The news: Coca-Cola is putting out another AI-generated holiday advertisement, its second after an AI ad campaign last year that drew mixed reactions from audiences.

• The company again worked with Secret Level to create the ad, the same AI studio as last year. The new ad features only animals and a single AI-generated person, a step away from last year’s ad, which featured several AI-generated human characters.
• Coca-Cola believes that AI tech has evolved enough within the past year to garner a different response from audiences; Global VP and head of genAI Pratik Thakar said“the craftsmanship is ten times better” this year.

Why it matters: Coca-Cola is one of the largest brands worldwide by brand value. Such a massive AI push reflects the broader trend ofAI content becoming increasingly normalized, indicating a future where AI-generated ad campaigns become more mainstream.

And while Coca-Cola might be the biggest name to create ads with AI on such a large scale, other brands are exploring the trend:

• Kalshi used genAI to create a viral NBA Finals ad in two days for under $2,000 using Google and OpenAI tools. The campaign skyrocketed past 3 million views and was produced entirely with AI tools.
• Brands like Toys R Us are also jumping on the trend, unveiling a genAI ad earlier this year at Cannes that was created entirely with OpenAI’s text-to-video tool Sora.

What audiences think: Brands may be pushing into AI, some consumers remain skeptical toward brands that use the tool too heavily.

• Almost two-thirds (65%) of US consumers are uncomfortable with AI-generated ads, indicating significant resistance to this technology in advertising.
• Over 30% of consumers across age groups state that knowing an ad is AI-generated makes them less likely to choose a brand, a sentiment that is especially prevalent among consumers over 65 (42%). Only 12% of consumers across age groups are more likely to choose brands that use AI-generated ads.