Self-regulation or formal oversight? Brand leaders weigh in on advertising in the age of AI

Goa: As generative AI redefines the creative and commercial fabric of marketing, questions around regulation, authenticity, and consumer protection are taking centre stage. 

At a recent industry forum at Goafest 2025, senior leaders from Voltas, Hindustan Unilever Limited (HUL), MakeMyTrip, and Swiggy discussed the evolving role of regulation in advertising—and whether current norms are keeping pace with the industry’s rapid transformation.

While the potential of AI is widely celebrated, the conversation quickly turned to a pressing concern: can self-regulation ensure responsible innovation, or is the industry in urgent need of stronger frameworks?

Arjun Choudhary, Vice President at Swiggy India, struck a pragmatic tone. “There’s a lot of grey area when it comes to content authenticity,” he noted. 

Choudhary pointed out that AI-generated content is already widespread and that while India currently leans on a self-regulation model, issues like misrepresentation and unauthorised data usage are beginning to surface. 

“We’ve seen our own content reused in different contexts or inadvertently used in someone else’s training data. These are clear signs that regulation, in some form, is not far off,” he said. 

He stressed the importance of ethical content creation and transparent communication, particularly on consumer-facing platforms. 

He said, “We consciously avoid allowing our restaurant partners to use AI-generated food imagery. Consumers need to see what they’re actually going to eat. There’s a big difference between enhancing content and misleading people.”

On whether AI-generated ads should carry disclaimers, the panel was divided. While there was consensus that AI can be a powerful creative enabler - especially in fast-paced digital campaigns - clarity around its use is becoming increasingly important.

Pragya Bijalwan, Chief Marketing Officer, Voltas Limited, acknowledged that AI allows brands to react faster and connect more intimately with audiences. 

Citing a campaign where the long-standing brand mascot “Murthy” delivered personalised messages to channel partners, she said the creative had a near 98% click-through rate. “People actually believed Moorthy was talking to them. That’s the kind of personalisation AI can deliver,” she shared. 

However, she also acknowledged that transparency matters - especially when content could blur the line between fiction and reality. “Labelling AI-generated content in marketing could help preserve trust. At the same time, what matters most is the intent behind its use,” she stated. 

Tejas Apte, Head of Media and Digital Marketing at HUL (Hindustan Unilever Limited), addressed India’s upcoming Data Protection law - the Digital Personal Data Protection (DPDP) Act - and its intersection with AI. 

While the Act itself is largely focused on consumer data privacy, Apte clarified that any use of personal data for targeting or customisation must remain consent-based.

“As long as there’s compliance and consumer consent, AI can only enhance the brand experience. But whether or not AI is involved, the responsibility to protect user data doesn’t change. It's not about the tool, it's about how you use it,” he said. 

He also noted that generative AI is enabling a dramatic shift in how marketing functions operate internally. “Today, a brand manager at HUL can draft a campaign idea, walk down to the in-house creative studio, and within 15 minutes, generate and pre-test a digital asset without involving external production teams.” 

That kind of speed, he pointed out, makes regulation and internal governance even more critical.

Sanket Tulangekar, Director at MakeMyTrip, emphasised the need for rigorous evaluation of AI-generated content before public release. 

“There are three pillars we work with - accuracy, bias, and evaluation. AI tools can generate content quickly, but if that content isn’t moderated or tested, it can compromise both brand and consumer trust.”

He cited MakeMyTrip’s in-house AI assistant Myra, which uses natural language processing to summarise reviews and recommend properties. “Before Myra communicates anything to users, it goes through a red-teaming process to ensure data security and content accuracy. That’s the kind of discipline brands need if they want to use AI responsibly at scale.”

Tulangekar also pointed out that generative AI systems must be treated with the same scrutiny as editorial content. “It’s not just about what you can generate, it’s about what you should generate, and whether it reflects well on your brand.”

As AI-driven advertising becomes more immersive, hyper-personalised, and efficient, the call for guardrails is growing louder. While some, like Bijalwan, believe that clear internal frameworks and ethical use can suffice, others are more cautious.

Choudhary warned that without stronger guidelines, the industry risks misusing consumer data or eroding trust. “It’s fluid right now,” he said, “but regulation will come, and it should. The question is whether we shape it proactively or wait to be forced into compliance.”

Apte, meanwhile, struck a balanced note. “Marketers today have more tools than ever before, but also more responsibility. With power comes accountability, especially when the line between real and generated gets blurry.”

As the conversation got close to culmination, the panellists agreed that industry collaboration, transparency, and a user-first mindset will be critical in determining how AI’s power is channelled. 

Whether the future of advertising is regulated by governments or steered by self-regulation, one thing is clear: brands that choose integrity alongside innovation will lead the way.