
The Marketing AI SparkCast with Aby Varma · 2026-06-30 · 40 min
Key moments - from our scoring
Substance score
39 / 100
Five dimensions, 20 points each
The Marketing AI Pulse monthly brief covers four critical developments shaping marketing in mid-2026. At Cannes Lions, major platforms - Meta (Brain Memory), Google (Gemini in Ads), TikTok (Symphony Agent), Amazon (Alexa Agentic Ads), and Canva (Grow 2.0) - announced AI integration as standard workflow, not optional add-on. OpenAI's first Cannes appearance, claiming 20% of queries carry commercial intent, signals advertising as a core business. Yet ironically, the festival's most-celebrated award winners (Apple TV, Queen Base One) rejected AI entirely, choosing physical craft for gloriously human-made work. The BCG study exposes a critical CMO AI Gap: while 96% say AI drives transformation, only 33% have actually implemented it meaningfully, and just 8% run multiple autonomous agents. The real blocker isn't technology - it's change management, governance, and strategy. New York's synthetic performer disclosure law (effective June 2026) requires brands to label AI-generated talent in ads, with $1,000-$5,000 penalties. Meanwhile, consumer data reveals a disconnect: 60% say AI messaging turns them off, yet AI-referred website visitors convert at higher rates. For CMOs, the implication is clear: AI is now default infrastructure, not experiment, requiring serious governance, brand clarity as foundational, and ChatGPT as mandatory channel strategy.
Major platforms announced AI as standard workflow: Meta's Brain Memory learns brand identity and generates creative; Google embedded Gemini directly into Google Ads for real-time optimization; TikTok launched Symphony Agent for agentic creator matching; Amazon debuted Alexa Agentic Ads enabling transactions within ads; Canva released Grow 2.0 for cross-platform publishing and performance tracking.
While 96% of CMOs say AI drives transformation, only 33% have actually transformed significant parts of their organization, and just 8% run multiple autonomous agents. The disconnect stems from the challenge of moving from experimentation to real implementation, requiring change management, governance, and strategy - not just tool access.
As of June 9, 2026, New York requires conspicuous disclosure when ads use AI-generated synthetic performers (digital humans that don't exist). The obligation falls on the ad creator, not the platform. Penalties are $1,000 for first violation and $5,000 for each subsequent violation.
CMOs should conduct an audit of actual AI maturity (not aspirations), treat brand clarity and guidelines as foundational infrastructure for AI tools, ensure leadership prioritizes transformation beyond marketing operations, and build integrated workflows rather than relying on tool access alone.
The data shows 60% of consumers dislike visible AI messaging, yet AI-referred website visitors convert better - suggesting the value lies in invisible, strategic AI use for optimization and operations rather than visible AI-generated creative or copy.
Our reviewer’s read on each dimension, with quotes from the episode.
The episode surfaces several concrete data points from named external studies (BCG, Adobe, WordPress), but the bulk of content is platform-announcement recapping and generic 'what CMOs should do' advice. The density of genuinely non-obvious claims per minute is low, with significant time spent on weather chat, mutual affirmation, and surface-level commentary.
just 8% are running campaigns with multiple autonomous agents
AI referred shoppers converted 54% better than non AI referred shoppers and AI referred shoppers spent 53% more time browsing than non AI referred shoppers
The most interesting intellectual move is surfacing a genuine contradiction - consumers say they hate AI branding while AI-referred traffic dramatically outperforms - but it's identified and then left largely unexplored. Almost all other commentary recycles widely circulated takes ('AI is the default,' 'garbage in, garbage out,' 'brand clarity as infrastructure') without first-principles interrogation.
60% of US consumers say that brands using the word, the phrase AI in their messaging is a turn off
Apple TV took the design Grand Prix for a shot entirely in camera using physical glass sculptures. No AI, no cgi. And the jury called it gloriously human made.
The format is two marketing consultants co-hosting a news-digest episode rather than a practitioner interview; Matt Cyr is identified only as being from 'Loop AI' and references 'clients' in a generalist consulting capacity. There is no senior operator, CMO, or functional leader from a named organisation bringing direct at-scale experience.
