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Legal Issues Surround AI Use In Advertising

By Jonathan Bick
June 01, 2025

Advertising is increasingly targeted at specific consumers. Targeted advertising depends upon data about consumers that customizes the advertisement that consumers receive. AI use in advertising targets results in legal difficulties, primarily unlawful discrimination and privacy violations.

AI is increasingly important for internet advertisers. AI assisted internet advertising effectiveness has been proven as early as 2019. Automated software tools including AI are involved in most advertising purchases, over 90% by one estimate. (See, Hairong Li, “Artificial Intelligence and Advertising,” 48 J. ADVERT. 333).

AI algorithms, if not properly monitored, can perpetuate harmful stereotypes or discriminate against certain groups. Additionally, data privacy and security are major concerns, as AI heavily relies on consumer data for personalized experiences. There are also ethical questions about the use of AI to create content, especially in terms of intellectual property and the potential for generating harmful or misleading ads.

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