Analysis: “While Levi’s has been at pains to stress that it is still photographing with real models, this is an example of AI use for efficiency that could easily backfire,” said Ostler. “Using AI-generated models could be seen as a lazy and deceptive way to achieve diversity.”

More so, gen AI imagery could propagate harmful, stereotypical associations involving race, gender, and ethnicity, said Greene.

“In addition, this may affect the employment of diverse models who have worked hard to gain a place in the industry,” Greene added. “The ability to use gen AI to create realistic, diverse models for advertising is at the intersection of two key conversations happening right now—concerns around job loss and the importance of diversity and inclusion in advertising.”

Baggu’s AI-generated bag print is ‘unforgivable‘

The ad: San Francisco-based sustainable brand Baggu, known for its popular reusable shopping bags, announced a collaboration with New York’s Collina Strada. While Baggu’s special-edition drops typically sell out within minutes, the highly anticipated Collina Strada-Baggu collection faced backlash for featuring AI-generated prints on the bags.

The controversy: After the collaboration was announced, a Reddit user analyzed photos from the collection, which included horse-shaped purses with dream-like prints, using a program that detects AI-generated images. The results indicated an 86.4% likelihood that one of the designs was created using AI. Baggu then confirmed on its website that two prints—Blue Thorns and Boxer Plaid—were “AI-conceptualized” and created using gen AI tool Midjourney.

The outcome? Shoppers were vexed over the lack of transparency on using AI, expressing their disappointment on Baggu’s Instagram page.

“Using AI is unforgivable. Horrible for artists and even more importantly the environment. Hurts my heart but I will not be buying from Baggu anymore,” one user commented.

Analysis: In 2024, a Kantar survey revealed that 62% of 38,000 people aged 18 and above across 29 countries have never tried using gen AI.

“The key issue here is one of transparency, and whether brands should disclose upfront that they are using AI as part of the creative or design process,” said Ostler.