Observed Signal · Sep 30, 2026 · Market Signal · Source: GWI · Impact: 3/5
6 consumer trends to watch in 2025
New research from GWI reveals the real-world consequences of unchecked AI to the advertising and marketing sector; from costly mistakes to customer complaints and lasting reputational damage.
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Ad Industry Faces AI Labeling Dilemma
The ad industry is wrestling with how and when to disclose AI usage in marketing as public trust falls and regulators move faster than trade bodies. Research cited by the briefing finds AI disclosure can cut ad effectiveness by up to 31.5%, forcing marketers to weigh honesty against performance loss. Trade groups including the World Federation of Advertisers (WFA) and the IAB recommend threshold-based disclosure—label when AI materially shapes commercial claims, with synthetic humans and digital twins as clear triggers. The IAB also requires C2PA metadata to accompany ads so platforms (Meta, TikTok, YouTube) can apply labels. Regulatory deadlines loom: EU AI transparency rules have an August compliance date and New York requires disclosure of AI-generated humans from June. Some brands (Aerie, Coterie, Le Creuset) are publicly committing to no-AI creative policies.
Agencies' Future: Advertising Value and AI Test Trust
Larissa Pohl, president of the GWA, published a Talking‑Heads column in HORIZONT on 2026‑06‑23 arguing that the communications industry is unfairly under pressure amid rising AI tool adoption and a stagnant economy. Using concrete examples she defends the demonstrable value of advertising and warns that AI (exemplified by ChatGPT) will act as a stress test for consumer trust in marketing. The piece is an opinion column framing AI as a challenge to agencies' trust relationships with consumers rather than a reason to devalue advertising.
Study: AI Ad Environments Harm Brand Perception
A recent study titled "Media Quality in the Age of AI" by measurement firm Double Verify finds that advertising placed alongside AI-generated content — described in the report as "AI Slop" — can negatively affect brand perception. The article, published by HORIZONT on 2026-08-14 and authored by Svenja Fennel, notes that AI-generated content is becoming ubiquitous online while consumer enthusiasm for AI in Germany is declining. The study highlights media-quality and brand-safety risks in environments dominated by synthetic content, raising implications for brand planning, contextual targeting, and measurement strategies in digital advertising.
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