Americus Reed, Wharton School of Business, joins 'Power Lunch' to discuss if utilizing AI for advertising might actually hurt marketing.

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

A recent CNBC segment examined the contrasting public reactions to Portia's hand-drawn animated ad, which used no AI, and Coca-Cola's AI-generated Christmas ad. Portia's ad has received millions of views and widespread praise for its authenticity, while Coca-Cola's ad faced criticism for lacking creativity. 

Marketing expert Americus Reed from the Wharton School noted that brands tapping into authenticity and craftsmanship are resonating with consumers. Reed advised that while AI will remain a key tool in marketing, success will depend on how brands use it to enhance authentic storytelling, and professionals must adapt to leverage AI effectively.

Marketing in the age of AI

This is Portia's animated ad. Look at that. It was created with hand-drawn sketches and a little bit of CGI. But no AI was reportedly used. The video is racking up millions of views online, and many viewers are praising the brand, Portia, for ditching AI. This reaction comes just weeks after Coca-Cola faced the typical online backlash over its AI-generated Christmas ad. Some critics called it soulless or devoid of creativity. The point of all this is not to bash one or the other or whatnot. It's to ask a question if consumers are starting to reward what feels real and could maybe leaning into AI backfire for some brands. Let's ask professor and marketing expert Americus Reed. He is a prof at the Wharton School of Business, also a CNBC contributor. Happy New Year, Americus. I mean, it's... Can we read anything from this other than it's one ad versus another? Do you think there's a story to this no AI thing? Happy New Year to you as well, Brian. I think there is a story here. And I think if we look at what's going on here, I mean, you're a car guy, so you understand that the community is built around those loyalists who are really into the product, really into the car. And I think what Porsche has really tapped into here is a kind of community that says, hey, you know what? We're a powerful brand. We're about craftsmanship. We're about authenticity. We're about all these wonderful things. And let's communicate that to our audience by intentionally saying, hey, we're gonna actually produce some creative around this, give you some Easter eggs, give you some things that if you're really in the know, if you really know what's going on here, you can pick out the little gems that are going on in this commercial. Oh, and by the way, it's real because it's made by real humans and it's made for real humans. Who love the Porsche brand. Yeah, it is a, listen, it's a beautiful ad in part because they have beautiful cars, at least in this person's humble opinion. I'm not sure I could fit in one, but I like the look. Either way, America's, you know, my son was watching TV and the Coca-Cola ad came on. He's 11, he said, dad, you know, that was all AI. And he didn't say it like a positive way. Are companies and brands gonna look at this and go, huh, maybe AI is not the answer. It's a great question, Brian. And I think that the AI train is here. So companies and brands, product services organizations will be using these tools. And so I think the big question is what's gonna really happen is for brands, it's gonna be very important for them to figure out how to untap the true authentic creativity in these tools. And so many companies are gonna use these tools, but the question is, my prediction is this, the creatives who were never creative are gonna go away. There's a distinction level of in for those guys, but the people who are true, careful, authentic narrative storytellers, they're gonna figure out ways to be even more creative with these tools. And you're gonna see a lot of that happening in the space of marketing and creating ads like this. Again, the Porsche brand ad is a little bit different because it's playing into that authenticity that makes it work so really well. Yeah, because you are the professor of this at one of the most prestigious universities, dare I say, in the world. So what is then the professor Reed's advice to all the corporate and marketing executives who are no doubt sitting at home in their PJs more comfortable than us watching right now? Well, here's my advice, Brian. I would say, listen, AI is not gonna take your job. A person who's gifted and skilled and well-proficient in AI is gonna take your job. So, I mean, myself included as a professor, everyone is going to have to figure out how do I get better at what I do using these tools? And you can't avoid it. You can't, you have to embrace it. You have to dive in headfirst and figure out what are the different ways that I can make my own work productive, more elevated, more creative in all of these different things. That's my prediction.

