Shared uncertainties

Regardless of whether a brand chooses to invest in AI, Web3, or both, either space raises similar uncertainties that could affect how their technologies evolve.

Regulation is one area. At Web3, there has yet to be any significant push at the federal level on how NFTs and cryptocurrencies should be considered under the law. While a number of cases have emerged in areas such as insider trading and fraud, an established precedent remains lacking. The way the tiles fall will no doubt affect how brands interact with assets and the space in general.

AI is also an industry that needs regulation. The generative bots font has raised copyright concerns; For example, when DALL-E slightly manipulates a famous painting, is that a violation of the painting’s copyright? Or, since the bot is trained on lots of data, what rights does that data have over the bot’s output?

Earlier this month, Getty Images sued IA image generator Stable Diffusion over this very issue, alleging that the platform illegally extracted millions of images from its site. It is a similar notion that has been raised with respect to NFT art and ownership of its underlying intellectual property.

Web3 and AI are also doomed due to their reliance on massive amounts of computing power. Web3 relies on arduous processes like crypto mining, while generative AI can only get better through larger models and data sets. Both systems inevitably result in high carbon emissions.

Related: Why are brands cutting back on sustainability marketing?

But while Web3’s footprint is largely public due to its reliance on blockchain, AI’s can only be estimated, as centralized companies don’t have to disclose that information. This will be a major issue for sustainable advertising in 2023, Mekanism’s MacDonald said.

As both Web3 and AI work to resolve their issues, brands will inevitably experience collateral damage in the form of a lack of brand safety. This, of course, is the double-edged sword of activating new technologies. But for marketers, the benefits could very well outweigh the potential consequences. Deciding which rewards are worth seeking out will be the next step in brand strategies.