AI Models: How Brands Can Navigate Ethical and Legal Risks

Image: H&M

AI Models: How Brands Can Navigate Ethical and Legal Risks

The models on a rising number of companies’ websites may be a bit different than in the past, as digital clones – driven by advances in artificial intelligence and web3 technologies – are transforming fashion marketing. Always available and adaptable to any setting, ...

May 27, 2025 - By Luana Carcano

AI Models: How Brands Can Navigate Ethical and Legal Risks

Image : H&M

key points

AI digital twins are reshaping marketing by enabling brands to create lower-cost, customizable campaigns.

These AI-centric efforts raise ethical and legal concerns around consent, compensation, and representation.

As the technology advances, companies must implement transparent, inclusive, and legally sound frameworks.

Case Documentation

AI Models: How Brands Can Navigate Ethical and Legal Risks

The models on a rising number of companies’ websites may be a bit different than in the past, as digital clones – driven by advances in artificial intelligence and web3 technologies – are transforming fashion marketing. Always available and adaptable to any setting, these AI-generated figures – crafted, in many cases, using high-tech body scans of real-life models – enable brands to create immersive, cost-effective campaigns that resonate with today’s digital-first consumers. 

The use of digital twins of in-demand models stands to reshape the $2.5 trillion modeling industry and the market for fashion more broadly. For one thing, AI-generated avatars and digital clones enable brands to cut production costs and accelerate campaign development. As a result, companies, such as Levi’s and H&M, are partnering with AI companies to integrate these virtual personas into their advertising campaigns and marketing strategies. 

Digital Twins

Digital twins – which refer to virtual replicas of real people – are gaining traction in marketing to enhance personalization, streamline content creation and deepen customer engagement. In the fashion world, they provide a means to maintain a sense of human connection while using AI for precision and volume purposes. Fast-fashion retailer H&M recently introduced AI-generated digital twins of real-life models for advertising and social media content. Positioned as an aid rather than a replacement for human talent, the initiative ignited industry-wide debate. 

While the brand highlights the advantages, including lower production costs and faster catalogue development, some critics have raised ethical concerns regarding representation and transparency.

These digital twins fall into the category of “front-of-camera” tools: static avatars used in visual content without independent personas or social media presence. Unlike virtual influencers, they do not interact with audiences or build followings. Instead, they function strictly as visual stand-ins for traditional models, who are compensated for the use of their likenesses, similar to conventional campaigns. As these avatars do not speak, endorse or engage directly with consumers, they remain subject to traditional advertising regulations – not influencer marketing laws.

Digital models are used for operational efficiency: testing and refining creative strategies before rollout, reducing costs and potentially offering immersive digital experiences to enhance customer connection and brand loyalty.

Authenticity & Other Challenges

In July 2024, fast-fashion retailer Mango took things a step further and launched its first advertising campaign featuring purely AI-generated avatars to promote a limited-edition collection. The Spanish fast fashion company touted the campaign as “part of the Earn lever of [its] Strategic Plan 2024-2026, which aims to create value through technological development, data management and operational excellence.” According to Jordi Alex, Chief Information Technology Officer at Mango, the initiative reflected the company’s “continued commitment to innovation and being on the cutting edge in the fashion world,” noting that AI is “a technological revolution that presents great opportunities that should act as a co-pilot to extend the capabilities of our employees and further amplify our creativity.” 

Commentators were less enthusiastic about the campaign, with social media users characterizing the ad as “false advertising” and expressing doubt about the AI-generated images’ ability to accurately depict the clothing and the way it fits.  

Ethical, Strategic Considerations

AI-generated influencers and digital twins, alike, introduce numerous ethical and legal challenges. Among other things, these innovations raise difficult questions about the displacement of human talent, including models, make-up artists, hairstylists and photographers, and broader implications for creative industries.

Key concerns center on consent and compensation. The unauthorized use of an individual’s likeness, even in digital form, poses a risk of exploitation and underscores the importance of clear standards and protections. The legal landscape regarding image rights and intellectual property is still evolving, which makes compliance both essential and complex. At the same time, as the lines between reality and digital fabrication blur, brands risk eroding consumer trust. The authenticity that audiences value can be undermined if AI-generated content seems deceptive or inauthentic. Companies must tread carefully, balancing innovation with transparency.

Diversity is another critical issue. While AI offers customization, it can also perpetuate biases or create an illusion of inclusivity without genuine representation. As the use of AI proliferates, ensuring that digital models support, rather than hinder, meaningful advancement in representation will be essential. 

Ultimately, brands will need to implement responsible/ethical frameworks to ensure that AI enhances creativity while maintaining integrity, inclusivity and legal accountability. To ensure ethical integration, transparency is crucial. Brands must clearly disclose when digital models appear in campaigns. These digital representations should encompass a wide variety of demographics to genuinely promote inclusivity and engage with a broader audience.

Establishing ethical and legal safeguards is equally important. Creating digital clones requires explicit consent and careful attention to intellectual property rights. Without clear guidelines and permissions, brands risk violating privacy, misusing likenesses, and facing legal repercussions.


Luana Carcano is a Lecturer in the Beedie School of Business at Simon Fraser University.

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