The Rise of AI-Generated Commercials: What It Means for 2026

The MNTN Team | 13 Min Read

The Rise of AI-Generated Commercials: What It Means for 2026

Insights

TL;DR

Quick Takeaways

What marketers need to know about AI-generated commercials.

  1. AI-generated commercials are becoming mainstream across modern advertising workflows.

  2. Brands use AI to accelerate production, testing, localization, and scale.

  3. Human oversight strengthens storytelling, consistency, cultural nuance, and trust.

  4. Smaller brands especially benefit from lower costs and faster execution.

  5. The future likely blends AI efficiency with human creativity.

The advertising landscape is shifting fast, and commercials generated with artificial intelligence (AI) are moving into the mainstream. TV ads built with generative AI can offer brands of all sizes numerous advantages, particularly small brands on a budget. But as this technology rapidly takes hold, marketers face real questions about authenticity, creative integrity, and consumer trust.

This leaves us with several unanswered questions. Do the pros of AI-generated commercials outweigh the cons? What does the data and consumer feedback actually suggest? Which demographic group is more likely to be repelled by AI video? Let’s find out.


What Are AI-Generated Commercials?

AI-generated commercials are video ads built using artificial intelligence to automate or assist core creative tasks. These can range from simple scriptwriting and editing to more advanced tasks such as narration and visual design.

Unlike traditional ad production, AI video generators can create complete, ready-to-edit video ads from just a few inputs. Now, obviously, this can greatly reduce the time and production resources required to get a creative project off the ground. But it also introduces a new element that you didn’t have to consider when making commercials in the past: Does this look and feel human?

Regardless of the questions, many of which have answers that are still in progress, adoption of AI video in digital marketing continues to rise.

2025 51%

GenAI Reaches Half of Video Buyers

51% of U.S. digital-video ad buyers used generative AI for video creative in 2025.

2026 62%

GenAI Adoption Climbs Further

62% of U.S. digital-video ad buyers used generative AI for video creative in 2026.

Change: up 11 percentage points year over year.

Source: Business Outcomes Are Just the Beginning, According to IAB Digital Video Ad Spend & Strategy Full Report

Why AI-Generated Commercials Are on the Rise

The surge in AI-generated content isn’t random. It’s rooted in real market pressures.

  • Budgets are under pressure. Cost efficiency is one of the top advantages cited by ad executives, as AI video generators make creative more accessible to smaller brands.
  • Speed is non-negotiable. In the past, pivoting your video market strategy felt like turning a battleship. Not anymore. AI helps teams create, test, and scale creative in a way that was unimaginable just a few years ago.
  • Creative tech is improving. You don’t necessarily need to nail the video generation on first prompt. You’ve got more wiggle room now to edit and revise creative versions, visual styles, and contextual relevance as technology improves.
  • Small brands want a seat at the table. With the barriers to entry breaking down, small and mid-tier brands are adopting generative AI faster than the largest brands.

The appeal isn’t just theoretical. The numbers below demonstrate that it’s not a fad. It’s a movement.

  • 64%

    Cost Efficiency

    Advertising executives cited cost efficiency as a benefit of AI in advertising (the top-cited benefit in the 2026 study).

  • 70%

    Faster, More Efficient Marketing

    CPG marketing leaders expected generative AI to help them work faster or more efficiently.

  • 61%

    Creative Innovation

    Advertising executives cited creative innovation as a benefit of AI in advertising.

  • 96%

    Not Satisfied With Current GenAI Use

    Small and mid-size digital-video buyers were not satisfied with their current level of GenAI use for creative ad production.

Sources: The AI Ad Gap Widens; The AI-Forward CPG Marketing Organization; Business Outcomes Are Just the Beginning, According to IAB Digital Video Ad Spend & Strategy Full Report

How Brands Are Using AI to Create Commercials

Marketers are experimenting with AI across the creative process. Even big brands have joined the push (albeit a bit slower than smaller brands): Coca-Cola used AI to reimagine its classic “Holidays Are Coming” spot for its 2025 holiday campaign, blending traditional brand themes with AI.

Not to be outdone, Nike created a 50th-anniversary piece featuring Serena Williams that used AI and machine learning to simulate a match between her 1999 and 2017 selves.

In examples like these, AI works alongside human teams to streamline and accelerate production while expanding what creative teams can create. So, it’s not entirely set-it-and-forget-it, and it likely never will be. The final human touch is what takes an ad from robotic and impersonal to an ad that resonates deeply with the target audience.

Here’s a look at how deeply brands are integrating AI into their workflows.

  • 42%

    Audio advertising

    42% of surveyed advertising executives had deployed AI creative in audio advertising.

  • 56%

    Television advertising

    56% of surveyed advertising executives had deployed AI creative in television advertising.

  • 73%

    Display advertising

    73% of surveyed advertising executives had deployed AI creative in display advertising.

  • 85%

    Social media advertising

    85% of AI-using advertisers had deployed AI creative in social media advertising.

Source: The AI Ad Gap Widens.