This is something I see literally every week with our clients, folks who are really trying to bring AI into their organizations in a meaningful way
I've talked to CMOs many times who talk about all the different tools that they're implementing. And I'll, uh, ask, are those tools talking to one another?
The episode cites several named studies (BCG, Adobe, WordPress) with real numbers, and one original-sounding data point ($240k to tool up a 200-person org on ChatGPT and Claude) adds practical texture. However, all statistics are sourced from published third-party reports, not the hosts' own data, and Cannes product announcements lack any performance or adoption metrics.
about $240,000 to give everybody in the organization access to those two tools on an ongoing basis for a full year
AI traffic to retail websites was up 138% year over year
The dominant register is mutual validation - 'yeah, absolutely,' 'does this track for you?' - with no meaningful challenge to any cited statistic or claim. Questions are soft hand-offs rather than probes, and the opening minutes are occupied with weather talk and South-of-France daydreaming rather than substantive inquiry.
Are you feeling and hearing similar things, Abby, when you're talking to folks? This disconnect between experimentation and implementation?
You and I need to figure out how to get there next year. Abby, I think you and I in the south of France could be, could be a good time.
Computed from the transcript - who did the talking, and the words that came up most.
The Marketing AI SparkCast brings to you the Marketing AI Pulse Monthly Brief that curates the most relevant stories and examines the implications for CMOs and marketing leaders. This episode is the June 2026 edition of the Monthly Brief and focuses on a market splitting in two: AI is becoming the default infrastructure for how marketing gets made, even as the work - and the audiences - that win are the ones that feel most distinctly human. From Cannes to the courthouse to the checkout, the through-line is the same: the value of AI is in what it quietly enables, while trust, craft, and disclosure are becoming the real sources of advantage. Aby Varma and Matt Cyr explore the following topics: (a) At Cannes Lions, the platforms decided - but craft won the room: Meta (Brand Memory), Google (Gemini in Google Ads), TikTok (Symphony Agent), Amazon (Alexa+ Agentic Ads) and Canva (Grow 2.0) all made AI the default, and OpenAI showed up for the first time to declare it is "clearly in the advertising business now," with one in five ChatGPT queries carrying commercial intent. Yet the Grand Prix went to Apple TV and Coinbase for work shot entirely in-camera - no AI, no CGI.
Transcribed and scored by The B2B Podcast Index.
Speaker A: Welcome to the Marketing AI sparkcast, where AI meets modern marketing. Hosted by Abby Varma, a global leader in marketing, AI and innovation. Each episode brings you real conversations with leaders putting AI to work in strategy and execution. This episode is brought to you by Spark Novus and the Marketing AI Pulse community. Here's your host, Abarma.
Speaker B: Welcome to another episode of the Marketing AI Pulse monthly brief for June 2026. The Marketing AI Pulse is one of the fastest growing communities at the intersection of marketing and AI. If you are not a member of that, we'd love for you to join. You can learn more about that@marketingaipulse.com for today's episode, it is always a pleasure to welcome my Partner in crime, Mr. Matt Cyr from Loop. AI Matt, welcome back.
Speaker C: Abby. How are we today? Everything good?
Speaker B: Good, man. How's the summer been for you?
Speaker C: It's been good. It's been busy. We're, we got a lot going on, but it has been extremely hot here in Charleston, South Carolina. I think yesterday was 99 degrees without the, without the humidity. So probably about, about 110 here yesterday. Um, so obviously good weekend for some, for some yard work. So I got out there and just about dropped dead from the heat stroke. So all good?
Speaker B: Awesome. Awesome. Well, Atlanta has been equally high, but I've been very comfortable in my little basement dungeon where I'm recording this podcast. Um, but yeah, I think we have a packed podcast today. We have four exciting stories. So we're just going to do a quick table of contents for our four topics. So the first topic that we're going to talk about is Can Lions. So for those of you who are not familiar, Can Lions is the largest marketing and creativity advertising festival. It started in the mid-50s. It draws about 15,000 CMOs, agency leaders, brand execs, and they all head to the south of France every June to celebrate the best creative work on the planet and set the agenda where marketing is heading next. Lots of important announcements are typically made at, uh, this event, and this year was nothing different. As expected, one theme dominated Cannes Lions this year, which is everything AI. And there were two things that became very clear. So the first is the platforms have decided that AI is essentially going to be the default way of how marketing gets done. The second thing in a weird juxtaposition is the award winning work that got the most attention was deliberately, invisibly human. We're going to unpack that more. Matt, over to you for the second topic.
