Coca-Cola employed a surprising agent to complete millions of outreach initiatives in the Saudi Arabian market, but worries about digital privacy abound.
What's happening?
As detailed by AdAge, Coca-Cola relied on an autonomous AI agent to execute approximately 8 million actions over a two-month promotional campaign in Saudi Arabia.
The agent scoured social sites such as TikTok, LinkedIn, and Pinterest and identified consumers who liked fast food by examining users' posts — along with geographic coordinates, device type, and demographic data, which are available via application programming interfaces.
By the end of the campaign, the AI agent had delivered 828,000 coupon ads for discounted Coke products without the marketing team. Coca-Cola did not confirm to AdAge how many coupons had been claimed.
Why is this important?
The AI agent's 24/7 ability to analyze data and complete tasks extended Coca-Cola's reach beyond what it would have accomplished in the same time frame with a human-only team. AdAge writes: "AI agents have shot to the top of marketers' wish lists thanks to their ability to save organizations significant time and money."
However, the short-term gains may not be the long-term cost. For one, AI critics fear it could lead to significant job losses and ultimately economic collapse. Industry watchers say AI agents could be a security nightmare and should be trained to ensure they adhere to brand guidelines and agreed-upon privacy frameworks.
"Agents need to be onboarded just like HR onboards employees," said Nicole DiNicola, global VP of marketing for software platform Smartcat, which was not part of Coca-Cola's campaign.
Existing AI technologies are also notoriously energy-hungry. In as little as five years, the data centers that power them could be responsible for 20% of global electricity use, straining electrical grids, per the Penn State Institute of Energy and the Environment.
While more and more data centers are embracing clean energy, the United States and China — the largest data-center markets — still heavily rely on polluting dirty fuels that are associated with millions of premature deaths every year, as Bloomberg reports.
What can be done about this?
Coca-Cola has incorporated biodegradable materials into some of its packaging and invested in community cleanup programs.
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Absolutely 👍 Yet critics say it has a long way to go before it lives up to its sustainability promises. Coca-Cola regularly tops the list of the world's worst plastic polluters and continues to rely on single-use plastics with questionable recyclability.
As for AI, it likely isn't going anywhere. Yet, Coca-Cola at least appears to be aware that things could go sideways if it doesn't use the technology wisely. AdAge reports that the beverage giant has teamed up with Adobe to transform its brand guidelines into adaptable assets for more AI content.
It remains to be seen if consumers will even have a taste for more AI content, though. This winter, Coca-Cola's "soulless" AI-driven holiday commercial sparked widespread backlash that prompted the company to issue a statement in which it defended its use of AI.
As an iconic brand, Coca-Cola may be relying on its name recognition and the sentimentality of its products to weather any storms. However, consumers still have the power of their dollars.
In the past, Coca-Cola has discontinued underperforming items. Supporting products with plastic-free packaging is one way consumers can encourage eco-friendly action.
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