Crypto marketing could be in for a tricky period as generative artificial intelligence (AI) tools become more powerful. Freelancers behind graphic design and copywriting will be the ones in immediate danger unless they adapt, suggests a recent study.
However, the study also suggests that they may still have a role to play. Regulators in major economies have strict rules on the language in financial marketing material.
Challenges in AI Crypto Marketing
Despite its plaudits, AI could create advertisements that violate investor ethics, endanger assets with incorrect information, or have inadequate disclosures. Generated material could also inherit subtle discriminatory or predatory practices from previous marketing campaigns.
At a time when the industry is facing reputational scars from money laundering and fraud, misguided AI marketing could cause users to lose more faith in the industry. Recently, authorities in Hong Kong started investigating an exchange with prominent adverts for fraud and harming consumers. FTX customers are trying to recoup funds from FTX promoters, who were allegedly partly responsible for their losses when the exchange collapsed.
Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell
But AI tools are set to become even more powerful. OpenAI’s Sam Altman recently announced the release of its fifth AI model at a recent conference, which suggests that AI-generated promotions will become more commonplace.
While it may be tempting to task crypto marketing to AI, studies have shown it is more effective at less specialized tasks. It is when the tasks require an understanding of the context of a query that human ability is superior. Subtle nuances in interpreting questions often enable human beings to give better answers.
Regulators Tighten Crypto Screws
But crypto marketing professionals and the industry at large may not need to fear false AI crypto marketing. Regulators, having witnessed the harm of irresponsible advertising, have tightened the parameters in which crypto companies can operate.
Read more: 13 Best Crypto Marketing Agencies for 2023
The European Union recently introduced a draft AI Act that compels companies to disclose when they use AI to generate content, making it easier for the public to evaluate investment advice and advertisements. The firms must also provide summaries of copyrighted content in generated material.
In the UK, the Financial Conduct Authority (FCA) requires firms promoting cryptocurrencies to retail traders to be authorized or registered or have their material approved by an authorized firm. Coinbase and several other firms are working with authorized firms to create compliant marketing campaigns.
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