Speaker C: Great. Yeah. The topic that I want to talk about here at the Start is a recent study by bcg. The Boston Consulting group, um, this month released a study, um, as well as an article that really covered two different ends of the AI adoption spectrum for marketers. And I think you and I are both living this. But the data is kind of proving this out, which is that most CMOs across the world are saying that AI is really driving a transformation of their own roles, of their teams, of their expectations. But the data that they shared also shows that only about one in three marketers and CMOs have actually transformed significant parts of their organization with AI. Um, and that disconnect, I think, is a really important thing for marketers to hear and understand. This is something I see literally every week with our clients, folks who are really trying to bring AI into their organizations in a meaningful way, but in many cases struggling to make the move from experimentation to real transformation. Um, so really important and compelling study by bcg and I think shows where we are and where we're headed.
Speaker B: So New York just passed the first law in the country requiring ads to disclose when they're using AI generated people. They're called synthetic performers, digital humans that look and sound, uh, completely real, but don't exist. So as of June 9th this year, 2026, if you run any kind of ad in the state of New York and you don't label it, you can get fined.
Speaker C: My second topic for the day is another disconnect that we're seeing out in the market when it comes to AI. On the one hand, TechCrunch published a story last week or about a week and a half ago that said 60% of US consumers say that AI and brand messaging is a turn off. Yet on the other end of that spectrum, interestingly, um, visitors who are referred to a website via AI are much more likely to stick around and are much more likely to convert. So, bit of a disconnect there that we need to try and sort out.
Speaker B: So, unpacking at the Cannes, uh, Lions last week, which, from everything that I've read and seen seems like almost like a South by Southwest and in the south of France and people have bragging rights and whatever, but there was a lot.
Speaker C: You and I need to figure out how to get there next year. Abby, I think you and I in the south of France could be, could be a good time.
Speaker B: Let's do it, man. Let's do it. We gotta find one of those cabanas to go park ourselves in. But yeah, there was a lot of announcements and things like that. And one thing became very clear that AI is becoming the default way of all these AI marketing platforms and how things are going to get done. So I'm going to unpack a few things from what I compiled. So Meta launched something called Brain Memory, which ingests your existing library and learns about your brain identity and tone and generates new creative from what is already performing. So it sits inside a new end to end AI creative workspace, sees what works, generates. Well, you can test it all in kind of one place. Uh, so that's meta. Google has embedded now Gemini directly to Google Ads. So AI powered creative insights during campaign optimization, telling you which visuals to use, what is trending on YouTube and how to improve performance in real time. TikTok launched something called Symphony Agent where it's like agentic AI that reads your campaign goals, matches them to TikTok's trend data, identifies and briefs creators and scales content across markets. Amazon debuted Alexa Agentic Ads in beta. It's a new format where consumers can interact with and complete transactions directly through the ad. It's the first truly agentic ad product from a major platform. Canva announced grow 2.0. They had launched it earlier, but this is 2.0 where you can now create ads and then publish them to TikTok, LinkedIn and Meta and track performance all without leaving Canva. They ultra acquired this company called Magic Brief, which is an AI platform that analyzes what ad formats and content are performing the best, feeding those learnings into your creative. And of course OpenAI attended Ken for the first time ever and made a statement about they're clearly in the advertising business now, pitching ChatGPT as a working channel in highlighting the fact that one in five queries carry commercial intent are really originating from OpenAI. So you can see that there's a general trend for all of these platforms focused on advertising where they're trying to keep you in the platform and then uh, they're trying to use AI to reduce the friction for creation and optimization. And I think as this technology evolves my punches that there's going to be a lot of autonomous type advertising where you can identify your target audience, identify your budget, point it to your website, your existing assets and that thing and then let it run autonomously. Are we there yet? In a sort of. But I think this is just a matter of time. I'm seeing everything that I just rattle off. Meta, Google, TikTok, Amazon, Canva, all heading kind of in the, in the same direction. So clearly advertising, it's looking like it's going autonomous or headed in that direction. But you know, in a weird juxtaposition with AI and the human side of the equation is the awards that were announced were