Tunic publisher claims TikTok ran 'racist, sexist' AI ads for one of its games without its knowledge

Engadget

by Matt Tate

February 20, 2026

AI-Generated Deep Dive Summary

Indie game publisher Finji has accused TikTok of altering ads for its games using generative AI without its knowledge or consent. The company, known for popular titles like *Tunic* and *Night in the Woods*, discovered modified ads featuring a "racist, sexualized" portrayal of one of its characters. Despite having AI features turned off in its ad settings, Finji claims TikTok's system automatically generated and altered the content, leading to significant reputational harm. Finji CEO Rebekah Saltsman first learned about the issue after fans alerted her to the modified ads, which appeared as if they were official. The offending ad for *Usual June* depicted the protagonist in a bikini bottom with exaggerated features, starkly contrasting the character's appearance in the game. TikTok initially denied using AI but later acknowledged the problem and claimed it was part of an experimental "catalog ads format" aimed at improving campaign performance. TikTok explained that this format combined carousel and video assets to create multiple ad variations, with AI optimizing elements like visuals and music. Despite having both "Smart Creative" and "Automate Creative" features turned off, Finji's campaign still utilized the catalog format unknowingly. Saltsman expressed frustration over TikTok's lack of accountability, emphasizing the need for clearer guidelines and apologies from the platform. This incident highlights critical issues surrounding AI-driven ad systems and their potential to misrepresent content creators. For tech-savvy readers, it underscores concerns about transparency in AI tools and the importance of user control over creative output. The case also raises questions about how platforms like TikTok handle generative AI features, particularly when they lead to unintended consequences for advertisers.

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Originally published on Engadget on 2/20/2026