The advertising landscape in India is undergoing a dramatic transformation, fueled by the rapid adoption of artificial intelligence (AI). Brands are increasingly leveraging generative AI tools like Gemini and ChatGPT to streamline ad production and cut costs. This surge in AI-driven advertising, however, is raising concerns about brand dilution and the potential for creative homogenization.
Indian brands are rapidly integrating AI into their advertising strategies. According to recent research, a significant 81% of Indian consumers expect brands to adopt AI by the end of 2024, the highest in the Asia-Pacific region. Currently, 66% of Indian brands are already utilizing AI tools, with another 26% actively experimenting with them. This widespread embrace of AI signifies a major shift in the industry, with brands recognizing the potential for faster, more affordable, and high-quality campaigns.
AI offers compelling advantages, including reduced production costs and quicker turnaround times. Some companies have replaced expensive ad shoots with AI-generated commercials, slashing production costs from ₹50 lakh to as low as ₹2,000. AI-led campaigns can potentially reduce costs from ₹50-60 lakhs to ₹8-12 lakhs, though savings are often offset by costs in prompt engineering, voice licensing and human quality assurance. Tata Gluco+ , for example, reduced campaign turnaround time by over 70% using AI tools to deliver regional variations within a week.
However, the rapid influx of AI in advertising is not without its challenges. Industry experts are warning that the pursuit of speed and cost-efficiency could compromise brand authenticity and lead to a convergence of creative styles. With machines generating tone and style, the risk of deviating from established brand language is high, especially for legacy brands communicating with younger demographics. There are also concerns that models trained on vast amounts of internet data may inadvertently incorporate copyrighted material, raising intellectual property and copyright risks. Moreover, as AI deepfakes and avatars become more prevalent, brands must prioritize transparency and disclosures to maintain consumer trust.
A recent study highlights a critical gap between AI adoption and confidence in its effective use. While 72% of Indian marketers use AI tools across some projects and 79% plan to increase their use in the next year, only 46% feel fully confident in their team's ability to deploy AI effectively against campaign KPIs. A significant 69% of Indian marketers cite a lack of expertise and training as their biggest barrier. This lack of AI literacy can lead to reliance on basic tools, rather than more advanced systems capable of predictive insights, dynamic media optimization, and automated creative testing.
As AI continues to reshape the advertising landscape in India, brands must strike a balance between leveraging its potential and safeguarding their unique identities. While AI offers undeniable benefits in terms of speed and cost-effectiveness, it is crucial to address the ethical, legal, and creative complexities that arise. Investing in training and expertise, prioritizing transparency, and ensuring responsible AI use will be essential for brands to navigate this new era of advertising and maintain a strong, authentic voice in the market.