really celebrating the craft, the human craft. So Apple TV took the design Grand Prix for a shot entirely in camera using physical glass sculptures. No AI, no cgi. And the jury called it gloriously human made. Queen Base one film craft for a spot where sets, costumes and performers were all physically built to look like a video game entirely in camera. And like I said, both were kind of celebrated because they chose craft over technology. So the weird thing where AI is taking over and making advertising more autonomous, but at the same time the human creative outputs are being kind of celebrated. And what does this really mean for marketing folks? Right, so it really means that we're getting to a paradigm where AI is the default and not the experiment. The platforms are building AI, uh, into standard workflows, like all the things I told you, Brain Memory, Gemini and Google Ads, Symphony Agent and so on and so forth. They're not add ons, they're becoming the baseline. And some of these tools and capabilities are even coming to the entry level tools. So even if you're not on the Adobe platform, smaller teams are using tools like canva means that even smaller marketing teams without dedicated tech or media buying resources can now run fully AI assisted campaigns end to end, or so they claim. So we'll see how all this happens. And then ChatGPT, now that they're in advertising channel, you can't really ignore that. You have to have ChatGPT as a uh, channel strategy. And then I feel these agentic ads are collapsing the funnel. So they're not just driving awareness, you can transact within the ad itself. So the traditional funnel of awareness, consideration and conversion or essentially becoming one moment and the funnel is getting collapsed and it just needs some kind of rethinking along the way. And then finally when it comes to strategies around creators and AI, those two swim lanes are merging. And what do I mean by that means? Like platforms like TikTok and Meta are using AI for brands to help find creators, write briefs and really scale content. So it's becoming one workflow on the platform side. Now historically most marketing organizations have a separate team for those that run influencer marketing, separate team for paid media. And I think those two worlds are colliding because now you can do all those things within the platform. So it becomes way easier for brains to find creators and scale content right within the uh, within the platform. So what should CMOs do? So really three things. One is decide where humans lead and where AI executes, right, AI can handle volume, versioning, scaling, optimizing, so all operational decisions sounds like the tools are catching up where AI can help optimize those things. And when it comes to strategy or judgment or taste, that capability needs to be protected and essentially be focused on the, on the human side of it. And that really from a CMO standpoint, should be a very strategic way of approaching it. So that's number one. Number two, you can really treat your brand clarity as infrastructure. So like I was saying, pretty much every platform announce AI tools that will generate, publish and speak on your brand's behalf if you let it. But it would only be as good as the brand identity you feed them, right? So your positioning, your voice, your visual identity, if those things are not locked down, it's like garbage in, garbage out, right? AI uh, is going to scale that inconsistently and in like a really fast way, which you obviously don't want. So making sure that your brain guidelines and brand clarity needs to be really treated as like an infrastructure element so you can start feeding these things to AI in order to leverage some of those that operational gains. And number three is really, you know, can't ignore ChatGPT as an emerging channel. Like I mentioned, 20% of queries coming or carry commercial intent from OpenAI and it's too early in my opinion to see how this is going to play out. But CMOs who understand how their brand shows up in AI generated answers will be better positioned than those who don't. So that's the whole world of GEO and those things that we've discussed in the past. So a lot to unpack. Obviously a lot happened uh, at Cannes Lions. But Matt, did you read anything about it?
Speaker C: Cannes Lions was all over the place in the last week for sure and across all the different feeds. But it's interesting, I think this intersection of technology and humanity is something that to me is, I think we're just starting to get our minds around. I don't know if you saw the movie that's really blown up this summer called the Back Rooms, but really interesting movie. The kid who directed it made a point of saying that almost everything in that movie was done physically and that he really came out in a pretty strongly anti way against AI and using it as part of his craft except to do repetitive kinds of tasks. Um, and if you see that movie and where that, that trend came from when YouTube and Reddit, that's a very organic human feeling story and world. And so I think that intersection of human Creativity and technology is one that is just beginning to get uncovered and I think is fascinating. I'm not surprised that Cannes Lions is digging in on it. I think it's a super compelling topic that everybody's wrestling.
