Renato Fernandez: How AI Is Disrupting Our Industry, and What We Can Do About It
An Interview With Cynthia Corsetti
Look at the healthcare industry. AI is transforming diagnostics and treatment planning. The need for stringent regulations is evident to ensure ethical use and prevent any potential misuse. Establishing clear guidelines and commitments to prevent weaponization is crucial. For instance, in medical AI, regulations are being put in place to guarantee patient privacy and ethical data use.
Artificial Intelligence is no longer the future; it is the present. It’s reshaping landscapes, altering industries, and transforming the way we live and work. With its rapid advancement, AI is causing disruption — for better or worse — in every field imaginable. While it promises efficiency and growth, it also brings challenges and uncertainties that professionals and businesses must navigate. What can one do to pivot if AI is disrupting their industry? As part of this series, we had the pleasure of interviewing Renato Fernandez, Chief Creative Officer of creative advertising agency, TBWA\Chiat\Day Los Angeles.
In his role as CCO, Renato oversees and drives the agency’s creative vision and output across all of TBWA\Chiat\Da LA’s client partners. Renato is a true creative mentor who inspires loyalty and effort from his teams. He is focused on building an agency environment that will continue to deliver world-class work.
His arrival to TBWA\Chiat\Day LA in 2011 saw him work with brands such as Visa, Pepsi, adidas, and most significantly, Gatorade. He was instrumental in establishing the “Win from Within” philosophy, elevating Gatorade from being viewed as a sports drink to becoming a truly iconic sports brand.
Named to Adweek’s “Top 100” list, Renato has become one of the most respected creatives in the industry by following two simple rules: Developing trusting relationships that create brave clients, and then cornering them with great work. His influence within the agency is indisputable and his leadership has led to numerous industry awards.
Thank you so much for joining us in this interview series. Before we dive into our discussion our readers would love to “get to know you” a bit better. Can you share with us the backstory about what brought you to your specific career path?
My journey into the advertising world has been quite the colorful adventure. Hailing from Brazil, I began my career as a cartoonist. The turning point came when my twin brother and I decided to venture into the world of advertising and storytelling together. We founded our own agency, pouring our creative souls into shaping brand narratives that went beyond mere transactions. After a fruitful seven years collaborating with my brother, life brought me to the United States. Landing a job at TBWA\Chiat\Day marked a pivotal moment, and from there, I diligently climbed the creative ladder.
As the Chief Creative Officer today, I firmly believe in the power of storytelling to give brands purpose and meaning, transcending the ordinary to craft narratives that resonate with people’s hearts and minds.
What do you think makes your company stand out? Can you share a story?
What sets our company apart is our commitment to Disruptive thinking and passion to uncover the soul that lives within every brand. We’re proud to offer a unique blend of small boutique intimacy and unparalleled global reach and resources. With over 50 years of pushing creative boundaries and crafting strategies that endure, we have a strong legacy in building brand platforms that last. Our focus goes beyond inventing; we unveil the soul of a brand with each piece of work, fostering a continuous narrative rather than one-off endeavors.
One standout example is our work with Gatorade. Tasked with expanding beyond the sports drink market, we transformed them into a sports brand. In a competitive landscape, we realized the key was not the external, but the internal — capturing the essence of what’s on the inside: the drive and motivation. This led to the powerful concept of “Win from Within,” positioning Gatorade uniquely in the market and allowing them to compete against larger players while staying true to their brand soul.
You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?
To be a great leader, you’ve got to be curious, my friend. Keep that flame of curiosity burning bright — it’s the secret sauce to innovative thinking. You must also always be willing to listen. I tend to call my leadership style a “democratic dictatorship” — I listen to every voice in the room, let everyone throw in their two cents, and let those insights help guide my decisions. Because when it’s time, I’ve got to make the call.
And let me tell you, complacency is the enemy. Ambition is my compass, always pointing me towards the next big thing. No matter how high I climb in my career, there’s always a fresh challenge, a new mountain to conquer. The work never ends, and honestly, I wouldn’t have it any other way. It’s the thrill of the chase, the constant pursuit of the next big goal that keeps me on my toes and the agency on the cutting edge.
