Well, I love that question, Dan. I think
00:02:03
that what we're seeing right now, and
00:02:05
this is amazing to me to watch, is that
00:02:08
there is an incredible trajectory of
00:02:10
accelerated participation and use of AI.
00:02:14
It's Dan, it's the wild west. is
00:02:17
everyone is jumping in on this and the
00:02:20
parameters are are being discussed and
00:02:23
framed out as we go. And so what I'm
00:02:26
seeing especially with smaller companies
00:02:29
is that there is this leveling up just
00:02:32
like you just said where you're able to
00:02:34
do things that you could not do as a
00:02:37
small company in terms of cost
00:02:39
prohibitive creative that you can create
00:02:41
now using these types of tools. And so
00:02:43
we're going to continue to see smaller
00:02:45
companies really trying to reach that
00:02:48
same level of quality in the creative
00:02:50
that the bigger companies can see. And
00:02:52
the on the consumer side, just like
00:02:54
you're saying, consumers are aware that
00:02:57
these are tools that are in use from a
00:02:59
marketing perspective. certainly with
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respect to actually creating
00:03:03
advertisements, messaging, things like
00:03:05
that, but also on the back end with
00:03:08
respect to the research that has to get
00:03:10
done to understand what consumers want
00:03:13
and to do the typical types of things
00:03:15
that we do as marketers. So these tools
00:03:17
are there and in my point of view,
00:03:20
there's no choice but to take on these
00:03:23
tools and dive in and try to learn how
00:03:26
you can best be productive using these
00:03:28
tools. So you mentioned the research
00:03:29
side. How much are you doing that with
00:03:33
your work at the moment so that you can
00:03:35
best understand where that that that
00:03:39
right level is so that you're you're
00:03:41
getting the message across but you're
00:03:43
also not impeding the consumer as well.
00:03:46
>> Yeah, I love that question Dan. I even
00:03:48
in my I' I've said this even in my own
00:03:50
work I was hesitant because you know I
00:03:53
am a digital immigrant and so all of
00:03:55
these things are just wildly new to me
00:03:59
>> and so but even in my work as a
00:04:01
professor I've had to force myself to
00:04:04
lean in on these tools to help me uh
00:04:06
write and come up with ideas to have an
00:04:09
agent that can go out and do research on
00:04:13
my behalf and to help me form my ideas,
00:04:17
articulate my ideas, get structure
00:04:20
around my ideas in the classroom. It's
00:04:23
it's happening with respect to my
00:04:25
interactions and engagement with the
00:04:27
students. It is totally there. And so,
00:04:29
as I said, there's no choice. It would
00:04:32
be like that. Product services
00:04:33
organizations uh saying to themselves in
00:04:36
1995, you know what? Uh let's skip this
00:04:39
whole internet thing. Let's not jump in.
00:04:40
You can't do it. AI is this next
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milestone. It is this thing we're all
00:04:45
going to have to use it. And you know,
00:04:47
we're just going to have to get over
00:04:48
that threshold of fear and jump in and
00:04:52
start trying to use these tools. And
00:04:53
every day I seem to wake up, Dan,
00:04:55
there's a new set of tools that are
00:04:57
being introduced to me, a new brand, a
00:04:59
new product platform of AI machinery
00:05:02
that is, you know, entering into my
00:05:05
enter into into my space. And so I have
00:05:07
to figure out even in my own world, what
00:05:09
are the tools I need to level up on my
00:05:11
skill sets? And I've already started
00:05:13
that process. You mentioned a moment ago
00:05:16
big business versus small business in
00:05:18
terms of the use of these tools in
00:05:20
marketing. So, it would seem to me that
00:05:22
this is a great opportunity for smaller
00:05:24
businesses to play catch-up and to be
00:05:27
able to play on the same playing field
00:05:29
to be able to level up with some
00:05:31
businesses in their specific sector
00:05:34
because of how AI can give them a boost.
00:05:38
That's 100% correct. And I love this
00:05:40
because to me what's happening here as a
00:05:43
marketplace change uh Dan is the idea
00:05:46
that everything get everyone has to get
00:05:49
better and that's actually ultimately
00:05:51
better for the consumer if smaller
00:05:54
companies can compete with larger
00:05:56
companies and there's more competition
00:05:58
and there's parody with respect to
00:06:00
brands product service organizations
00:06:01
from innovative smaller startup types of
00:06:03
companies competing with the big guys.
