AI-Generated Video Is Here—Is OpenAI’s Sora Expansion a Revolution or a Risk?

Deepfakes, marketing deception, and EU regulations—how AI-generated video is shaking up the ad industry

The AI Takeover of Video Marketing Is No Longer Theoretical

Marketers love a good trend. Remember when the term "digital transformation" became the buzzword that every firm wanted to incorporate into their strategy? Or when companies eagerly sought to hire a "Chief Digital Officer" to guide them through the evolving digital landscape? AI-generated video is shaping up to be the next big thing, and OpenAI’s Sora, launched in December in the U.S., has now expanded into the UK and EU.

With Sora, advertisers can now generate entire commercials from a text prompt. No cameras, no actors, no fancy production crews—just AI spinning words into visuals. That’s a marketer’s dream and a media ethics nightmare. Because if AI can fabricate realistic video content, what’s stopping brands from rewriting reality? And with Sora now launching in the UK and Europe, the EU AI Act could be the only thing standing between innovation and outright deception.

So, is this the start of a creative renaissance or a digital dystopia? Let’s get into it.

What Is OpenAI’s Sora, and Why Should Marketers Care?

If you haven’t been paying attention, Sora is OpenAI’s new AI-powered text-to-video generator. Think of it as ChatGPT but for visual storytelling. You type in a detailed prompt—say, “A Black woman in Brooklyn running her AI-driven fashion startup from a rooftop café at sunset”—and Sora spits out a realistic, moving video that could pass for real footage.

Sounds like magic, right? That’s because it is… until you realize what happens when this tech gets into the wrong hands. Or, let’s be honest, into the hands of brands desperate to go viral.

How Brands Might Use Sora

  • AI-generated commercials: Need a sleek, high-quality ad without a Hollywood budget? Sora can make that happen.

  • Hyper-personalized marketing: Imagine brands crafting ads that look like they were made just for you—because they actually were.

  • Synthetic influencers & models: Why pay real people when AI-generated faces can do the job?

This is powerful, but power unchecked? That’s where things get messy.

The Ethical Crossroads of AI-Generated Video

If the words “deepfake marketing” don’t immediately make you uneasy, let’s put it in context. We’re talking about AI that can fabricate events, create nonexistent people, and generate entirely fake brand narratives.

1. When Does AI Marketing Become Deceptive?

Marketing has always been about curation—airbrushing, strategic lighting, a little Photoshop here and there. But AI takes it up several notches. If a skincare brand can generate an “authentic” testimonial from a person who doesn’t exist, is that fraud? What happens when a fast-food company creates a celebrity endorsement with a digital clone of someone who never signed off on it?

Brands already struggle with transparency. AI just made that struggle a crisis.

2. AI’s Potential to Spread Misinformation

In an era of misinformation, AI-generated video adds fuel to the fire. A Harvard Kennedy School report on AI and misinformation warns that deepfake technology could be weaponized for corporate and political propaganda. We’ve already seen AI-generated images distort public perception—video takes it to another level.

If AI can create “news” that never happened, what’s stopping a brand from fabricating viral moments? Or worse, what’s stopping bad actors from using AI to manipulate public trust?

3. Who Owns AI-Generated Content?

If Sora generates a commercial, who owns the rights? OpenAI? The brand? The AI itself? (Okay, not the AI, but you get the point.) Legally, AI-generated works without human input aren’t copyrightable. If a human significantly shapes the output—through prompts, edits, or creative decisions—they may claim ownership. Recent court rulings also suggest that AI models trained on copyrighted data could raise legal risks. With regulations evolving, brands should document human contributions to secure ownership and avoid disputes over AI-generated content.

The EU AI Act vs. OpenAI’s Sora: A Showdown in Europe

Now, here’s where things get interesting. Unlike the U.S., where tech companies pretty much self-regulate (insert skeptical side-eye here), the European Union is not playing games when it comes to AI oversight.

Enter the EU AI Act, the first serious attempt at regulating artificial intelligence. The Act categorizes AI tools into risk levels—unacceptable, high, limited, and minimal—and Sora is likely hovering between high and limited risk, meaning OpenAI will need to tread carefully.

Key EU AI Act Rules That Could Impact Sora:

  • Transparency Requirements: AI-generated content must be clearly labeled. No sneaky deepfake ads allowed.

  • Bans on Manipulative AI: Any AI tool that deceives or manipulates people? Not happening in the EU.

  • Liability for AI-Generated Misinformation: If AI-generated videos mislead consumers, companies could be held legally accountable.

This means that while Sora might be the Wild West in the U.S., in Europe, it’s going to have some regulatory fences around it.

Can Marketers Use AI Ethically? Here’s How.

Listen, I’m not saying AI-generated video is inherently evil. But if brands want to use Sora (or any AI tool) without tanking consumer trust, they need to establish ethical guardrails.

1. Disclose AI-Generated Content

Let’s be real: if a brand’s content is AI-generated, people have the right to know. Transparency builds trust. No deceptive deepfakes, no misleading endorsements.

2. Prioritize Human-AI Collaboration

AI should enhance creativity, not replace human storytellers. Smart marketers will use AI as a tool, not a substitute.

3. Stay Ahead of AI Regulations

The EU is leading on AI laws now, but the U.S. won’t stay behind forever. Brands need to stay informed on legal and ethical AI practices—or risk getting hit with lawsuits.

The Future of AI Video Marketing: Proceed with Caution

Sora is here, and AI-generated video isn’t going anywhere. Marketers will either use it to revolutionize storytelling or to destroy consumer trust—the choice is theirs.

The question isn’t whether AI video will shape marketing; it’s how brands will use it—and whether regulators (and consumers) will let them get away with crossing the line.

Because the future of marketing is AI-powered—but let’s make sure it’s not ethically bankrupt.

Sources & Further Reading

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