From the explosive exploration and application of generative AI across society, to bank failures and financial upheaval, inflation and more, 2023 was the year that surprised no one and everyone at the same time while keeping us all wondering what might follow.

This was also a year where proper messaging, or the failure to provide proper messaging, played into the headlines at a level we hadn’t seen since the height of the pandemic.

Introducing:  AI

Across the calendar, 2023 was the year where everyone wanted to talk about technology, specifically artificial intelligence. From an ill-considered public discussion about using AI to advance diversity at Levi’s to the very public spectacle that was the firing and rehiring of Sam Altman at OpenAI — and all manner of speculation of how AI would improve nearly every business — poor messaging drove headlines and cost their brands.

In March, Levi’s announced plans to use AI-generated clothing models to allow customers to see clothes on models who looked more like them. The initiative was met with backlash for failing to include in their messaging the platforms to find the AI models or information on how to customize the models, as well as what the change would mean for human models. The company was forced to issue a follow-up statement clarifying the initiatives and explaining, among other things, that it was not meant to substitute real action on diversity, equity and inclusion at the company.

Of course, the messaging around Sam Altman’s firing and rehiring at OpenAI made our list of messaging gone wrong in 2023. First, the board of directors of OpenAI fired Altman with a public announcement claiming he was “not consistently candid in his communications with the board,” and that the board “had no confidence in his ability to exercise his responsibilities.” After Microsoft swooped in to try to pick up Altman and his colleagues, pressure from employees and investors mounted, prompting OpenAI to post on X that Altman would be returning as CEO.

It seemed not a day passed this year when the public square did not feature a discussion about the digital world. And, regardless of your technological interest or acumen, few can honestly say they were not aware of or participating in the buzz around AI.

Failing Fabulously

Meanwhile, the financial sector was rocked when a few banks formerly ranked as among the 30 largest in the US imploded despite reassurances from business and government officials. In fact, one of the failed banks committed financial suicide due largely to poor messaging. Silicon Valley Bank, in the wake of rising inflation and interest rates, issued a statement in March that made no mention of its financial strength and instead focused exclusively on losses, manifesting an old-fashioned bank run that effectively killed the institution.

Additionally, theories and speculation on inflation and a potential recession offered real-world consequences for the global economy. Notes from a March meeting of the US Federal Reserve didn’t mince the words of Fed economists, noting bank failures were likely to cause “… a mild recession later this year.” This set off a chain of events that saw Silicon Valley leaders like Google, Meta and others publicly trim headcounts while other industries took a long, wait-and-see approach to spending in 2023.

The Value of Words

In short, buzz and speculation that included the active participation of brands and businesses through their messaging not only influenced public perception, but that messaging also drove consumer decision-making.

In a world increasingly attuned and sensitive to business and industry messaging, 2023 offered a bevy of examples too numerous to mention here that reinforce the adage, words matter. One of the key takeaways from this as we look to 2024 and beyond is that minds, as well as markets, can move more dramatically than ever based on how messaging is conceived and delivered. Brands and nonprofits will do well to apply this lesson to their new year planning. And, of course, Kimball Hughes PR is always here to help craft as well as pressure-test the words and content that shape the perceptions of those audience(s) most important to your organization.