00:06:06
>> That's a good thing. And so we're seeing
00:06:08
right now many of these companies
00:06:10
starting that process of figuring out
00:06:12
how to bring these tools into the play.
00:06:14
And so what I think is critical about
00:06:16
this Dan is that one of the things that
00:06:19
I am noticing here that's very very
00:06:21
important is this idea of the question
00:06:24
of how do I use these tools? And one
00:06:26
thing I counsel compl companies with is
00:06:28
to say listen don't just be sort of a
00:06:30
hammer looking for a nail. In other
00:06:32
words, yes, the tools are there, but you
00:06:34
don't want to just use the tools for the
00:06:36
tools sake. You want to actually be able
00:06:38
to solve a problem that you would not be
00:06:40
able to solve, but for the use of these
00:06:43
AI tools. And that's a different way to
00:06:45
think about it with respect to deploying
00:06:46
them in ways that can really enhance
00:06:48
your productivity.
00:06:49
>> Well, and probably is something that up
00:06:51
until what maybe 5 10 years ago,
00:06:53
companies really didn't even probably
00:06:54
put that into the mix to begin with.
00:06:56
Right.
00:06:57
>> That's 100% correct. And like now the
00:06:59
the I mean it is literally the wild wild
00:07:01
west. It I'm seeing right now when I
00:07:04
when I am watching the the early stages
00:07:07
of AI a few years ago to the quality of
00:07:10
what can be produced now. We're going to
00:07:12
get very very soon Dan we're going to
00:07:14
get to a point where you will not be
00:07:16
able to tell the difference between an
00:07:18
AI generated creative piece of output
00:07:21
>> uh and something real. And that's scary
00:07:24
because now we're talking about you know
00:07:26
affecting consumers. We're talking about
00:07:28
how do you deploy these tools in an
00:07:30
ethical way? How do you how do you stop
00:07:32
misinformation? How do you make sure
00:07:34
that you're doing these things the right
00:07:36
way? And so this is going to be opening
00:07:38
up a whole plethora of so you know
00:07:41
regulatory issues uh companies best
00:07:43
practices and right now I I'm not aware
00:07:46
of any sort of like focus parameters
00:07:48
that are being put out there. So it's
00:07:50
all sort of forming in real time and
00:07:52
we'll see uh how this all plays out. But
00:07:54
there's no question in my mind that if
00:07:56
you are a product brand service
00:07:58
organization, you have to start using
00:08:00
these tools.
00:08:01
>> All right. So you kind of answered what
00:08:03
I wanted to talk about next in terms of
00:08:04
best practices, but do you think it's a
00:08:07
necessity to have kind of a whether it's
00:08:10
not official rules, but kind of best
00:08:13
practices guidelines that companies kind
00:08:16
of try to adhere to so that they are
00:08:19
delivering the message that they want
00:08:21
to, but at the same time they're not
00:08:23
infringing on the consumer's life, uh,
00:08:27
their, you know, their territory. I I
00:08:30
love that point, Dan. I think that
00:08:32
that's a that's a critical question
00:08:34
that's at the that basically is at the
00:08:35
crux of the issue here, right? Right.
00:08:37
When we're thinking about how do
00:08:39
consumers respond to these types of
00:08:41
creatives and creative output, do they
00:08:44
look at this and say like, you know,
00:08:46
this is not authentic, it's made up,
00:08:48
it's fakery, or do they look at this and
00:08:50
say, hey, that's pretty cool. And so, I
00:08:52
think the answer to that is it depends
00:08:53
on how it's deployed, right? So if
00:08:55
you're CocaCola and you're making AI
00:08:57
generated ads, it you might it might be
00:09:00
a very different reaction, let's say,
00:09:02
from the point of view of the consumer
00:09:04
in terms of a smaller sort of company.
