Are consumers revolting against AI marketing?

Brian Sullivan (Anchor) 00:00.200

This is Porsche's animated ad. Look at that. It was created with hand-drawn sketches and a little bit of CGI, but no AI was reportedly used. Videos racking up millions of views online and many viewers are praising the brand Porsche for ditching AI. This reaction comes just weeks

Brian Sullivan (Anchor) 00:22.400

after Coca-Cola faced the typical online backlash over its AI-generated Christmas ad. Some critics called it soulless or devoid of creativity. The point of all this is not to bash one or the other or what not. It's to ask a question if consumers are starting to reward what feels

Brian Sullivan (Anchor) 00:42.280

real and could maybe leaning into AI backfire for some brands. Let's ask professor and marketing expert Americas Reed. He is a prof at the Wharton School of Business also a CNBC contributor. Happy New Year Americas. I mean it's it's it's Can we read anything from this other than

Brian Sullivan (Anchor) 01:03.080

it's one ad versus another? Do you think there's a a story to this no AI thing? Uh happy

Americus Reed (Professor) 01:09.600

new year to you. Well Brian, I think there is a story here. And I think if we look at what's going on here, I mean you're a car guy. So you understand that the community is built around those loyalists who are really into the product, really into the car. And I think what

Americus Reed (Professor) 01:23.600

Porsche is really tapped into here is a kind of community that says, "Hey, you know what? We're We're powerful brand, we're about craftsmanship, we're about authenticity, we're about all these wonderful things, and let's communicate that to our audience by intentionally saying,

Americus Reed (Professor) 01:39.520

hey, we're going to we're going to actually produce some creative around this, give you some Easter eggs, give you some things that if you're really in the know, if you really know what's going on here, you can pick out the little gyms that are going on in this commercial. Oh,

Americus Reed (Professor) 01:51.640

and by the way, it's real because it's made by real humans and it's made for real humans who love the Porsche brand. Yeah,

Brian Sullivan (Anchor) 01:57.600

it is a it is a Listen, it's a beautiful ad and part because they have beautiful cars, at least in this this person's humble opinion. I'm not sure I can fit in one, but I like the look. Either way, America's You know, my son was watching TV and the Coca-Cola ad came on. He's 11,

Brian Sullivan (Anchor) 02:10.600

he's a dead, you know, that was all AI. And he didn't say it like a positive way. Our Our companies and brands got to look at this and go, "Huh, maybe AI is not the answer."

Americus Reed (Professor) 02:22.120

It's a great question, Brian. I think that the AI train is here. So, companies and brands, product, services, organization will be using these tools. And so, I think the big question is what's going to really happen is for brands. It's going to be very important for them to

Americus Reed (Professor) 02:40.000

figure out how to untap the true authentic creativity in these tools. And so, many companies are going to use these tools, but the question is, my prediction is this, the creatives who are never creative are going to go away. It's going to be an extinction level event for those

Americus Reed (Professor) 02:53.560

guys. But the people who are true, careful, authentic narrative storytellers, they're going to figure out ways to be even more creative with these tools. And you're going to see a lot of that happening in the space of marketing and creating ads like this. Again, the Porsche

Americus Reed (Professor) 03:07.360

brand is ad is a little bit different because it's it's playing into that authenticity that makes it work so really well. Yeah,

Brian Sullivan (Anchor) 03:13.680

because you are the professor of this at one of the most prestigious universities, dare I say, in the world. So what is then the professor Reed's advice to all the corporate marketing executives who are no doubt sitting at home in their PJs, more comfortable than us, watching

Brian Sullivan (Anchor) 03:30.040

right now.

Americus Reed (Professor) 03:30.880

Well, here's my advice, Brian. I would say, listen, AI is not going to take your job. A person who's gifted and skilled and well proficient in AI is going to take your job. So, I know assignment. So, I'm I'm in myself included as a professor, everyone is going to have to figure

Americus Reed (Professor) 03:47.760

out how do I get better at what I do using these tools and you can't avoid it. You can't you you have to embrace it. You have to dive in head first and figure out what are the different ways that I can make and my own work productive, more elevated, more creative, and all of

Americus Reed (Professor) 04:02.640

these different things. That's my prediction.