As AI-generated content becomes more sophisticated and increasingly difficult to distinguish from human-created work, brands are facing a new set of strategic and ethical questions.
When everyone has access to the same powerful tools, how do companies stand out? How do they use AI to enhance creativity and efficiency without eroding trust or authenticity?
In an episode of The Ripple Effect, Americus Reed, Professor of Marketing at the Wharton School, joined host Dan Loney to unpack how AI is reshaping marketing and advertising. Reed explored what early adoption has revealed, why smaller brands suddenly have more creative firepower, and why ethical deployment and brand alignment will matter more than ever as AI becomes ubiquitous. Below follows an edited transcript.
Q&A: Dan Loney in conversation with Americus Reed
Dan Loney: We’re early in 2026, and AI seems to be everywhere. How deeply is it embedded in marketing and advertising right now?
Americus Reed: What we’re seeing is an incredible acceleration. It really is the wild west. Everyone is jumping in, and the rules are being written in real time. What’s fascinating is how quickly the quality has evolved. Tools that were experimental just a few years ago are now producing output that’s approaching professional-grade creative.
For smaller companies in particular, this is a major shift. They can now create high-quality advertising and visuals that would previously have been cost-prohibitive. On the consumer side, people are aware these tools are being used, not only to create ads, but also behind the scenes for research, insight generation, and targeting. At this point, opting out isn’t really an option.
Dan Loney: You mentioned research. How much are you personally using AI in your own work to understand where the right balance is?
Americus Reed: Even in my own work, I had to push myself to lean in. I’m a digital immigrant, so this didn’t come naturally. But I now use AI to help structure ideas, explore research directions, and even enhance how I engage with students in the classroom.
This moment reminds me of the mid-1990s, when some organisations thought they could skip the internet altogether. That wasn’t realistic then, and it isn’t realistic now. AI is the next milestone. Every day, there’s a new tool or platform entering the market, and part of the challenge is deciding which ones actually help you do your job better.
Dan Loney: This seems like a real opportunity for smaller businesses to level the playing field with much larger competitors.
Americus Reed: Absolutely. And that’s a good thing. When smaller companies can compete more effectively with larger ones, the entire marketplace improves. Consumers benefit from better ideas, more innovation, and more choice.
That said, one of the most important things I tell companies is not to treat AI like a hammer looking for a nail. You shouldn’t use these tools just because they’re available. The real question should be: what problem can this help me solve that I couldn’t solve before? When AI is deployed with that mindset, it can meaningfully enhance productivity and creativity.
Dan Loney: That raises concerns about ethics and best practices, especially as AI-generated content becomes indistinguishable from real creative work.
Americus Reed: We’re heading very quickly toward a point where you won’t be able to tell the difference. That’s both exciting and concerning. It raises serious questions about misinformation, manipulation, and trust.
Right now, there aren’t clear, universally accepted parameters or regulations. Everything is forming in real time. Companies need to think carefully about how they deploy these tools, not just what they can do with them. Ethical use, transparency, and intention are going to matter a lot.
Dan Loney: Do you think brands need some form of internal guidelines or best practices to avoid crossing lines with consumers?
Americus Reed: Yes, because consumer response depends entirely on how AI is used. If a brand deploys AI in a way that feels deceptive or inauthentic, people will react negatively. But if it’s used to enhance creativity or deepen connection, consumers can respond very positively.
There’s also nuance based on brand size and context. An AI-generated ad from a global brand might be perceived differently than one from a small startup. The key is intentionality. AI should support the brand’s meaning system and help communicate something that couldn’t be expressed as effectively otherwise.
Dan Loney: A lot of AI content right now leans into humour. Is that a smart entry point for marketers?
Americus Reed: Humour is a natural gateway. People are already encountering AI through memes and fantastical scenarios, and that creates a sense of safety. When something is clearly exaggerated or humorous, there’s less backlash.
Using humour allows brands to familiarise consumers with AI in a low-risk way. It builds trust and comfort, which can carry over when AI is later used for more serious or emotionally resonant messaging.
Dan Loney: Is there a generational divide in how consumers respond to AI-driven marketing?
Americus Reed: Younger consumers certainly have more built-in familiarity, but awareness spans generations now. As AI becomes more common, the novelty fades, and that creates a new challenge: differentiation.
When everyone uses the same tools, everything starts to look similar. That’s where genuine storytelling and authentic brand narratives become critical. The brands that succeed will be the ones that know how to use AI to build trust and resonance, not just efficiency.
Dan Loney: From a research perspective, what are you most interested in watching develop next?
Americus Reed: There are two areas. One is improving our ability to predict and understand consumer reactions through better intelligence and insight. The other is creative execution, using AI to elevate messaging and storytelling.
The real opportunity lies in the convergence of those two areas. Marketers who start experimenting now will be best positioned to use AI thoughtfully and effectively as the ecosystem matures.
Dan Loney: No matter how advanced the tools become, brand still has to come first.
Americus Reed: Exactly. Technology should serve the brand, not the other way around. We’ve already seen examples where brands either leaned into AI or explicitly distanced themselves from it, and both approaches can work if they’re aligned with brand identity.
If companies focus on using AI to enhance consistency, resonance, and trust, rather than novelty for its own sake, they’re far less likely to run into trouble.