Prediction market Kalshi is facing criticism after creators alleged the company used generative AI to replace their likenesses with white men in unauthorized advertisements. Kalshi has since stated it has ceased using AI-generated content depicting people and is reviewing its relationship with the unnamed agency responsible for the ads.
This incident highlights a critical vulnerability in the creator economy where generative AI can be used to bypass traditional licensing fees and talent agreements. For the streaming and advertising ecosystem, it signals an urgent need for standardized digital watermarking and clearer legal frameworks regarding the commercial use of AI-altered likenesses. The situation also underscores a persistent racial pay gap, as minority creators are disproportionately targeted for unauthorized digital replacement. Industry observers should watch for new litigation or platform-level policy updates that specifically address the 'race-swapping' of influencer content in programmatic advertising.
Prediction market Kalshi is facing backlash after YouTubers Elliot Choy and Pushpek Sidhu alleged the company used generative AI to replace their likenesses with white men in advertisements. The incident highlights critical vulnerabilities in the creator economy, raising urgent concerns regarding unauthorized digital replacement, licensing ethics, and racial representation in advertising.
YouTubers Elliot Choy and Pushpek Sidhu alleged that Kalshi used generative AI to replace their likenesses with white men in advertisements, using their original backgrounds, props, and dialogue without compensation.
Kalshi has suspended all AI-generated content featuring people and is currently reviewing its relationship with the external agency responsible for the disputed advertisements.
Kalshi confirmed that the disputed advertisements featuring AI-generated depictions of humans were four months old.
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