Russia's defense ministry released video footage on Wednesday (December 31) of what it said was a downed drone at a briefing intended to show Ukraine tried this week to attack a presidential residence and challenge Kyiv's denials that such an attack took place.

Moscow

Russia releases video footage to challenge Kyiv over alleged attack

Severe humanitarian needs in Gaza are worsening as dozens of aid groups are forced to halt operations under new Israeli restrictions.
Up to 48 organizations have stopped work, leaving fewer clinics, food distributions and shelters for civilians.

Jerusalem

Middle East Conflict

Israel to block dozens of aid groups working in war-battered Gaza

The world has begun saying goodbye to 2025, with South Pacific nations first to welcome 2026.

Council of the City of Sydney

Fireworks light up the globe as nations ring in 2026

CNN, citing sources, reported that the CIA had carried out a drone strike earlier this month on a port facility on the coast of Venezuela. U.S. President Donald Trump said the U.S. struck a facility where boats accused of carrying drugs "load up."

Caracas

Trump says U.S. strike hit dock in Venezuela

President Trump says the U.S. "knocked out" a "big facility" last week linked to alleged drug boat operations. Unlike previous operations at sea, this strike occurred on Venezuelan territory, though the president did not disclose specific details about the timing, location, or the party responsible for the attack.

Washington

Trump says U.S. launched strike on boat dock inside Venezuela

Tatiana Schlossberg, the granddaughter of President John F. Kennedy and an environmental journalist, has died at the age of 35 following a battle with cancer, the JFK Library Foundation announced Tuesday.

New York

Tatiana Schlossberg, JFK's granddaughter, dies at 35

The United Arab Emirates says it's withdrawing its remaining forces from Yemen. The move comes after Saudi Arabia bombed a port in Yemen, saying it targeted an arms shipment intended for a UAE-backed separatist force.

Al Mukalla

Saudi Arabia bombs port in Yemen

In an overnight strike, the Saudi military hit a Yemeni port saying they were neutralising a weapons shipments arriving from UAE. The UAE has denied the shipment contained weapons and claimed the vehicles were not intended for any groups. Both countries have supported the fighting sides in the over-decade long war in Yemen, but this strike has turned this rivalry into an open dispute.

The UAE denies shipping weapons to Yemen after overnight Saudi strike

The Kremlin said Tuesday it would toughen its negotiating position in talks on ending the war in Ukraine after accusing Kyiv of attacking a Russian presidential residence — an allegation that Kyiv said was baseless and intended to prolong the conflict.

Russia will toughen negotiating stance on war in Ukraine

China fired rockets into waters off northern and southern Taiwan on Tuesday (December 30) and deployed new amphibious assault ships alongside bomber aircraft and destroyers on the second day of its most extensive war games.

Taipei City

China fires rockets towards Taiwan in war games simulating blockade

President Donald Trump on Monday confirmed an alleged drug-related site was targeted during a recent strike, saying, "they load the boats up with drugs, so we hit all the boats and now we hit the area." Trump did not say when the strike happened or exactly where.

U.S. strike hits Venezuelan port facility

The search for Malaysia Airlines flight 370 that went missing in 2014 with 239 people on board is expected to resume Tuesday (December 30). The Malaysian government and a private marine robotics company say they will use advances in technology to aid in the search.

Kuala Lumpur

Search resumes for Malaysia Airlines flight that disappeared in 2014

The two countries have agreed to hold fire, freeze troop movements and allow civilians to return home under a new agreement.

Krong Poi Pet

Thailand-Cambodia ceasefire holds as 72-hour observation period ends

Head of Yemen's presidential council, which is supported by Saudi Arabia, says UAE-backed forces in the country should leave within 24 hours.

Yemen’s presidential council cancels UAE defence deal

U.S. President Donald Trump said the United States could support another major strike on Iran were it to resume rebuilding its ballistic missile or nuclear weapons programs and warned Hamas of severe consequences if it does not disarm.

