Key facts
- Kalshi is facing backlash after creators accused it of using their videos for AI ads and altering their likeness.
- Creator Elliot Choy posted side-by-side comparisons showing similarities between his video and a Kalshi ad.
- Choy's ad depicted a man resembling him moving into an apartment, with his computer and books in the background.
- Kalshi stated the ad was about four months old and made by an agency, and that it no longer uses AI-generated content depicting people.
- The company is reviewing its relationship with the agency that supplied the video.
- Creator Pushpek Sidhu reported a similar experience with a Kalshi ad replicating his video content with a different person's likeness.
Kalshi is facing significant online criticism after content creators accused the prediction market platform of using their videos for advertisements without permission and altering their appearance. Creator Elliot Choy posted a comparison of his video, depicting him moving into his New York apartment, with a Kalshi ad that he claims used his content and made his face appear white.
A Kalshi spokesperson stated that the ad was approximately four months old and was produced by an agency. The company has since said it no longer uses AI-generated content that depicts people and is reviewing its relationship with the agency, though it declined to name the agency.
This incident highlights the ongoing challenges faced by businesses in balancing the cost-saving benefits of AI with potential consumer and creative partner backlash. The use of AI in advertising has become increasingly common, with Resemble AI CEO Zohaib Ahmed noting that about 9% of ads across various industries contain generative AI. Ahmed explained that such ads can be created by using existing video content and swapping faces, a process that raises ethical concerns about repurposing someone else's work without consent.
Kalshi itself has a history of controversy, having grown into a multibillion-dollar business by allowing retail traders to bet on various outcomes. The company has faced numerous lawsuits and regulatory scrutiny, with some state regulators arguing it operates as an unlicensed gambling operation, a claim Kalshi denies.
Choy is not the first creator to raise concerns about Kalshi's advertising practices. Pushpek Sidhu, a content creator from Toronto, shared a similar experience in June, stating that a Kalshi representative had reached out for a collaboration but he never heard back. Sidhu later saw an ad that closely mirrored his own video content, including script and gestures, but featured a white man in place of himself.