# The Challenge of Advertising in the Era of AI: Growth or Risk for Businesses?
The evolution of artificial intelligence (AI) has transformed various aspects of modern business, especially in advertising. However, as evidenced by the recent conflict between independent publisher Finji and TikTok, this transformation does not come without significant challenges.
The Finji and TikTok Case: A Brief Context
Rebekah Saltsman, CEO of Finji, an independent video game publisher, has highlighted a critical issue: TikTok, utilizing AI, has allegedly generated offensive ads featuring Finji’s characters without their consent. This scenario not only raises ethical questions but also poses significant financial implications for the companies involved.
Finji's situation exemplifies the tensions that can arise when tech platforms use AI to automate processes without adequate oversight. In this case, the lack of control over how a company's creative assets are utilized can impact its reputation and, ultimately, its financial viability.
Financial Architecture and Sustainable Growth
In the business world, sustainable growth is key. Companies that primarily rely on their customers for funding have a more solid and resilient foundation. However, when growth strategies excessively depend on emerging technologies like AI, without thorough financial analysis, they can lead to significant risks.
Platforms like TikTok, which are experiencing rapid growth, often turn to AI to optimize their operations. While this can reduce costs in the short term, it may also lead to issues with rights management and quality control, ultimately eroding trust among customers and business partners.
The Financial Impact of Automated Advertising
AI-driven automated advertising promises efficiency and massive reach. However, it is crucial to evaluate how these technologies integrate into a company's financial structure. A lack of transparency and control can lead to situations where, as in Finji's case, reputational costs outweigh financial benefits.
A cost-benefit analysis is essential. Companies need to assess whether the implementation of AI in advertising genuinely improves profit margins. If the technology is not aligned with a customer-centered growth strategy, it could end up being more of a liability than an asset.
Strategies to Mitigate Financial Risks
To mitigate the risks associated with using AI in advertising, companies should adopt several strategies:
1. Control and Oversight: Implement monitoring systems to ensure that AI operates within ethical and legal boundaries.
2. Supplier Evaluation: Carefully select technology platforms and ensure they share the same values and quality standards.
3. Transparency with Customers: Clearly communicate how their data and creative assets are used, strengthening trust.
4. Investment in Education: Train internal teams on the risks and opportunities of AI to ensure responsible implementation.
The Key: Sustainable Financing
Ultimately, the true validation of any business strategy, including advertising, is its ability to generate real income through sustainable financing, that is, through customers. Companies relying on AI must remember that true growth is measured by customer loyalty and sustainable profitability, not just short-term metrics.
In summary, as a financial strategist, my recommendation is clear: companies must ensure that any technology, including AI, is integrated coherently within a robust financial structure that prioritizes real and sustainable value for the customer.