Speaker B: Perfect.
Speaker C: All right, I'm going to dive in. Abby. I've got a. My two topics today are about disconnects or, you know, two. Two stories where we're hearing two different story lines. The first one is about a research study in an article that was released by the Boston Consulting Group, also known as bcg. And they, like many other large scale consultancies and organizations, are starting to really study AI adoption and how it is being meaningfully adopted or not in particular in marketing organizations is the topic of this study. Um, the study that, that they did, they surveyed hundreds of CMOs all around the world and no surprise, 96% of them said that AI is driving end to end transformation of their function, of their teams, of the way that people are thinking about marketing and what they're expecting from marketing. But the reality is that only one in three of those same CMOs say that AI has actually transformed significant parts of their work in their organizations. Um, just 8% are running campaigns with multiple autonomous agents. And again, no surprise, 42% are using Genai to help individuals with one off tasks. And this tracks very much with what I see when I'm talking with clients, um, and other marketers out in the world, is that there's this real strong, um, disconnect between AI experimentation and adoption. And I think that transition from experimentation to adoption, I think is beginning. But the reality of the challenge of that, I think is sometimes catching up to people. Um, one other really interesting data point that they identified is about 31% of B2C CMOs who made deeper transformation are seeing measurable revenue impact. Um, so again, those folks that are really doubling down and paying attention to workflows and meaningfully adding AI into the core of what they're doing are showing benefit. But I think most other marketers are showing the opposite, which is that they're spending a lot of time, energy and money and not really seeing the value from that on the bottom line. So what this means for marketers, I think the gap between AI rhetoric and reality is really widening. I have heard this from so many people in, um, just the last couple of months. People are talking an awful lot about all the great work that's getting done with AI and probably Cannes Lions as an example of some of that. But the reality, uh, of the actual transfer and transition of the work is just simply not there yet. A lot of what I see is that the change and the challenge is around the human side of this, right? It's not just about the technology or in fact it's often not at all about the technology. It's about the humans and the change management involved in really moving from one way of doing work to another way of doing work. So I think marketers need to really start looking at this even more through a lens of the human change. Um, the anxiety that it's producing, the opportunities it's presenting, the training that's needed, all of those really important things. And the last thing that I would add here is around what CMOS should do about this. I would start honestly with an audit of AI maturity. This is not about aspiration, it's about reality and it's about what is actually happening in your organization. I've talked to CMOs many times who talk about all the different tools that they're implementing. And I'll, uh, ask, are those tools talking to one another? Are they bringing shared context and compounding knowledge? And they are almost to a person saying that those things are not happening. And so you're seeing a lot of one offs that are not really adding up to an awful lot of value, one plus one equaling two, definitely not three. So that audit is a really important starting point of what, uh, are we doing, what's working, what are we not doing, what should we be doing? I would say the second big thing to me, Abby, is stop equating tool access with transformation. We had a client tell us or ask us a couple of months ago what it would cost to give everyone in their 200 person organization access to both ChatGPT and to Cloud. And how much do you think that would cost for 200 person organization?
Speaker B: Oh gosh, a lot, A lot.
Speaker C: So about $240,000 to give everybody in the organization access to those two tools on an ongoing basis for a full year now, just working in those tools as isn't going to get you very far. You have to build systems and processes and workflows and training and all of those things around it. So the value is really not coming back to people for the expense that they're putting out there. The last thing I would say is that making AI transformation a leadership priority is enormously important. BCG talked about this in the report and really called out the fact that if this is just happening from a marketing operations lens or being driven solely from the ground up, you're not going to see the kind of value that ultimately is needed here. And so a really great study from bcg. We'll include the link in the show notes. But are you feeling and hearing similar things, Abby, when you're talking to folks? This disconnect between experimentation and implementation?
