A survey by Billion Dollar Boy revealed that brands experienced more positive consumer engagement with generative AI content than traditional content. Brands utilizing AI generators may gain a competitive edge, but it's crucial to address potential legal concerns.

When implementing AI generators for consumer interaction, brands must be wary of copyright and trademark issues. Understanding the prompts consumers use to create content is vital to prevent issues of infringement. Brands do not want to find themselves embroiled in an IP lawsuit because consumers were trying to use the AI generator to create knockoff products. Brands will also want to think about what rights, if any, they want to have over the products consumers create using their tool.

Additionally, for brands engaging consumers in creating physical products, clear disclosures are essential. Companies should ensure that representations made about the product and AI generation are accurate and not misleading. Overstating the capabilities of the AI may lead to consumer dissatisfaction and legal repercussions.

In summary, while AI generators can enhance consumer engagement, brands must navigate legal considerations to protect intellectual property and maintain transparency in their interactions with consumers. By being conscious of these factors, brands can effectively leverage AI technology to connect with their audience and stay ahead in the competitive market landscape.