Advantages of AI-Generated Commercials

We’ve touched on a few of these earlier, but let’s break them down in a bit more detail.

Rapid Iteration for A/B Testing

Producing ad variations for A/B testing can take days or weeks with traditional video production workflows. Now, genAI tools can create multiple ad variants, each with different visuals, scripts, or calls to action, much faster.

The ceiling is no longer about how much budget you have for video creative. It’s now about how much budget you have for distribution (a much better place to be).

Effortless Multilingual Localization

Localization has traditionally required separate workflows for every market. Now, AI tools can translate captions, dub voiceovers, and adapt video across languages at scale. A single ad concept that you’re in love with can easily be adapted into multiple languages much faster than before.

What that means for you: Scaling globally is no longer reserved for brands with bottomless wallets.

Always-On Content Production

AI can help marketers shift from campaign bursts to more continuous content production. With generative tools speeding up the entire video production process, brands can maintain a steadier drumbeat of relevant messaging. And this consistency is exactly what you need for effective TV advertising campaigns.

  • Content ideation and production improvement: 76% Seventy-six percent of organizations reported that generative AI moderately or significantly improved the volume and speed of content ideation and production. 76%

    Content ideation and production

    76% of organizations said generative AI moderately or significantly improved the volume and speed of content ideation and production.

  • Non-creative team content creation improvement: 70% Seventy percent of organizations reported that generative AI improved content creation among non-creative teams. 70%

    Non-creative team content creation

    70% said generative AI improved content creation among non-creative teams.

Generative AI content creation improvement metrics
Metric Value
Content ideation and production 76%
Non-creative team content creation 70%
Source: 2026 AI and Digital Trends in Content Creation and Management.

Disadvantages of AI-Generated Commercials

Despite its promise, AI-generated creative has a few drawbacks. Though these disadvantages are lessened over time as technology works to resolve them.

Lack of Brand Voice Consistency

Generative AI is pattern-driven, and without clear inputs and human review, it may not always capture a brand’s voice with the nuance it deserves. That can leave output feeling off-brand or inconsistent. Even as tools continue to improve in customization, human input still matters for guiding tone, brand identity, and message clarity.

Limited Emotional Resonance

AI can replicate tone and visual styles, but emotional resonance isn’t automatic. Human creatives bring cultural context, narrative judgment, and lived experience to the process. This matters more in TV advertising campaigns designed to inspire or connect.

But again, this can largely be overcome with human oversight, detailed input, and a great prompt.

Potential Consumer Skepticism

Consumers are catching on. IAB found that 71% of Gen Z and Millennial consumers believe they’ve seen an AI-generated ad, up from 54% in 2024. And while reactions are mixed, negative sentiment toward AI-generated ads rose 12 percentage points over the same period.

Unrealistic visuals, awkward motion, or other quality issues can distract viewers and weaken an ad’s impact. When audiences feel they’re watching content built for efficiency rather than quality, it can cheapen the message and put brand trust at risk.

Now, this doesn’t mean you should avoid genAI. It just means you should be using a higher-quality AI video generator built from the ground up to overcome these issues.

  • Concern about homogeneous content: 63% Sixty-three percent of surveyed creative professionals worried that generative AI would make content more homogeneous. 63%

    Homogeneous content concern

    63% of surveyed creative professionals worried that generative AI would make content more homogeneous.

  • Appearance of Storytelling Storytelling appeared in forty-nine percent of ads in Ipsos’s broader database, compared with thirty percent of the AI-generated ads in the controlled study. 49%

    Appearance of Storytelling

    Storytelling appeared in 49% of ads in Ipsos’s broader database, compared with 30% of the AI-generated ads in the controlled study.

Concern about homogeneous content and storytelling usage in ads
Metric Value
Worried generative AI will make content more homogeneous 63%
Ads in Ipsos’s broader database using storytelling 49%
Gen Z versus Millennial reactions to AI-generated ads Paired horizontal bar chart comparing Gen Z and Millennial consumers. Thirty percent of Gen Z described AI-generated ads as inauthentic, compared with thirteen percent of Millennials. Thirty-nine percent of Gen Z felt negatively about AI-generated ads, compared with twenty percent of Millennials. Described ads as inauthentic Felt negatively about AI ads 30% 39% 13% 20% 0% 20% 40% 60% 80% 100% Share of respondents
Largest gap 19 pts

Negative sentiment

Gen Z consumers were 19 percentage points more likely than Millennials to say they felt negatively about AI-generated ads.

Inauthenticity gap 17 pts

Gen Z more likely to call ads inauthentic

Thirty percent of Gen Z respondents used the inauthentic label, compared with 13% of Millennials.

Gen Z versus Millennial reactions to AI-generated ads
Measure Gen Z Millennials Difference
Described ads as inauthentic 30% 13% 17 percentage points
Felt negatively about AI-generated ads 39% 20% 19 percentage points
Sources: The future of marketing with GenAI; AI Ads Are Good Enough — And That’s the Problem; The AI Ad Gap Widens.