Speaker B: Oh, 100%. There's a lot of hype, to be honest. I think there's a fine line between optimism and hype, but certainly can't get away from the hype. But I think for a lot of marketing leaders, if it is not grounded in strategy, there's an expectation that using the tool equals roi and the reality is far from it. Right. You have to have a sound strategy. You got to understand your icp. You want to make sure you're looking at it through a point of view and a lens of the overall business strategy, your brand values, the creative identity, have some governance in place, have team trading and enablement and all those things, change management. So these are major pillars of any transformation. And just diving in straight to tech and expecting a really transformed org is just leaders being naive. And I think that recognition is dawning on people clearly, as the data shows that.
Speaker C: Yeah, absolutely. Yeah. Compelling stuff. And I think we're in a, uh, definitely in a big transitional phase here when it comes to AI adoption. So your second topic of the day is getting into something that I think a lot of us are hearing about and struggling with, which is when we see AI generated materials, advertisements and things like that, how do we know that they're real? What, what can you tell us?
Speaker B: Yeah, absolutely. So this is. Goes to the heart of governance, right? I mentioned that even when we were talking about K Lions. But this is, this is the law. So New York, the state of New York, just passed the first law in the country requiring ads to disclose when they use AI generated synthetic performers, AKA fake people, people that don't exist. So the law was signed by Governor Hochul back in December last year and it went into effect this month. And it's just one of those things where you're required to fully disclose the fact that you're using AI generated human beings, the obligation is on whoever is making the ad and not the platform running it. So that's super important. Right. So if you are creating the ad and you're pushing it through any of the ad platforms, it's not the ad platforms that are responsible for it. Uh, you are responsible for it as the ad, ah, creator. And the disclosure has to be conspicuous, whatever that means. It didn't go deep enough in my opinion, to define what is conspicuous. But that's the ask. And uh, it's $1,000 for your first violation, is $5,000 for everyone after that. So as you can imagine, it can add up really fast. And you're familiar with SAG aftra, which is a screen actors guild in the American Federation of Television Radio Artists. They back this law because actors are uh, watching their livelihoods get replaced by digital copies and AI and that stuff. And this law doesn't ban that. It just forces the brands to say that they're using synthetic actors. So I think it has big implications. And New York isn't the only state. So we have 13 states that already have disclosure laws for political ads. But New York is really the only one that is covering commercial advertising. Connecticut is coming in 2027. Massachusetts has a bill, but there is nothing finalized or a couple of other states. Nothing at the federal level just yet. I doubt it that with the current administration that has taken a stance, uh, more kind of a pro AI ah innovation stance. I don't really see this at the federal level. But what does this mean for marketers? So for marketers, obviously if you're running ads in the state of New York, whether you are creating those ads or your agencies are creating those ads and are using AI generated talent without disclosing it, you're on hook. I think more than the find, there's a reputational hit when a customer finds out that you used a fake human without telling them. And honestly my personal opinion is this is uh, even without the law, that was just weird. A lot of UGC user generated content where AI was used for UGC ads just kind of has run me the wrong way because then you were just having fake people claim that they have used your product and are endorsing it. So, so that's been weird to me. But obviously now we have a law in place in the state of New York. More states coming soon. And disclosure is a key part of marketing governance. Right. So I think if it is done right, it can flip this constraint into a trust play. Right. The same way we've all seen sponsored content. Labels went from like awkward labels in the beginning when they were launched to really expected and now everybody's adopting it in similar fashion. I think that conspicuous disclosure for AI AH ads is so essential. What should CMOs do? So I think that's a common theme that you and me have mentioned, that you gotta audit your tools that are being used again by your team and especially by our agency. A lot of times brands are not involved upfront in the agency Production process. They're really looking at outcomes. But I think you should really have a sense of what exactly what is the workflow, what's the tech stack being used in any of these ad production, creative, if AI is being used or not. I say this to a lot of brands that we work with and I believe in this, in the strategic but also responsible use of AI within marketing teams where you have to have some marketing governance, a marketing standard. Most marketing teams get handed out a uh, gigantic PDF from their IT or compliance people which has a lot of technical information. Not saying that they need to ignore that, but to me it doesn't have specific requirements pertaining to marketing. So this is a good trigger for you guys to really come up with a uh, formalized marketing governance document within your team to, to establish what are rules for input, what goes into AI, what are rules for output, what are obligations that is coming out of AI and then disclosures like this law. So that is something that we kind of believe in and I think it's going to help you because you got to get ahead of this patchwork which we are about to be hit with. So this is just New York. Other states are going to come up with something similar as well. And I think we're going to end up with a patchwork because I'm not sure like happens when there are state laws. The state laws can vary and I think having something overarching brand standard which would need to comply with the highest obligation was probably a good idea. But I think this is just an area that you can't ignore and this is currently hot, inactive. Right. So Matt, are you seeing a lot of awareness from a uh, disclosure or marketing governance standpoint with the folks that you work with?
