The good news is that NSFW AI has a lot to offer businesses, both positive and negative. The most obvious of those is related to brand safety. By 2023, a quarter of advertisers had unintentionally placed their ads next to offensive content that raised brand safety concerns. The new placements not only damage consumer trust but could result in a 15% loss of revenue because customers turn away from brands tied to controversial content.
This is a large scale cost issue. Here are a few stats to back this up: Global spend on digital advertising is expected to top $526 billion by 2024, and advertisers currently jettison billions each year at the wall. But the advent of NSFW AI has compelled businesses to shell out as much as 10% (or more) of their advertising budgets for brand safety triggers like sophisticated AI scanners that are programmed to identify pretty near an ad placement and keep it away. Despite their efficacy, these tools raise advertising costs substantially and therefore reduce overall profit.
NSFW AI players are interesting, but also risky — as a major incident of 2022 demonstrated. A household-name refreshment provider, for example, hit a PR snag when its commercials were lined up against AI-generated porn by on social. Within a week, shares dropped by 20%, showing just how serious AI mistakes can be for advertisers. In anycase, cases like these underscores the importance for deligent content moderation systems that are able to differentiate right type of contents from wrong ones.
AI could be dangerous if not well-managed," said Elon Musk, who has repeatedly warned about the risks of AI. His remark echos a common feeling throughout the industry that while AI, like NSFW AI has great potential to provide advertisers with powerful system tools it also poses an enormous risk if not managed correctly. Brands will have to wear the armband of efficiency but still face losing their brand.
NSFW AI impacts the effectiveness and targeting of digital adsIn addition to brand safety, NSFW AI affects ad efficiency and targeting Advertisers can now target ads using AI-driven algorithms that analyze user behavior 30% faster than what traditional ways provide. HOWEVE Advertisers are turning to AI companies that specialize in content filtering tools, which can decrease instances of inappropriate ad placements by up to 50%, but this is still a risk for brands and advertisers alike. While these are improvements, the price of getting such systems in place can still be prohibitively expensive especially for smaller businesses.
Legality is key, and the legal landscape surrounding NSFW AI impacts advertisers. Introduced in 2021, a fresh guideline within the European Union now calls for systems to be on top of produced articles by AI platforms — and even ads. These regulations stipulate that businesses must show they have “undertaken reasonable measures” to prevent their use of AI for advertising being abusive. Failure to comply may generate a fin up to€10 million, or in the case of an undertaking, 2% of its total global annual revenue. With this legal framework came increased investigation and higher compliance costs for advertisers targeting Europe.
NSFW AI has various knock-on effects for advertisers, from financial and legal impact to the need to protect brand reputation. Even the better-targeted efficiencies of AI can backfire, so these are elemental risks that we need to be carefully managing. As nsfw ai remains an ever-moving target, the changing tides will put pressure on advertisers that can drive unexpected (and unwelcome) traffic their way; and so naturally this subject is poised to become a key focal point in our evolving ad tech landscape.