So, to put it simply, my top 3 takeaways for leadership are:
- Be curious
- Make the call based on listening and learning
- Don’t get complacent
Let’s now move to the main point of our discussion about AI. Can you explain how AI is disrupting your industry? Is this disruption hurting or helping your bottom line?
AI is a game-changer, no doubt about it. It’s a force that’s both a blessing and a challenge for us in the advertising game. It’s like the invention of electricity — once you’ve got it, there’s no going back to the palace where it doesn’t exist. The genie is out of the bottle, my friend.
Now, we’re in the stage where we’ve got to figure out how to control and harness this power. We don’t want it to turn into a weapon; we want to dance with it, not against it. It’s about merging our creative skill sets with AI, making it a partner in our artistic journey.
Sure, every time a new tech rolls in, people start predicting the end of creativity. Remember when autotune was supposed to be the death knell of singing? Well, we’re still belting out tunes. AI is raising the bar, shifting the landscape of our craft and quality. Everyone’s got to get on board and learn the ropes, but it’s not just about meeting the average; it’s about leveling past it, setting a new standard.
Just like electricity changed the way we live, AI is shaking things up. Yeah, it might take away some jobs, but it’s also creating new ones — positions we didn’t even know we needed. It’s not the end; it’s a new beginning, a demand for fresh skills and perspectives. Embrace it, and we’ll ride this wave of change like the creative mavericks we are.
Which specific AI technology has had the most significant impact on your industry?
When it comes to the impact of AI on the advertising industry, we’re essentially witnessing the infancy of a major transformation. We’re currently experiencing the beta versions, with tools like ChatGPT and Midjourney paving the way for what’s to come.
One crucial aspect that’s evolving is the localization game. It’s like turning localization into a plug-and-play affair. There’s an entire industry dedicated to this, and AI is the game-changer. Imagine the potential — delivering tailored content seamlessly to diverse audiences, enhancing the connection between brands and consumers on a whole new level.
The real game-changer in the future of advertising will be intellectual property (IP) related to AI. Those brands and agencies that own proprietary AI tools will undoubtedly be ahead of the game. It’s not a matter of “if” but “when” AI becomes a crucial element in our creative arsenal.
Let’s take a cue from DJs as an analogy. They use existing tools to create entirely new sounds and beats. Similarly, our job in advertising is to leverage AI creatively, taking these tools and sculpting brand-new, groundbreaking campaigns. We’re at the forefront of a revolution, and it’s our duty to use AI to compose the next symphony of advertising success. The best is yet to come.
Can you share a pivotal moment when you recognized the profound impact AI would have on your sector?
The moment I truly grasped the profound impact AI would have on advertising was at Cannes, the heart of creativity. I found myself amidst conversations buzzing with AI. For the first time, it dawned on me that AI wasn’t just another gimmick chasing attention; it was a tool capable of propelling our industry forward at warp speed.
Cannes was like an epiphany, a realization that AI could elevate not just our presentations but push the boundaries of creativity into uncharted spaces. The untainted potential of AI unfolded before my eyes, and it was a game-changer.
It struck me that for AI to be truly transformative, we needed to move beyond superficial articulations and delve into its self-evolving capabilities. It was at that moment I understood that AI was destined to be more than a passing trend in our industry. It was poised to become a language, a part of our creative DNA. It’s not just a tool for a fleeting moment; it’s a force that evolves with us, shaping the future of advertising in ways we’re just beginning to fathom. This realization fueled my excitement for the untapped possibilities AI holds for us in the creative realm. It’s not just a tool; it’s our evolving language of expression.
What ethical considerations does AI introduce into your industry, and how are you tackling these concerns?
Some of the ethical considerations around AI that come up most frequently in our business include:
- Privacy: Advertisers must handle personal data transparently and with user consent.
- Transparency: Strive for clear explanations of AI decisions to build trust with users.
- Deepfakes and Misinformation: Ethically use AI-generated content to avoid deception.
