Deepfakes are AI-generated media that can mimic real people’s appearances and voices. These have rapidly evolved from a technological curiosity to a significant force which reshape digital business models. Nowadays deepfakes offer a wide range of commercial applications from personalized advertising and virtual influencers to content creation and customer service automation (Herbert Smith Freehills, 2024; Ferraro et al., 2024). However, as the technology advances this brings complex ethical especially about misinformation.
Digital business models are using deepfake technology to innovate and enhance customer engagement. Companies are exploring virtual influencers who engage with audiences and offer brands a new way to connect without the use of human influencers. Deepfakes also play a role in personalized marketing where tailored AI driven content creates more compelling advertisements. However, the rise of deepfakes goes hand in hand with ethical challenges. Which includes concerns about authenticity, consent, and misuse. As businesses adopt these technologies, they must carefully consider the potential risks alongside the opportunities.
Ethical challenges connected to the use of deepfakes are significant and particularly now when digital transformation spreads across industries. A major concern is the use in spreading misinformation such as deepfake videos of politicians on big social media platform like Meta and X. This as a result can have an undermining impact in public figures and institutions. Additionally, deepfakes involve consent and privacy issues. This because the media can be created and shared without the permission of an individual. Therefore, companies aiming or using this new technology must implement ethical guidelines that clearly label synthetic media and do their utmost best to prevent misuse and consent violations.
As deepfakes influence digital business models companies must balance innovation with responsibility. While deepfakes offer immense potential in marketing, entertainment, and customer engagement, they also pose significant risks. Companies need to explore these opportunities but must also set ethical standards and develop safeguards to protect individuals and society. The future of deepfakes in business depends on leveraging their potential while carefully managing ethical implications.
Deepfakes in advertising – who’s behind the camera? | Herbert Smith Freehills (2024). https://www.herbertsmithfreehills.com/notes/tmt/2024-02/deepfakes-in-advertising-whos-behind-the-camera
Ferraro, C., Demsar, V., Sands, S., Restrepo, M., & Campbell, C. (2024). The paradoxes of generative AI-enabled customer service: A guide for managers. Business Horizons, 67(5), 549–559. https://doi.org/10.1016/J.BUSHOR.2024.04.013
