Turn on your television or scroll through Instagram, and you might notice something slightly different in the faces promoting products and services like health insurance or sharing a family holiday meal. They look perfect and flawless, perhaps too perfect. But you are likely looking at pixels, not people.
Recently, I saw an advertisement for Star Health Insurance, which used AI-generated visuals. This is just a shifting business trend in advertising, with more and more brands relying on Artificial Intelligence (AI). This shift is not just a new visual trend; it is completely changing how the advertising industry works and moving from actual physical production sets to digital render farms.
Why AI in Advertisements?
Advertising is a billion-dollar industry estimated to reach over USD 100 billion by 2034, from USD 35.4 billion in 2025, growing at a CAGR of roughly 31%. Using AI in advertising offers
- Cost efficiency
- Speed of Production
- Elimination of Reshoots
Why Everyone Is Relying on AI in the Advertising Industry?
While it is fair to say the advertising industry often suffers from a fear of missing out (FOMO), the current race to adopt AI is not just about hype; it is driven by the desire for concrete, competitive advantages that are already proving to be beneficial.
Hyper-Personalization at Scale is essentially the ultimate goal for modern marketing. Back in the day, a company would create one advertisement and show it to millions of people. Now, with the power of AI, they can effectively create millions of unique ads for those same millions of people. The AI technology lets brands take a single digital human (an avatar) and generate thousands of video variations.
Companies can change the language, the product, or even the setting to perfectly match the individual viewer’s profile. Let’s say someone watching in Mumbai could see the ad in Marathi, while the very same actor appears to be speaking perfect French to a viewer in Paris.
The “Always-On” Content Engine: Social media platforms constantly churn, and their algorithms demand a non-stop supply of new content. It is simply impossible for human creative teams to physically produce the sheer volume required to stay visible on platforms like Instagram, TikTok, and YouTube all at once.
This is where AI plays a key role, providing a production capability that is “always on” and never gets tired. This technology lets brands consistently fill users’ feeds with quality content without exhausting their human creators.
AI in Advertising: Real-World Examples
Star Health is not just a single example. There are a lot of brands using an AI-generated version of advertising. For instance, take Coca-Cola that released a fully AI-generated version of their classic “Holidays Are Coming” truck commercial.
Under Armour used artificial intelligence (AI) to create a dynamic sports commercial featuring boxer Anthony Joshua, mixing existing footage with AI generation to create a new narrative without a new shoot.
In essence, the age of the “Synthetic Ambassador” has truly begun. Even though nothing can replace human creativity and emotional connection, the way we actually create advertising is becoming more and more digital.
For brands, AI enables them to achieve greater results with fewer resources, meaning more content, in more languages, and with deeper personalization, all for less time and money. As AI keeps getting better, the distinction between what is real and what is generated will completely fade away. At that point, consumers will judge content not by how it was produced, but simply by how it makes them feel.
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Good insights