How the EU AI Law puts personalized advertising on a tight leash
Posted: Thu Dec 26, 2024 9:28 am
Personalized advertising at its best is a dream come true for many advertisers. With personalization at its side, the effectiveness of advertising campaigns is finally potentially boosted. Personalized advertising, which until just a few years ago was sheltered in rather rudimentary formulas, is destined to take a quantum leap with the arrival of artificial intelligence (AI). However, and although the amalgamation of personalized advertising and AI can work true miracles, its wonders will be diluted, at least in these parts, with the European Union (EU) AI Law , which came into force at the beginning of this month and puts obstacles in the wheels of this powerful duo.
AI is able to recognize hidden patterns in vast amounts of unstructured data, which ultimately translates into better targeting options for advertisers. And not only that. This technology is also capable of creating personalized ads in just a few seconds. AI automates processes that once had to be carried out completely manually and enables brands to offer 100% personalized experiences to their customers.
However, the EU AI Law puts limits on the virtually endless possibilities that spring from the depths of AI-powered personalized advertising . Article 5 of Chapter II of the law , devoted to Prohibited AI Practices, establishes, for the time being, very clear restrictions that fully affect personalized advertising.
According to Article 5, if a gamer has been playing for hours and is therefore mentally exhausted, he cannot be confronted with, for example, personalised advertising messages that take advantage of his vulnerable position. "It is expressly prohibited to exploit people's vulnerabilities, for example those that are anchored in age ," explains legal expert Fabian Kreis in an interview with Horizont .
In this sense, advertising techniques that are based on manipulation and affect the subconscious in such a way that the "target" cannot make truly free decisions are prohibited , in accordance with the provisions of the EU AI Law.
The combination of AI and personalized advertising cannot take advantage of user vulnerabilities
The ban affects, for example, subliminal messages hidden in audio, video or images that cannot be consciously recognized by the user. Although this type of practice actually dates back to the 1950s, "the technical possibilities of AI systems give them a completely new dimension," Kreis emphasizes.
Beyond the provisions of Article 5 of Chapter II of the EU AI Law, personalised advertising is generally permitted under this regulation. However, if personalised advertising is based on biometric information, this advertising formula also faces a number of restrictions.
Personalized advertising that uses biometric data is, for example, advertising that tracks and analyzes the user's emotions in order to confront them with ad hoc designed messages . AI is, not surprisingly, perfectly capable of deducing the user's mood from their facial expressions and gestures, and advertising can use this "superpower" to its own advantage.
Since advertisers usually buy AI systems and do not develop them themselves, they are classified as “operators” in the eyes of the EU AI Law and are therefore subject to a whole host of requirements. For this reason, if they use AI to read user emotions, they must properly inform their potential customers about this.
“As a general rule, user consent must be expressly obtained when AI is used to enhance advertising with biometric data,” says Kreis. Advertisers must therefore be governed by maximum transparency in this regard. And “if it is determined that the use of an AI system may be potentially harmful to the user, its use must be suspended immediately,” Kreis adds.
Personalised advertising that draws on information about a user's ethnic origin, political beliefs, ideological convictions and sexual orientation is also highly sensitive in nature. It is already strictly prohibited under Article 9 of the General Data Protection Regulation (GDPR) if the user does not clearly express his or her consent to the use of such data.
Newsletter
Subscribe to our newsletter!
WhatsApp
Follow MarketingDirecto.com on WhatsApp
Topics
EuropeArtificial intelligence
Share
Twitter
IKEA launches its second-hand furniture platform in Spain
Is Mercadona the new Tinder?: the viral codes to flirt while shopping
TOP 5: MOST VIEWED
Media
10 Unconventional Christmas Movies That Will Feed Your Cinephilia This Holiday Season
Silent Night Christmas Movies
December 25, 2024
Marketing books, publications and studies
38% of Spaniards admit to spending more than they can on online purchases
Online shopping consumers
December 25, 2024
Interviews
“We realized that there was talent that didn’t have a window,” S. Carvalho (ISII Group)
Silvia Carvalho, president of ISII Group
December 26, 2024
Social Media Marketing
Elon Musk's 'scam': X increases the price of its Premium+ subscription by 4 euros
X Elon Musk
December 26, 2024
Latest news
Social Media Marketing
Elon Musk's 'scam': X increases the price of its Premium+ subscription by 4 euros
X Elon Musk
December 26, 2024
Interviews
“We realized that there was talent that didn’t have a window,” S. Carvalho (ISII Group)
Silvia Carvalho, president of ISII Group
December 26, 2024
Direct Marketing
The best of the year: the most read news in 2024 on MarketingDirecto.com
Most read news marketingdirecto.com
December 26, 2024
History of brands
The Converse Story: How the Chuck Taylor we armenia whatsapp data nt from sneaker to pop icon
Converse
December 25, 2024
Christmas campaigns
“Nothing needs to be added”: Smileat’s Christmas campaign that will steal your heart
Smileat Christmas
December 25, 2024
Recommended news
Influencers DANA
Social Media Marketing
Influencers as activists: these are the ones who are mobilizing against the DANA
The commitment of these influencers is not only measured by the number
AI is able to recognize hidden patterns in vast amounts of unstructured data, which ultimately translates into better targeting options for advertisers. And not only that. This technology is also capable of creating personalized ads in just a few seconds. AI automates processes that once had to be carried out completely manually and enables brands to offer 100% personalized experiences to their customers.