- Job Displacement: Consider societal impacts, like job displacement, and explore mitigation strategies.
We’re constantly evolving and looking for ways to responsibly navigate these ethical considerations. It requires ongoing dialogue between all of our leaders, partners and peers. Balancing innovation with ethical considerations is crucial for trust and responsible AI use in advertising.
What are your “Five Things You Need To Do, If AI Is Disrupting Your Industry”?
1. Regulate it — Legal & Ethics:
Look at the healthcare industry. AI is transforming diagnostics and treatment planning. The need for stringent regulations is evident to ensure ethical use and prevent any potential misuse. Establishing clear guidelines and commitments to prevent weaponization is crucial. For instance, in medical AI, regulations are being put in place to guarantee patient privacy and ethical data use.
2. Ownership of Proprietary Content:
In the realm of content creation, the lack of clarity in AI ownership hampers its full embrace. Consider a scenario where a creative agency develops an AI-generated campaign. There’s a pressing need to ensure proper accreditation through copyrights and watermarks. Brands and agencies should actively work on defining and safeguarding ownership rights to encourage more widespread adoption of AI in content creation.
3. Learning AI — Upskilling Creative Directors:
To fully leverage AI, we need to upskill. Picture a scenario where a creative director, traditionally focused on human-centric creativity, now needs to understand the nuances of AI-generated content. Providing avenues for continuous learning and upskilling is essential.
4. Intellectual Property (IP) — Creating Unique Work:
Brands and agencies crafting their own AI tools exemplify the shift toward proprietary AI. Imagine an advertising agency creating a unique AI algorithm for personalized ad targeting. This not only gives them a competitive edge but also establishes a distinct identity. The race is on to own the AI tools that will define the future of advertising, and this pursuit of unique intellectual property is a key strategic move.
5. Optimize Talent and Structure:
As AI becomes an integral part of the advertising landscape, talent needs to adapt. Consider an agency restructuring its teams to blend traditional creative roles with AI specialists. There’s a need to optimize the talent pool, ensuring a harmonious integration of AI expertise. It’s about being lean, adaptable, and embracing the change that AI brings to the industry.
What are the most common misconceptions about AI within your industry, and how do you address them?
Some myths or misconceptions about AI in advertising are that:
- AI Replaces Human Creativity: People think AI can totally replace human creativity. But I actually think it has the potential to do the opposite — AI boosts our creativity, doesn’t take over. It’s all about using AI as a tool to enhance our own creativity.
- AI Causes Mass Job Losses: There’s been lots of talk of AI taking over jobs within our industry. While some tasks might go autopilot, new roles will start to open up. Human skills are still the secret sauce. I always say, AI still needs a Creative Director.
- AI Is Completely Objective: Think AI is like a robot judge? Not quite. AI can inherit biases, so we need to keep an eye out for fairness and ethics.
Can you please give us your favorite “Life Lesson Quote”? Do you have a story about how that was relevant in your life?
One life lesson quote that resonates with me is from Marcello Serpa at BBDO Brazil: “Always work for people that you admire.”
In our world of business, opinions and tastes play a crucial role. So, it’s essential to align yourself with people whose taste and judgment you truly respect. Choosing to work for someone you genuinely admire goes beyond the pursuit of a mere raise or promotion. It becomes a guiding principle for a more fulfilling career. By prioritizing admiration for your mentors and leaders, you’re not just climbing the corporate ladder; you’re on a journey towards personal and professional fulfillment.
You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)
If I could start a movement, it would be all about paving the way for the next generation of creative leaders, especially those facing challenges similar to what I encountered coming from Brazil. I want to break down barriers, offer mentorship, and create opportunities to make their journey smoother. By championing diversity and inclusion, we can ensure that everyone, regardless of their background, has a fair shot at thriving in the creative industry. Let’s open doors and empower the next wave of talented leaders!
How can our readers further follow you online?
Agency Profiles
Renato Profiles
Thank you for the time you spent sharing these fantastic insights. We wish you only continued success in your great work!
