Artificial intelligence is reshaping the Indian advertising landscape, driving hyper-personalisation, creative automation, and campaign efficiency at an unprecedented scale. But even as brands leverage AI’s potential, industry leaders are calling for caution, transparency, and responsible use, according to the ADNext report published by ASCI in partnership with Parallel.

The report highlights that digital-native sectors are leading the adoption of AI, while traditional industries are beginning to integrate AI through creative applications. A Statista survey cited in the report shows that 42% of Indian marketers are still experimenting with AI adoption, and just over 9% have fully integrated AI into their marketing strategies.

One of the key benefits of AI in advertising is scale. Mondelez India, for instance, created half a million AI-powered personalised animated videos for its Silk Valentine’s Day campaign. “That’s the power and scale of Gen AI from a consumer engagement standpoint,” said Vednarayan Sirdeshpande, Director – Consumer Digital at Mondelez India.

Beyond efficiency, AI is transforming creativity. “The creative process will be crucial in developing advertising. AI can do what it’s told, but the understanding of empathy, sensitivity, and human insight is where human intervention remains critical,” Sirdeshpande added.

However, trust and safety concerns loom large. The report cites a Salesforce study where 66% of marketers globally believe human oversight is essential when integrating generative AI. Mohan Jayaraman, Partner at Bain & Company, echoed this caution: “We’ve been a lot more cautious… maybe it comes from seeing a lot of hype cycles with tech advancements where it’s not played out as much as we thought.”

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The report also underscores India’s unique position in AI adoption. According to EY data referenced in the report, 48% of Indian consumers trust AI-generated promotional content, compared to just 23% globally. Additionally, 82% of Indian consumers are open to AI-generated purchasing recommendations.

Despite this openness, experts stress the need for transparency. “Disclosure labels in generative AI content ensure transparency… but they must be contextual,” said Bibhav Pradhan, Legal Lead at Hindustan Unilever.

The report concludes that while AI presents immense opportunities for scale and efficiency, brands must focus on building trust, educating consumers, and establishing robust governance frameworks to ensure AI adoption remains responsible and consumer-centric.