Get ready for the AI ad-pocalypse

Television commercials once required substantial budgets and creative teams, but a bizarre NBA finals ad for Kalshi that cost just $2,000 and took two days to create using AI signals a seismic shift in advertising. More than half of brand marketers now use artificial intelligence in their campaigns, with studies projecting AI will appear in 40 percent of all ads by 2026. While humans can only accurately identify AI-generated content about 50 percent of the time, the telltale signs are increasingly obvious — faces that morph unnaturally, people who move in eerie ways, or visuals that shift inconsistently.

"The vast majority of people didn't notice the ad was AI-generated," says Kantar managing director Dom Boyd about Coca-Cola's controversial AI holiday campaign, despite clear on-screen disclosures. Yet consumer reactions remain mixed, with stronger emotional responses to AI ads that are typically negative.

The economics are undeniable when comparing AI's efficiency to traditional productions like Ridley Scott's iconic Apple "1984" commercial, which cost $900,000 in the 1980s. Some brands are pushing back — Aerie's promise not to use AI became their most popular social media post, while Polaroid playfully advertises that "AI can't generate sand between your toes." As creative agencies embrace automation for cost efficiency over creativity, the industry faces a fundamental question about what makes advertising memorable.