The Advertising Standards Council of India’s (ASCI) Academy has released its latest report, ‘AdNext: The AI Edition,’ at its Global Adda event, during the ICAS Global Dialogues Summit in Mumbai.
This report is an in-depth exploration into the impact of Artificial Intelligence (AI) on the advertising industry, with a specific focus on the dynamic Indian market and arrives at a critical juncture, as AI fundamentally reshapes how brands connect with consumers, optimise campaigns, and personalise experiences.
The research was conducted by Parallel HQ, a design tech firm. In addition to being supported by Google and Games 24X7, the study is part of the thought leadership work at ASCI Academy which is supported by Diageo, Hindustan Unilever Mondelez, Nestle, Cipla Health, Coca-Cola, Colgate, Pepsico, P&G, Kenvue, Bajaj Auto, and Dream Sports.
The report brings together perspectives from over 27 leading Indian practitioners and thought leaders from across the digital ecosystem, including brands, agencies, legal experts, academia, regulators, and tech innovators.
Through a combination of primary research, focus groups and one-on-one interviews, secondary research, and opinion articles, the report offers a nuanced understanding of the opportunities and challenges presented by AI in advertising.
The report explores four key areas to provide a comprehensive overview of AI’s evolving role in the advertising landscape:
- Perception of AI: The report highlights the optimistic outlook surrounding AI integration in advertising, with experts recognising its potential to drive efficiency and personalisation. A significant finding is the understanding that AI’s true strength lies in augmenting, not replacing, human creativity, enabling advertisers to craft compelling and nuanced narratives.
- Industry Adoption and Readiness: The report examines the current landscape of AI adoption across various sectors in India, noting that digital-native industries are embedding AI more seamlessly into their core operations compared to legacy sectors, which are finding creative ways to integrate AI through customer-centric applications.
- Consumer Impact and Privacy: This section explores the unique openness of Indian consumers towards AI-powered technologies, particularly in advertising, positioning India as a potential testbed for advanced AI advertising strategies.
- Responsible AI Integration: Recognising the need for guardrails in this rapidly evolving landscape, the report advocates for responsible AI frameworks and principles to guide the development and deployment of AI in advertising.
Key takeaways from the report include
- the widespread consideration of AI integration across organisations
- the unanimous recognition of the need for industry-wide responsible AI frameworks
- the importance of robust governance frameworks for successful AI outcomes
- the democratising effect of generative AI for SMEs
- India’s potential as a global testbed for AI advertising solutions due to consumer openness
The report outlines the need for all key stakeholders to engage in continuous dialogue and invest in research to keep pace with the impact AI is creating. Refining and fine-tuning industry-wide frameworks for the responsible use of AI will be essential in shaping a future where technology serves both businesses and consumers equitably.
The report released at the Global Adda event was followed by a presentation from Parallel HQ on the findings of the report. The event also featured a dynamic panel discussion on the future of AI in advertising, navigating innovation, and responsibility.
Speakers like Tanu Banerjee from Khaitan and Co, Kunal Guha from Google, Sameer Chugh from Games 24×7, Chandradeep Mitra from Pipalmajik, and Mary Engle from BBB National Programs, explored the balance between pushing AI’s boundaries and ensuring responsible practices, data privacy, and consumer trust.
The discussion also addressed AI’s impact on human creativity, responsible advertising, and the role of self-regulatory bodies in shaping AI practices.
To read the full report, click here.
Manisha Kapoor, CEO and Secretary General, ASCI, said, “The advent of AI presents an unprecedented opportunity for the advertising industry in India to innovate and connect with consumers in more meaningful ways. However, this power must be wielded responsibly, with a focus on transparency, responsibility, and building lasting trust with consumers. ‘ADNext-The AI Edition’ serves as a resource for understanding these nuances and navigating the path forward.”
Robin Dhanwani, Founder and CEO, Parallel, added, “AI is reshaping industries rapidly, and advertising is no exception. As a design studio invested in AI’s future, partnering on this research was an exciting opportunity to explore its adoption, impact, and regulatory questions. ASCI has always led the way in shaping responsible industry practices, and this report is a testament to that—offering a roadmap for the industry to adopt AI responsibly and effectively.”
