Are Small Businesses Taking A Gamble Using Generative AI For Their Marketing?

Whether we like it or not, there’s no getting away from AI. While many feel that it is a positive tool as a source of information, there is a growing backlash against its use, especially when it comes to Generative AI. So why is it that so many small businesses are still making use of AI to assist with their creative needs, and is it doing them more harm than good?

AI – The Pros And Cons

Before I look at AI from a business perspective, you first need to look at the usage of the technology itself. As I said, many do feel that it has a positive impact. Tools like X’s Grok are used frequently by users as a means of verifying information on the platform, and Google’s own Gemini assists its search engine providing a summary of pages during searches, citing sources to enable users to find results more rapidly.

In contrast, Generative AI has caused issues in the creative industry. As this creates content based on the work of others through data scraping – analysing material found across the internet – it has been accused, quite rightly, of digital plagiarism. Artists, writers, musicians, filmmakers and others in the creative field have seen their works used without permission or compensation to create derivative works.

Then there is the environmental impact. It is acknowledged that all forms of AI need vast amounts of natural resources to function. Data centres are being constructed across the globe, each requiring huge amounts of power to operate, and equally large amounts of water to keep them cooled so they can function safely. While we should be looking to find ways to be as energy efficient as possible as a planet or find renewable sources of energy, data centres simply make no sense.

However, away from the environmental impact and copyright implications, misuse of the technology is also worrying. The progress seen in the learning algorithms used by many AI tools have many in the industry worried and in fact there are now such grave concerns regarding the rate at which AI is developing that even the industry itself is calling for tougher regulations to be introduced.

The Business Case

So shifting focus back towards Generative AI, why do so many small businesses choose to make use of it and does it do them more harm than good? The first argument often used is that of cost. I’ve often seen that businesses can’t afford to pay for designers or artists to create advertising materials or flyers for their businesses. Certainly in this current economic climate I can understand how many might feel that way, but when expecting customers to invest in their company (especially ones offering a service to their local community), shouldn’t they be doing the same to other small businesses in the design trade?

For those who genuinely feel that they can’t afford even a small fee – which is often the case for startups – they feel that the use of Generative AI will give them promotional material that makes their business stand out or look professional. However even a “homemade” flyer using most off-the-shelf PC art packages can convey what a business offers, with genuine photographs or freely available stock images that are more “genuine”. Or worst case scenario, most local colleges and universities have design courses where students may be able to help if approached.

The Backlash

With an understanding of why, just what is the objection to its use? For most people, the use of Generative AI in marketing material strips a business of any original identity that it might have. Even a casual glance on social media will see pages flooded with adverts that look almost identical apart from the business name and location being changed. When colour schemes, fonts, layouts and even images get repeated across countless adverts they all blend into one another and as a consumer you genuinely can’t tell who is advertising what. The only thing that you do know for certain is that no effort has gone into the marketing and that nothing in any of the photos is real.

Generative AI is also prone to mistakes, either when attempting to create human anatomy or fine details, especially anything that involves writing. Not only do these mistakes make images look unprofessional but as no human has been involved in their creation, there is no way to ask for errors to be corrected by the design team as there isn’t one.

Self Replicating Woes

We’re now finding something else interesting that’s happening with these flyers and adverts as well. By the very nature of Generative AI, these errors and repetitive nature of the advertising are becoming increasing apparent the more people are using it. As I mentioned at the start, the entire output of Generative AI is based on the work of others, generally without permission or license, but in the case of all of these advertisements and flyers the various AI tools are now using existing AI generated images as reference sources when creating these flyers. So in essence, they are copying their own output, adding to the increased repetition spreading the same identical content even further.

Illusion Vs Reality

On a more serious note, Generative AI can lead to potential issues for businesses, especially those in the hospitality sector. We’ve all seen AI generated adverts on social media for food outlets and not only do they seem to be offering the same type of menus, but the “food” being offered looks somewhat suspicious. Burgers with unnaturally crinkly lettuce, tomatoes that seem to be as large as the burger buns holding them, café menus showing plates of food with single food items taking up half a plate… the list of bizarre menu items being showcased is endless.

But what happens when a customer visits any of these establishments expecting to receive what is being advertised? We all know that restaurants like McDonalds, Burger King, KFC and most takeaway outlets have used staged photos to make their meals look more appetising than they actually are – we’ve come to expect that – but using AI to create images of food that simply doesn’t and can’t exist takes this deception to another level. Frankly, taking at any of these adverts at face value as a consumer is taking a huge gamble on what you’re actually going to receive and you’ve got more chance of success winning playing texas holdem poker than you have getting what you order from these places!

The consequences for businesses is that customers could potentially ask for refunds if the the food they receive doesn’t resemble what has been advertised and this is a genuine risk to businesses. Or even worse, legal action could be taken against those businesses for false advertising.

The Write Stuff

But it’s not just physical retail premises that have fallen foul of this backlash against Generative AI. Sites like Amazon have been flooded with books created entirely by AI and the ease at which someone can now self-publish on the platform has made this all the more prevalent. Whether it’s fiction or non-fiction it has become a serious issue for both readers and serious authors alike.

What is fascinating is that readers – especially those who are fans of the science fiction and fantasy genres – are starting to take a stance against authors who have made the decision to use Generate AI to create the covers for their works. Even when the books themselves have been authored completely by a human, the use of AI for the front cover has created a layer of mistrust between the author and the reader to the extent that books are being avoided completely.

Whether it’s because of a shortfall in creative ability, a lack of contacts in the art world or simply a desire to save money on hiring someone specifically to provide the cover, this is having a negative impact on sales that many writers can’t afford to lose.

Conclusion

Whether it’s down to cost saving or a lack of creative ability you have to empathise with the situation many businesses find themselves in in an ever competitive world with the increasing financial pressures that are placed upon them every day. But it’s clear that relying on Generative AI isn’t the solution that they believe it to be. Taking what appears to be the easy option may seem like good business sense, but as an increasing number of customers are avoiding businesses that are turning to AI then maybe these entrepreneurs need to realise that now more than ever that their business will reap the benefit of a human touch to their marketing.

Main photo by ThisIsEngineering
Additional Photo by Pixabay
About Simon Plumbe 239 Articles
Husband, father and lifelong geek. Originally from the West Midlands, now spending my days in South Wales with my family and a house full of animals. Passionate about video games, especially retro gaming, the Commodore 64 and PlayStation Vita. Love pro wrestling, sci-fi and I'm an animal lover and vegetarian. Enjoyed this and my other articles? Why not buy me a coffee: http://ko-fi.com/simonplumbe

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