25 Jan 2026- Generative AI is rapidly entering advertising—lowering costs and speeding production—provoking mixed audience reactions, industry adoption by major brands, and a countermovement favoring analog, handcrafted ads.
Generative AI is already turning up in commercials and marketing, and The Verge warns 2026 could be the year AI-made ads become pervasive. Advertisers are chasing speed and cost savings: a primetime Kalshi spot created in two days with Google’s Veo 3 reportedly cost $2,000. Industry surveys back the rush — Marketing Week reported over half of 1,000 brand marketers used AI in creative campaigns in 2025, and the IAB projected generative AI might be used in about 40% of all ads by 2026.
Audiences are reacting unevenly. Research cited by The Verge found humans can detect AI-generated media only about 50% of the time (ACM), while Kantar’s testing showed many viewers didn’t notice Coca‑Cola’s AI holiday ads — though Kantar also found stronger (often negative) emotional reactions when AI signals were obvious. Online communities like r/AiSlopAds have formed to shame low-quality examples.
Major brands and agencies — Google, Microsoft, Amazon, Meta, Nvidia, Nestlé, Mondelez, Coca‑Cola, ABM BBDO, and Wieden+Kennedy — are adopting AI in production. The Verge highlights a countermovement too: some brands (Aerie, Polaroid) explicitly reject AI and lean into analog imperfection as a differentiator, while creatives predict a renewed appetite for hand-crafted, imperfect work as AI-generated content homogenizes advertising.