However, the EU AI Law puts limits on the virtually endless possibilities that spring from the depths of AI-powered personalized advertising . Article 5 of Chapter II of the law , devoted to Prohibited AI Practices, establishes, for the time being, very clear restrictions that fully affect personalized advertising.
According to Article 5, if a gamer has been playing for hours and is therefore mentally exhausted, he cannot be confronted with, for example, personalised advertising messages that take advantage of his vulnerable position. "It is expressly prohibited to exploit people's vulnerabilities, for example those that are anchored in age ," explains legal expert Fabian Kreis in an interview with Horizont .
In this sense, advertising techniques that are based on manipulation and affect the subconscious in such a way that the "target" cannot make truly free decisions are prohibited , in accordance with the provisions of the EU AI Law.
The combination of AI and personalized advertising cannot take advantage of user vulnerabilities
The ban affects, for example, subliminal messages hidden in audio, video or images that cannot be consciously recognized by the user. Although this type of practice actually dates back to the 1950s, "the technical possibilities of AI systems give them a completely new dimension," Kreis emphasizes.
Beyond the provisions of Article 5 of Chapter II of the EU AI Law, personalised advertising is generally permitted under this regulation. However, if personalised advertising is based on biometric information, this advertising formula also faces a number of restrictions.
Personalized advertising that uses biometric data is, for example, advertising that tracks and analyzes the user's emotions in order to confront them with ad hoc designed messages . AI is, not surprisingly, perfectly capable of deducing the user's mood from their facial expressions and gestures, and advertising can use this "superpower" to its own advantage.
Since advertisers usually buy AI systems and do not develop them themselves, they are classified as “operators” in the eyes of the EU AI Law and are therefore subject to a whole host of requirements. For this reason, if they use AI to read user emotions, they must properly inform their potential customers about this.
“As a general rule, user consent must be expressly obtained when AI is used to enhance advertising with biometric data,” says Kreis. Advertisers must therefore be governed by maximum transparency in this regard. And “if it is determined that the use of an AI system may be potentially harmful to the user, its use must be suspended immediately,” Kreis adds.
Personalised advertising that draws on information about a user's ethnic origin, political beliefs, ideological convictions and sexual orientation is also highly sensitive in nature. It is already strictly prohibited under Article 9 of the General Data Protection Regulation (GDPR) if the user does not clearly express his or her consent to the use of such data.
Newsletter
Subscribe to our newsletter!
Follow MarketingDirecto.com on WhatsApp
Topics
EuropeArtificial intelligence
Share
IKEA launches its second-hand furniture platform in Spain
Is Mercadona the new Tinder?: the viral codes to flirt while shopping
TOP 5: MOST VIEWED
Media
10 Unconventional Christmas Movies That Will Feed Your Cinephilia This Holiday Season
Silent Night Christmas Movies
December 25, 2024
Marketing books, publications and studies
38% of Spaniards admit to spending more than they can on online purchases
Online shopping consumers
December 25, 2024
Interviews
“We realized that there was talent that didn’t have a window,” S. Carvalho (ISII Group)
Silvia Carvalho, president of ISII Group
December 26, 2024
Social Media Marketing
Elon Musk's 'scam': X increases the price of its Premium+ subscription by 4 euros
X Elon Musk
December 26, 2024
Latest news
Social Media Marketing
Elon Musk's 'scam': X increases the price of its Premium+ subscription by 4 euros
X Elon Musk
December 26, 2024
Interviews
“We realized that there was talent that didn’t have a window,” S. Carvalho (ISII Group)
Silvia Carvalho, president of ISII Group
December 26, 2024
Direct Marketing
The best of the year: the most read news in 2024 on MarketingDirecto.com
Most read news marketingdirecto.com
December 26, 2024
History of brands
The Converse Story: How the Chuck Taylor we armenia whatsapp data nt from sneaker to pop icon
Converse
December 25, 2024
Christmas campaigns
“Nothing needs to be added”: Smileat’s Christmas campaign that will steal your heart
Smileat Christmas
December 25, 2024
Recommended news
Influencers DANA
Social Media Marketing
Influencers as activists: these are the ones who are mobilizing against the DANA
The commitment of these influencers is not only measured by the number