AI vs Human-Created Commercials: Key Differences

The debate between AI and human-led creative isn’t binary. It’s contextual. Each approach brings distinct strengths, and for many brands, the practical model is a blend of both.

Creative Control

AI responds to what you ask. Human teams bring judgment to know what you should ask for.

While AI tools offer increasing customization, they still depend on clear inputs and human direction. Human creatives can decide when to break conventions, invent formats, and tell stories with edge and originality.

Which ads felt more creative Pie chart showing which ads felt more creative. Thirty-eight percent said human-made ads felt more creative, twenty-seven percent said AI-generated ads felt more creative, and thirty-five percent said there was no difference in creativity. The no-difference share was adjusted from the rounded 36 percent source figure so the chart totals one hundred percent. 38%Human-made ads27%AI-generated ads35%No difference
Human-made ads felt more creative38%
AI-generated ads felt more creative27%
No difference in creativity35%
Which ads felt more creative
Response Share Notes
Human-made ads felt more creative38%Rounded source figure
AI-generated ads felt more creative27%Rounded source figure
No difference in creativity35%Adjusted from the rounded 36% source figure so totals equal 100%
Source: AI Ads Are Good Enough — And That’s the Problem.

Emotional Depth and Storytelling

AI can help execute a story, but human judgment still plays a key role in deciding which stories are worth telling and how they should feel. For advertisers looking to build long-term brand equity or spark a deeper connection with their audience, that human perspective can help keep storytelling intentional rather than simply efficient.

Which ads felt more emotional Pie chart showing which ads felt more emotional. Forty-six percent said human-made ads felt more emotional, eighteen percent said AI-generated ads felt more emotional, and thirty-six percent said there was no difference in emotional impact. The no-difference share was adjusted from the rounded 37 percent source figure so the chart totals one hundred percent. 46%Human-made ads18%AI-generated ads36%No difference
Human-made ads felt more emotional46%
AI-generated ads felt more emotional18%
No difference in emotional impact36%
Which ads felt more emotional
Response Share Notes
Human-made ads felt more emotional46%Rounded source figure
AI-generated ads felt more emotional18%Rounded source figure
No difference in emotional impact36%Adjusted from the rounded 37% source figure so totals equal 100%
Source: AI Ads Are Good Enough — And That’s the Problem.

Production Timelines and Budgets

We said it before, and we’ll say it again: AI can dramatically compress video production timelines and costs. Workflows that once stretched for weeks can now be compressed into days (or hours).

That said, traditional human-led production can still make sense for marquee campaigns that demand custom craft, ambitious storytelling, or a celebrity endorsement.

It’s not an either/or thing. It’s about aligning the production approach with the marketing objective.


The Future of AI-Generated Commercials

AI-generated creative isn’t going anywhere. It’s getting faster, more capable, and more integrated into advertising workflows.

  • Expect more advanced personalization, with AI helping marketers tailor ad content based on audience and contextual data.
  • AI-assisted optimization will become more integrated into campaign workflows, while interactive and shoppable TV formats open up new possibilities for more responsive creative experiences.
  • But alongside this progress, responsible use is becoming just as important. Transparency, bias mitigation, and creative integrity will be essential as adoption grows.
  • Projected 2027 generative AI share in digital-video creative: 43% Among current generative-AI users, the share of digital-video creative using generative AI was projected to reach 43 percent in 2027. 43%

    Projected 2027 genAI share in video creative

    Among current generative-AI users, the share of digital-video creative using generative AI was projected to reach 43% in 2027.

  • Organizations prioritizing AI for more personalized customer experiences: 56% Fifty-six percent of organizations prioritized AI investment for more personalized customer experiences. 56%

    Prioritized AI for personalized customer experiences

    56% of organizations prioritized AI investment for more personalized customer experiences.

Projected generative AI use and personalization investment priorities
Metric Value
Projected 2027 share of digital-video creative using generative AI 43%
Organizations prioritizing AI for more personalized customer experiences 56%
Sources: Business Outcomes Are Just the Beginning, According to IAB Digital Video Ad Spend & Strategy Full Report; 2026 AI and Digital Trends in Content Creation and Management.

QuickFrame AI Meets Performance TV

AI-generated commercials are shrinking the distance between a good idea and a finished ad. QuickFrame AI lets teams generate complete video ads with scripts, visuals, voiceover, and music. Then, fine-tune the creative, and publish compatible work directly to MNTN Performance TV or other ad platforms.

Put that creative speed to work by developing fresh concepts, testing new directions, and getting performance-ready TV ads into the market while the idea is still relevant. Once you create your commercial, give it the screen time it deserves on Performance TV—sign up today with MNTN’s self-serve software to get started.


AI-Generated Commercials: Final Thoughts

AI-generated commercials offer speed, efficiency, and scale, but they also challenge the way we think about creativity. As the tools evolve, the smartest brands will use AI to complement, not replace, human storytelling. The future belongs to marketers who embrace both sides of the equation.

Stay Smart on All Things CTV

Get insights, must-know stats, and clever ad strategies straight to your inbox.