Why Text-to-Image AI Requires a New Branding Mindset

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Week 320 | Strategy & Business Model Section | 2

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Why Text-to-Image AI Requires a New Branding Mindset

By Andrés Gvirtz and Oguz A. Acar | MIT Sloan Management Review | October 26, 2023

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In the world of marketing, brand identity is the castle that guards a company’s reputation, with a moat that keeps the competition at bay. But what if the very ramparts that have protected brands could hinder their future in the age of generative AI?

Brands ready to shake off the old, protective mindset will find that generative AI opens new doors to cocreation. Text-to-image AI models, such as OpenAI’s DALL-E, eliminate the barriers for everyday consumers to generate visual designs, allowing unprecedented levels of personal connection and customization.

The path forward requires a mindset shift: Brand managers must evolve from enforcers and guardians to enablers. It is about focusing on broader innovation and connection opportunities instead of obsessing over minutiae like exact color values.  This isn’t a call for anarchy. Brands can explore the possibilities of generative AI while keeping within their comfort zones and established boundaries.

Of course, brand managers must guard against potential misuses and walk a tightrope between creative freedom and control. But let’s not forget: Brand perceptions have always been coauthored with consumers and have depended on an intricate two-way relationship between brands’ actions and consumers’ reactions. 

While brands cannot control every narrative twist, they can guide the dialogue more proactively. One effective approach is to cultivate environments where consumers can connect with one another and the brand and contribute to the brand story within a framework of transparent rules, incentives, and recognition. 

Brand managers also need to be vigilant about ethical and legal issues surrounding text-to-image models. As lawsuits entangle key AI tool companies, staying abreast of these developments around ownership and intellectual property (IP) rights becomes essential.  Brands are legitimately concerned about legal implications, but where challenges arise, innovation follows.

All in all, text-to-image generative AI models are tearing down the walls of the traditional branding castle, creating a new reality ripe with opportunities, risks, and challenges. As we navigate this transformation, every brand manager must confront a vital question: Will your brand be a builder of bridges or barricades in this new era?

3 key takeaways from the article

1. Brands ready to shake off the old, protective mindset will find that generative AI opens new doors to cocreation. Text-to-image AI models, such as OpenAI’s DALL-E, eliminate the barriers for everyday consumers to generate visual designs, allowing unprecedented levels of personal connection and customization.
2. The path forward requires a mindset shift: Brand managers must evolve from enforcers and guardians to enablers. It is about focusing on broader innovation and connection opportunities instead of obsessing over minutiae like exact color values.
3. All in all, text-to-image generative AI models are tearing down the walls of the traditional branding castle, creating a new reality ripe with opportunities, risks, and challenges. As we navigate this transformation, every brand manager must confront a vital question: Will your brand be a builder of bridges or barricades in this new era?

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Topics:  Artificial Intelligence, Marketing, Strategy