00:09:06
So there's nuance here. In other words,
00:09:08
how do I deploy the tool? How do I make
00:09:10
sure I'm deploying the tool in a way
00:09:11
that ensures that the consumer
00:09:13
understands that I know what they detect
00:09:16
as real and not real? and that they
00:09:18
understand I'm using these tools to
00:09:21
create deeper connections, more resonant
00:09:23
connections, especially with younger
00:09:25
consumers perhaps, uh, and that these
00:09:27
tools can help me do that. But just
00:09:29
using these tools to be using the tools
00:09:31
is probably not as let's say efficient
00:09:34
and desirable as really saying you know
00:09:37
what I have a specific issue of an ad I
00:09:39
need to create and AI is going to help
00:09:42
me do this to really facilitate my brand
00:09:44
to facilitate the meaning system around
00:09:46
my brand and AI can help me do this in a
00:09:49
way that I would not be able to do
00:09:50
otherwise so I'm going to deploy it
00:09:52
>> but because there is so much AI content
00:09:55
kind of out there right now and it seems
00:09:57
like it grows every day and for many of
00:10:00
us a lot of that AI content has a level
00:10:04
of humor to it.
00:10:05
>> Does do marketers benefit from the fact
00:10:09
that there seems to be that connection
00:10:11
between AI and humor right now and it
00:10:14
will benefit them if they go that route
00:10:16
with the messages that they are trying
00:10:18
to deliver? I I think you're touching on
00:10:20
something that's a really important
00:10:22
insight here Dan and that is to say yes.
00:10:24
The answer to that is yes. In other
00:10:26
words, the expectation of AI and humor,
00:10:29
there's a natural synchronicity there,
00:10:31
right? And we're all seeing the funny
00:10:32
memes that are coming out. Sure. Uh that
00:10:34
are are so fantastical, you're just it
00:10:37
blows your mind, right? Whether it be,
00:10:39
you know, President Trump and the former
00:10:41
president of Venezuela walking
00:10:42
together. Yeah. Uh or whatever it is.
00:10:44
It's it's one of these things that is
00:10:46
hilarious.
00:10:47
>> Rocky Rocky and your point, Dan.
00:10:50
>> Rocky and Apollo Creed, except it's
00:10:51
Trump and Maduro.
00:10:54
Yeah, exactly. Exactly. And but here's
00:10:57
something that's really deep and in
00:10:58
insight that you just pointed to. It's
00:10:59
like the humor is a natural gateway into
00:11:02
this, right? So, it's a safe way to kind
00:11:04
of uh expose people to these tools and
00:11:07
your use of these tools as a product,
00:11:08
brand, service, organization in a way
00:11:11
that's that doesn't potentially have the
00:11:13
same backlash that you might have uh
00:11:16
with respect to something that you would
00:11:18
you would purport is an actual kind of
00:11:20
real thing that's happening. So if they
00:11:23
know it's fantastical, then you you get
00:11:25
a sort of get out of jail free card if
00:11:27
you will in terms of deploying that kind
00:11:29
of thing. And that's one of the nice
00:11:30
things about using humor uh as part of
00:11:33
the the way to create that familiarity
00:11:35
and safety with the computer with the
00:11:37
consumer so that they can trust what
00:11:39
you're doing with respect to when you
00:11:41
execute on these types of creative
00:11:43
efforts uh later on down the road. So
00:11:45
the understanding that the public has
00:11:47
currently about the use of AI in
00:11:50
marketing efforts, do you know yet
00:11:53
whether it attend it tends to occur
00:11:55
better with younger generations, digital
00:11:57
natives than older generations or is
00:12:00
everybody kind of picking up on what is
00:12:02
going on right now? I I love that point.
00:12:05
I I think the answer is the latter. I I
00:12:08
think everyone is attuned to because of
00:12:10
what you had mentioned with respect to
00:12:11
to the proliferation of AI in in the
00:12:15
humorous comedic kind of setting uh that
00:12:18
people are aware of this. I would think
00:12:20
that younger consumers have a a more
00:12:24
let's say builtin kind of familiarity
00:12:27
with these sorts of tools because
00:12:28
they're growing up swiping left and
00:12:30
right and things of that nature, right?
