Independent game publisher Finji, known for Night in the Woods and Tunic, said TikTok used generative AI to alter its advertisements without permission, producing what the company described as racist and sexualized imagery of a character from its upcoming game Usual June. Finji co-founder and CEO Rebekah Saltsman said the company learned of the modified ads after fans sent screenshots, despite Finji having AI ad features switched off on its TikTok account.

One altered ad depicted Usual June's protagonist, a Black woman, wearing a bikini bottom with exaggerated proportions and thigh-high boots, an image that does not match any official art for the game, which shows the character in shorts and sneakers.

When Saltsman contacted TikTok support, the platform initially said it found no evidence that AI-generated assets or slideshow formats were used, despite having been sent a screenshot of the altered image. In a later exchange, TikTok told Saltsman it was "no longer disputing whether this occurred" and acknowledged what it called the unauthorized use of AI, the sexualization and misrepresentation of the character, and resulting commercial and reputational harm to the studio.

TikTok said the ad ran through a "catalog ads format" tied to an automated campaign feature, though Saltsman said Finji had that option turned off, which a TikTok agent later confirmed. TikTok told Saltsman the matter could not be escalated further and declined to comment when contacted by IGN, which first reported the story. TikTok had not issued a public apology or outlined prevention steps as of the report.