Welcome to The Week in Data, MarTech and AI, a weekly roundup from Quad Insights that sums up the latest news surrounding the technology–driven transformation of marketing. 

The bell tolls for TikTok — What do marketers think?

The U.S. Supreme Court on Friday upheld a law that essentially bans TikTok in the United States starting this Sunday, Jan. 19, NBC’s Lawrence Hurley and Kat Tenbarge report. Among other recent developments surrounding the law:

Meanwhile, here’s some of what marketers and other observers are saying:

  • Regardless of the final outcome, marketers should take a fresh look at social media strategies and tactics. Writing in PR News, Holly Jackson, VP of Influencer Marketing, Innovation and Insights at Traackr, says that “brands need to be prepared for more regulations and consumer behavior shifts. Future-proofing an influencer strategy will give you the flexibility and confidence to navigate whatever lies ahead.”
  • TikTok’s potential disappearance from U.S. app stores would be a boon for other platforms. “Chief marketing officers who we’ve spoken with confirmed that they will divert their media dollars to Meta and Google if they can no longer advertise on TikTok,” Forrester analyst Kelsey Chickering tells Tom Gerken and Liv McMahon of the BBC.
  • Brands should not overreact. “For us, the jury is out on some of these viral TikTok videos because for every one that has resulted in sales blowing out, there is a lot of content that is meaningless,” Bill McClinton, President of brand licensing agency Global Icons, tells Mark Seavy of Licensing International. “From a sales perspective, TikTok Shop hasn’t been around that long, so we are not going to have to replace a lot of revenue, and Shopify and Instagram aren’t going away.”

FTC action upends General Motors and OnStar data-sharing practices

Federal regulators are taking action against General Motors and its OnStar subsidiary for allegedly collecting and selling driver location and other sensitive information from connected cars without properly informing consumers and getting their consent.

Under a proposed settlement just announced, GM and OnStar would be barred from sharing that information to consumer reporting agencies for five years. They will also be required to reform consumer disclosure practices to provide greater transparency, according to a Federal Trade Commission press release. The FTC alleges that GM used misleading enrollment processes to get people to sign up for the OnStar safety and security system.

In announcing the complaint and proposed settlement, the FTC also issued general guidance on data-collection business practices. Among the takeaways: “Get affirmative express consent before collecting or sharing data” and “Tell the whole truth about why you’re collecting data.”

At NRF, American Eagle Outfitters CMO advises caution on AI

The idea sounds enticing enough: using generative AI to meet demands for more content. But marketers who move too fast may find themselves stuck inside a technology trap, American Eagle Outfitters CMO Craig Brommers said during a panel discussion at the National Retail Federation Big Show in Manhattan this week, per Peter Adams of Marketing Dive. “What I worry about is the potential of generic creative,” Brommers said, stressing the importance of authenticity. “When we have to compete with the big boys and big girls at Amazon, Walmart, et cetera, we have to stand out brand-first, and that will be a trick.”

OpenAI to fund Axios AI newsrooms

While some news publishers such as The New York Times are fighting AI battles in court, others are engaging in a different way. Ray Shultz of MediaPost reports that Open AI is funding the creation of four new Axios newsrooms — in Pittsburgh, Kansas City, Boulder, Colorado and Huntsville, Alabama.

In a story on the partnership, Sara Fischer of Axios writes that ChatGPT will “use Axios journalism to answer user queries with attributed summaries, quotes and links to Axios stories.” AI won’t be used to report stories, the company said in a memo, “but to help build a system for creation, distribution, and monetization of our journalism.” Here’s how OpenAI describes the partnership.

More on AI:

AdExchanger: Google lifting prohibition on fingerprinting

Effective Feb. 16, AdExchanger’s Allison Schiff reports, Google “will no longer prohibit fingerprinting for companies that use its advertising products.” Device fingerprinting works by collecting a unique set of data, such as screen size, browser type, operating system, installed plugins and more, that together can be used to identify and target specific users. Here’s how Google explains their new policies to users.

More on customer data and digital ID:

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