00:12:32
Uh but I think there there is still
00:12:34
again this notion of the more and more
00:12:36
proliferation of these AI tools that
00:12:38
happens out there Dan across generations
00:12:40
of consumers the less it becomes
00:12:43
differentiated and so there's a
00:12:45
challenge there because once everyone
00:12:46
starts using these tools then everything
00:12:49
level sets and it's sort of like the
00:12:50
same. So the question becomes how do I
00:12:52
differentiate my specific use of these
00:12:54
tools uh in ways that elevate my brand
00:12:57
above competition? And that's going to
00:12:59
be where the the the the the people who
00:13:02
are most creative, the the the genuine
00:13:05
authentic narrative storytellers are
00:13:07
going to be able to really elevate
00:13:09
because they're going to understand how
00:13:10
to use these tools to create trust and
00:13:13
resonance and brand connection with both
00:13:16
younger and older consumers. And we're
00:13:18
going to wait until, you know, that
00:13:19
happens with respect to the market kind
00:13:21
of shaking out with respect to the tools
00:13:23
themselves, but also the products,
00:13:24
brands, services, and organizations that
00:13:26
are using these tools. So as a professor
00:13:29
and as a researcher,
00:13:31
are there elements that you are most
00:13:34
interested to see how they develop
00:13:37
within this entire AI growth marketing
00:13:40
process? Yeah, I think so. I again
00:13:42
there's two areas that I'm interested
00:13:44
in. One is on the side of the the
00:13:47
creating the intelligence that allows us
00:13:49
to understand and predict how consumers
00:13:51
are going to react to the types of
00:13:52
things we would like to do as a brand,
00:13:54
product, service or organization. And
00:13:55
that's on this this sort of gathering
00:13:57
information and understanding the
00:13:59
consumer side and then on the other side
00:14:01
executing on creating uh messages,
00:14:04
advertisements, promotional kinds of
00:14:06
things that can really elevate on the
00:14:08
creative side as well. So, I think
00:14:09
there's going to be a convergence of
00:14:11
these two areas happening within the
00:14:13
context of those marketers that are
00:14:16
savvy enough and smart enough to jump on
00:14:19
this train now and to start figuring out
00:14:21
how to use these tools in the best ways
00:14:23
that we've been talking about in this
00:14:25
conversation. I
00:14:25
>> I'll finish up with this co uh uh
00:14:28
question because you just mentioned
00:14:29
brand and brand is something that you
00:14:31
and I have talked about a lot especially
00:14:32
in recent years. All of this that is
00:14:35
being done, all of this that is being
00:14:37
advanced still has to be done with the
00:14:41
brand at the forefront of the thought
00:14:44
process because the last thing a company
00:14:46
wants to do is do something that is
00:14:48
going to really put a crimp but a hurt
00:14:51
on their brand even with this advanced
00:14:53
technology. That's 100% correct. Right.
00:14:56
And so I love that point because it
00:14:59
points to for example we talked about
00:15:00
the Coca-Cola ads that have been coming
00:15:03
out. Porsche came out with an ad that
00:15:05
they literally came out and said this
00:15:08
was not made with AI and you know it's
00:15:11
been going viral because of that. So it
00:15:14
really illustrates the point that you're
00:15:15
making Dan which is that again you don't
00:15:17
want to just use this tool for the
00:15:19
tool's sake.
00:15:20
>> Yeah. You definitely want to use the
00:15:21
tool, but you want to use the tool
00:15:22
[music] in service
00:15:24
>> of elevating the brand, keeping things
00:15:26
consistent, making sure synchronicity is
00:15:29
there, making sure that you're able to
00:15:31
use these [music] tools in ways that
00:15:32
create resonance that you would not
00:15:34
otherwise be able to do if you weren't
00:15:36
using [music] these tools, and you're
00:15:37
thinking about it from that focus point
00:15:38
of view, you probably aren't going to
00:15:40
get into any trouble.
00:15:41
>> Americus, always fun to chat with you,
00:15:43
my friend.
00:15:44
>> I appreciate you, sir. [music] Thanks a
00:15:46
lot. Thank you. America, a professor of
00:15:48
marketing here at the Wharton School.
00:15:50
And of course, as you can tell, for
00:15:51
those of you watching this video on
00:15:53
YouTube, he is the co-host of Marketing
00:15:56
Matters right there on the screen behind
00:15:57
him with our friend Barbara Khan every
00:16:00
week here on the Wharton Podcast
00:16:02
Network. Thank you for listening to The
00:16:04
Ripple Effect. We hope you found this
00:16:05
episode informative and engaging. Don't
00:16:08
forget to subscribe and leave us a
00:16:10
review so that we can continue to bring
00:16:12
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00:16:14
School.
