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The Advertising Standards Council of India (ASCI) has taken a bold step by integrating artificial intelligence (AI) into its ad monitoring processes. With the explosive growth of digital advertising, the need for robust regulation has never been more urgent. AI is now at the forefront of this effort, helping to ensure that digital advertisements adhere to ethical standards, protect consumers, and promote accountability. Here are five key insights into how AI is reshaping digital advertising compliance in India by Sandeep Agrawal, Co- Founder and Director at TeamLease RegTech Private Limited, the largest compliance management company in India:
1. AI Enhances Ad Monitoring at Scale
Traditional methods of monitoring advertisements struggle to keep up with the sheer volume of ads circulating online, especially with the rise of sectors like alcohol, healthcare, and digital finance. In 2023-24, ASCI scrutinized over 8,229 advertisements, with a staggering 79 percent of problematic ads originating online. Manually regulating these ads across numerous platforms is no longer feasible, but AI tools can analyze thousands of ads daily. This scale of operation would be impossible to achieve through human oversight alone, making AI an indispensable asset in maintaining compliance.
2. Increasing Non-Compliance in Digital Ads
The rise of digital ads has presented a unique set of challenges for regulators. In comparison to print and television, where compliance rates stand at 97%, digital ads lag far behind at 75% compliance. Sectors like healthcare, personal care, and illegal offshore betting contribute significantly to the issue, with healthcare ads alone accounting for 19% of violations in 2023-24. ASCI’s AI system identifies misleading claims, exaggerated health benefits, and inappropriate content, offering the potential to bridge the compliance gap.
3. Addressing Cross-Border Advertising Challenges
One of the biggest challenges in regulating digital ads is their borderless nature. Online ads can easily bypass geographical and jurisdictional boundaries, making it difficult to hold advertisers accountable. ASCI’s AI-based system is designed to detect and flag non-compliant ads in real time, regardless of their origin. This ability to monitor ads across platforms and regions helps mitigate the risks posed by cross-border advertising, ensuring that ethical standards are upheld in a globally interconnected digital landscape.
4. AI Drives Transparency and Accountability
AI’s integration into ad monitoring is expected to enhance transparency among advertisers. By automatically scanning digital ads for violations of advertising codes, the system provides immediate feedback to advertisers, encouraging them to adhere to established standards. The real-time flagging of non-compliant ads reduces the likelihood of misleading advertisements reaching consumers. As a result, advertisers are held accountable for their content, and consumers are better protected from harmful messaging.
5. Future Growth and Challenges of AI in Ad Regulation
The digital advertising market in India is projected to reach a whopping US$ 24.4 billion by 2030, with a compound annual growth rate (CAGR) of over 21.3%. While AI offers a promising solution to the challenges posed by this rapidly expanding market, its implementation is not without obstacles. Concerns around the accuracy of AI systems, potential biases in ad detection, and the need for human oversight remain. ASCI will need to continuously refine its AI tools to ensure that they can effectively and fairly regulate the evolving digital advertising ecosystem.
