Will brands listen to their customers when it comes to AI?

Last year, Mod Op Co-Chief Creative Officer Steve O’Connell predicted that “Brands need to learn the hard lesson that people don’t like AI-created ads.” 

So far … he seems to be on track. People don’t love AI ads — at least when they can tell they’re AI-made ads — but brands keep creating them.  

A Reality Check on AI‑Generated Advertising

The disconnect between consumer sentiment and brands’ strategy isn’t accidental – it’s wishful thinking. 

“Companies will keep hoping we reach the point where consumers accept generative AI-produced spots,” Steve shared back in December. “But while the novelty of AI-generated content still exists, the amount of slop is going to grow and the pushback against it will harden.” 

To better understand this gap, we reached out to Steve to get his thoughts on AI-created ads and what separates success from failure.  

What specific qualities make AI-generated ads less appealing to consumers compared to human-created content? 

It’s the AI-generated people. I think audiences, in general, don’t love knowing something is AI-generated, but it’s seeing artificial actors and the uncanny valley that really triggers the ‘ick’ response. There’s a lack of genuine emotional depth that audiences immediately detect – the eyes are just a bit too lifeless. 

Have you seen any brands successfully leverage AI in a way that resonates with audiences, or are all attempts falling short? 

I’d venture to say brands are having success and we don’t even realize it. AI crushes it when it comes to generating inanimate objects – it’s really hard to spot. Same with food photography, which is so retouched anyway. So, I’m sure some brands are using generative AI behind the scenes, staying quiet about it, and having a lot of success. 

The biggest win I’ve seen with a client doing pure generative AI and shouting about it was Kalshi’s “World Gone Mad” spot from last year. Since the concept was about things getting out of control, it made sense to leverage AI. And that seemed to give them more of a pass from the critics. 

What do you think brands could do to make AI-generated ads more authentic or engaging? 

Anytime you’re creating something that would already be done with computers, like visual FX, generative AI is fair game. Audiences tend to accept, or ignore, AI when it’s applied to technical processes rather than creative ones. 

For creative applications, the other path brands have tried is sharing the story behind the spot, focusing on the human effort that went into the production. Although that attempt fell flat for McDonald’s with their holiday spot— it may have softened the blow  

I think brands just need to be selective and not overuse generative AI. More importantly, don’t replace human actors with technology.  

How do you see the consumer pushback against AI-created ads evolving over the next few years? 

This is so hard to know. Logic would say that AI generation will get better and better. If AI-generated video ever becomes indistinguishable from the real thing, consumers simply won’t realize it. And most probably won’t put in the effort to do the research. So, it’s very possible we’ll see a slow progression toward total acceptance, since the economics of generative AI – speed and cost savings – make it increasingly attractive to brands.  

That said, if we see a giant movement against AI usage overall, which is likely given how fast we seem to be moving without guardrails, it’s possible companies will be forced to make a pledge about their AI usage and their willingness to refrain. This isn’t likely to happen but predicting the future beyond a year or so has almost become comical at this point.  

What advice would you give companies eager to use generative AI for their advertising while avoiding consumer backlash? 

Silly company.  

Kidding. I would say start small. We’ve used AI in ways that supplement productions we’ve filmed traditionally. When we wanted to add a little something extra we thought about in the editing room. Or when we wanted to fix something we couldn’t get exactly right on set. Those use cases seem totally fine, since AI is being used to enhance something humans made. 

When it comes to generating a whole spot entirely from AI, my first suggestion would be not to make technology the story when it doesn’t have to be. Normally brands get credit for using new technology and being on the leading edge, but the reception to AI advertising has been mixed at best. Consumers care more about the message and creative, than the tools used to make it — so be transparent about your use of AI, but let the work speak for itself. 

That said, be careful if you’re going to generate actors with AI. That’s the hardest to get right and the first thing audiences will notice. 

Do you think there’s a future where consumers won’t be able to distinguish between AI and human-created ads — or will the difference always matter? 

It’s hard to imagine we won’t end up with AI-generated spots as good as the real thing. I’m not saying an AI actor will ever be as good as Daniel Day-Lewis or Viola Davis. But in most cases, generative AI does mediocrity pretty well. And it will deliver the same results for advertising.  

A lot of brands out there accept mediocrity because it’s good enough. But I’m a creative, so I live by the old saying that good is the enemy of great. I think there will always be a difference between AI-generated and human-made ads. Most brands won’t think that difference matters. Some will. And it’s almost always the brands embracing creativity, authenticity and genuine storytelling that tend to come out on top. 

Moving Forward with AI in Advertising 

The tension between AI capabilities and consumer sentiment isn’t going away anytime soon. Brands have a choice: chase efficiency at the risk of alienating audiences, or find the balance between technological innovation and human creativity. Steve’s advice points to a clear path: use AI where it enhances production, be transparent when it matters, and never compromise on the human elements that make advertising memorable. The brands that figure this out early will have a significant advantage as the landscape continues to evolve.