Speaker C: To some degree, yes. But what's been interesting actually to me is the advertising environment that I'm experiencing. So I live in um, South Carolina and have noticed a couple of things recently. There's one ambulance chasing lawyer who is using um, AI for his entire advertising. So you'll, you can tell when you see the ad that the all the characters are AI generated. They look quite real, but they're all AI generated and the entire ad has been created by AI. But what's more interesting to me is that of course we've just gone through um, a, an election season and a lot of elections down here in South Carolina. Um, I noticed several campaign ads that were AI generated that showed the candidates that were being attacked in these attack ads, um, that were clearly AI generated. So actual human beings to your point who were included in these advertisements where negative things were being said about them. Um, and that was made it look as if they were in the advertisement itself. Um, and there was no disclosure. To your point, there was no disclosure in any of these ads that said this person was AI generated. South Carolina is obviously much more conservative than Connecticut or New York or Massachusetts. So I don't expect that we're going to have a similar type of set of regulations here. But I think it's really challenging or going to become increasingly challenging for people to be able to really separate the two because I know what I'm looking for and I was able to tell that they were AI, uh, generated. But there's going to be other folks who simply will not be able to tell the difference. Your point about some baseline level of disclosure and engagement I think is really important in that patchwork that you described is certainly accurate. So can be really interesting to see where this goes.
Speaker B: Yeah, I mean seeing is believing was a thing and I think it's not going to be a thing anymore. It isn't already. Right. Like when I'm doom scrolling at night on Instagram and some of the things I'm watching, I know that it's not real, it looks very real. But because I'm immersed in this world of marketing and AI, I can spot some telltale signs. But I don't know if that's the same level of recognition or granularity without those disclosures that layperson would have. The AI video avatar business is getting very good to where you can't really tell if this is a real person or not. So definitely something to watch. But man, the next story is about really consumers starting to hate on AI marketing in the the same spirit.
Speaker C: Or this next one is. I mentioned earlier my two stories are about contradictions. And this is another example of that because, um, two stories, two studies landed within about 24 hours of each other earlier this month and they each tell a different side of the AI and marketing story. And I think it's an interesting thing to try to pull these two apart. So the first one was a study done by WordPress, the content management system company. They did a survey of two with 2,000 respondents and including 800 enterprise CMOs. And what they found was that 60% of US consumers say that brands using the word, the phrase AI in their messaging is a turn off. I think for a lot of brands it's just become let's stick AI on there and hope that people think that we're staying on top of the trends. Um, 86% of the people that responded don't fully trust AI uh content. Back to the conversation we were just having and still want to find the original source. 42% trust AI uh generated answers without attribution. Less than, get this, airline fees or medical bills, two of the least trustworthy things in the world. Three percent say Internet feels less human than it did 10 years ago. And I would say even much less than 10 years ago. I think we all feel some of that. So on the one hand, on the one side you have people feeling very distrustful of and disliking AI, um, advertising, AI being used as a phrase to describe the advert, the products, et cetera. But on the other end of the spectrum you have a really interesting study that Adobe did, which is actually not a study, it's actually an analytics report, um, that was completed in May of this year looking at retail shopping data across the web. Interestingly, AI traffic to retail websites was up 138% year over year. So no surprise, right? I think we're all seeing the Google AI summaries and oftentimes those are either answering our questions right in the space there or directing us to a very specific website so that the nature of search has changed. But 138% increase in traffic year over year is significant. They also found though, uh, that AI referred shoppers converted 54% better than non AI referred shoppers and AI referred shoppers spent 53% more time browsing than non AI referred shoppers. So you have the folks on the one hand saying hey, I really don't like AI in my advertising, I don't trust it, I don't want to hear about it. But on the other hand in actual usage it's becoming a real driver of very strong engagement. Uh, so from marketing perspective marketers need to understand that using AI powered