Category: In the News

AI companies keep forgetting they’re brands — and it’s costing them.

A week apart, OpenAI and Perplexity reminded everyone that in 2025, AI isn’t just about technology. It’s about brand. From user outrage over latest updates to theatrical headlines for attention — the fallout has been fast and public.

On one side: OpenAI replaced older GPT models like -4o and o3 with GPT-5 without warning on August 7, regardless of whether users liked it, causing outrage. The result: CEO Sam Altman promised to restore GPT-4o and increase GPT-5’s reasoning limits.

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While most AI companies have headquarters in Silicon Valley, U.S. federal lawmakers have not yet broached regulating the sector. President Donald Trump has even gone so far as to encourage the tech’s development and removal of federal regulations that could hinder AI development and deployment in The White House’s AI framework.

And while there are AI laws that vary by state, the lack of federal regulation sets a loose framework that could be hard for marketers to hang their hat on. But that stands in stark contrast to Europe’s existing, stricter data and privacy laws — and new calls for AI transparency, copyright protection and public safety as of July. Global brands might soon find themselves at a crossroads as to where and how generative AI can be used in campaigns.

However, it’s a nuanced conversation that hinges on advertisers’ appetite for AI, governmental bodies and campaign goals, according to an AI lead at a global agency.

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