Biden’s Executive Order to Shape AI-Driven Marketing

Last Updated: October 31, 2023
AI Marketing

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In a pioneering move, the U.S. President, Joe Biden, has issued an executive order with the aim of establishing robust standards for the utilization and development of AI, changing the landscape of AI-driven marketing.

Quick Takes: 

  • Biden has issued an executive order that pressures AI initiatives to enhance security.
  • The order prioritizes bias reduction, likely provoking investigations of marketing tools.
  • Senator Warner hints at more AI-based regulations, particularly in competition policy.
  • U.S.-based marketers should expect increased oversight as the government hires more AI talents.
AI-Driven Marketing

Biden’s Regulatory Emphasis on AI Marketing 

One of the critical aspects of Biden’s executive order includes reporting protocols and safety testing for AI systems. During a time when consumers are becoming increasingly cautious about their data privacy, the order puts great emphasis on protecting personal information.

As a consequence, AI tools that are reliant on personal data may face growing pressure to enhance their transparency and safeguard data security measures. AI-centric marketing tools, performing functions like content generation, targeted advertising, and consumer analytics, will likely come under close examination. Senator Mark Warner also recently dropped hints about the potential for additional AI-related regulations, specifically in areas that concern competition policy.

As AI capabilities continue to increase, the executive order emphasizes its focus on upkeeping privacy standards. Firms that rely on consumer data to prompt their AI systems may find themselves changing their practices in light of increasingly stringent privacy regulations being put into place. Biden has made it clear that, while he supports AI innovations, breaches of ethics will not be tolerated.

The executive order is said to direct the Federal Trade Commission (FTC) to utilize its authority, ensuring equal competition in AI use and development. This initiative opens the possibility of antitrust actions against marketing technology firms engaged in unfair practices.

On top of that, it underscores the need for easing bias in AI systems, which could lead to audits of marketing tools to detect bias in areas like dynamic pricing and ad delivery. For this reason, adopting bias reduction methods and rolling out regular audits of algorithms will become increasingly important.

However, as the U.S. government expands its staffing of AI talent, auditing and oversight of AI-driven marketing are expected to bolster under these new standards.

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