or AI generated or AI fueled or whatever, you know, AI phrase um, you want to use is really, is really a turn off to people. It's a warning label that's going to make people turn their backs on your brand. So I would suggest don't use it. But it's becoming a really strong driver of top of funnel activity. I think we know this and you mentioned a minute ago about the funnel really compressing, um, it's a different kind of consumer and a different kind of optimization though. Um, and I think marketers need to really be aware of um, the kind of intent that is being suggested someone is clicking through from an AI summary and then I think the last thing that I would mention about what this means is that the consumer relationship with AI is really going in two different directions at once. People are becoming increasingly comfortable using it as a way to shop and even make decisions for them if they're using AI agents to help them. Um, but on the other hand they're becoming in some ways allergic to brands using AI on them. It was interesting, one of my daughters told me the other day that you can now turn off AI when you're doing a web search. Um, I had not heard of that before, but apparently you can get an old school Google search that's not AI supported. I'm not sure how true that actually is in these day, in this day, but that's what there's a little button that told us she could do. The last thing I would say here is we always end with what should CMOs do about this? Audit your AI forward messaging, strip out the jargon. If you're using AI powered, I would be really clear about whether that's necessary and if it's not, take it out. Investing in AI Discoverability is a series of acquisition channel I think is important. You and I have talked a lot here about AI search and geo and how to use AI to your benefit. And there's a lot of value there. But make sure that you're using it in the right way. And then the last thing I would say is building trust through transparency, not AI theater I think is super important. I think people who are waving their hands and saying, oh, we're AI1, it's often not true. There's an awful lot of vaporware out there. But I think too increasingly you're seeing pushback from consumers that they don't want to believe, that they don't want to see it, that they don't trust it and they'd prefer not to have it in their market. Um, Abby, you spent a lot of time talking with both sides of this coin, the marketers themselves and of course the consumers of the marketing. Does this track for you? Are you seeing a bit of a two ended story here?
Speaker B: Yeah, I mean the way I process that is that I think people like the efficiency part of AI. Like they're using it for search, using it for things that's going to make their life easier, help them write and that sort of thing, agentic stuff again, given a uh, command and let go do things for you. So people love that part of it. But the authentic part, making sure that C is believing those things, video ads, characters and that stuff would be areas where I think people almost like mistrust it because they're not entirely sure. And I mean, you and me are again, deeply steeped in this industry, especially when it comes to Martech tools where it's like AI powered and those sort of things. There is a lot of AI washing happening there. Right. A lot of these Martech providers feel that without AI, they're falling behind. So I think that's where marketers and CMOs should really be careful about. To your point, drop jargon, if it doesn't really truly have capability. And honestly, I feel when it comes to software, there's going to be a time where that is going to be the norm. Like the AI power is not going to be a thing, just like SaaS. I know we still use the word SaaS, but that back in the day when SaaS, uh, came out and everything was like, hey, we're a SaaS platform and that thing now, that is the predominant way that software is really delivered. Right. There is obviously exceptions of rules and thinking that in the world of AI, again, all these things, all the software and products that we consume is all going to be kind of AI driven, where it is not going to be, uh, a novelty. So I think people appreciate the efficiency part, but distrust the, uh, almost like that visual part of it. So it's a kind of a interesting way into human psychology where you want to be able to trust what you're seeing, but when it comes to efficiency. Absolutely. Let technology make your life easier.
Speaker C: Yeah, absolutely.
Speaker B: Awesome, man. Well, that wraps up our AI Powered podcast. I'm kidding. Now this was, this was awesome. Thank you very much. Some really insightful stuff to our listeners. Thank you very much for joining in. You can follow Matt and me on LinkedIn. We'd love to hear from you, but until next time, have a great one. Matt. Thank you.
Speaker C: Thanks, Seth. Good to see you.
Speaker B: See you.
Speaker A: Thanks for listening. Big thanks to Spark, Novus and the Marketing AI Pulse community. You can join the community at, uh, marketingai pulse.com.
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