Florida

Trump warns Iran of possible strike, urges Hamas to disarm

U.S. hit an area in Venezuela where boats are loaded with drugs, Trump says, as Pentagon carries out another deadly strike in the Pacific. This claim follows a series of U.S. strikes on boats in the Eastern Pacific, raising the total number of known strikes to 31 and resulting in over 100 deaths.

Trump claims attack on a dock in Venezuela, strikes kill two in Pacific

The Taiwanese government says it has placed its forces on alert as China intensifies its military presence in the Indo-Pacific Ocean and launches air, navy and rocket drills around the island.

Taiwan's forces on alert as China launches military drills

Ukrainian President Volodymyr Zelenskyy is denying Russian Foreign Minister Sergei Lavrov’s claim that Ukraine tried to attack President Vladimir Putin's residence in northern Russia.

Kyiv

Ukraine Invasion

Zelenskyy denies Russian claim that Ukraine targeted Putin’s residence

President Trump said after a meeting with Israeli Prime Minister Benjamin Netanyahu that Hamas must disarm soon or "there will be hell to pay." He said the next phase of the Gaza peace plan could move forward quickly if Hamas disarms.

Trump warns "hell to pay" if Hamas doesn't disarm

CBC’s Kris Reyes highlights the biggest AI advancements in 2025 along with the continued calls to establish clear boundaries in an effort to prevent misuse.

DeepSeek and the biggest AI advancements in 2025

Russia accused Ukraine on Monday (December 29) of trying to attack President Vladimir Putin's residence in northern Russia, although it provided no evidence to back up an assertion that Kyiv dismissed as baseless and designed to undermine peace negotiations.

Russia claims Ukraine tried to attack Putin residence

Two helicopters collided above Hammonton, New Jersey, and one person has died, officials say. CBS News' Elaine Quijano reports.

Hammonton

Helicopters collide in New Jersey

U.S. President Donald Trump is meeting with Israeli Prime Minister Benjamin Netanyahu in Florida on Monday (December 29) as questions linger about the future of the U.S.-backed ceasefire in Gaza.

Palm Beach

Trump and Netanyahu meet in Florida to discuss Gaza ceasefire

British-Nigerian boxer Anthony Joshua was involved in a road accident on Monday in Makun, Ogun State, south-west Nigeria.

Makun

British boxer Anthony Joshua survives car crash that killed two others

In a new show of force, China has mobilized its navy, air force, and ground troops to simulate a blockade of the self-ruled island's key ports. The military drill comes on the heels of an $11bn US arms sale to Taipei.

China stages new military exercises around Taiwan

U.S. President Donald Trump said he believes both Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin truly want peace as he and Zelenskyy met in Florida. Some experts say Trump is 'delusional' if he truly thinks Putin wants peace.

Trump-Zelenskyy meeting ends with optimism but no deal

Although the U.S. security guarantees for Ukraine have been "100% agreed," they have a short expiration date, the Ukrainian president explained after revealing more details following his meeting with Trump on Sunday.

U.S. security guarantees for Ukraine set for 15 years, Zelenskyy says

China's military moved army, naval, air force and artillery units around Taiwan on December 29 for its "Justice Mission 2025" drills, as the island vowed to defend democracy and mobilized troops to rehearse repelling a potential Chinese attack.

China launches 'Justice Mission 2025' war games around Taiwan

President Trump spoke with Russian President Vladimir Putin by phone before meeting with Ukrainian President Volodymyr Zelenskyy in Florida on Sunday. Trump said he thinks both men are ready for peace.

Trump meets with Zelenskyy, insists Putin is ready for peace

Far-right politics have pushed further into the mainstream across much of Europe. Populist parties, even in opposition, are shaping national debates on migration and the economy. The trend reflects growing voter frustration over living costs, borders and political trust.

Marketing in the age of AI

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