From image creation to scripted video, brands now have more generative AI tools than ever to produce advertising content at speed. Faster, however, does not always mean better.
Despite generative AI’s major recent improvements in quality and realism, consumer reaction has been mixed at best. In several high-profile cases, brands have learned that swapping human creation with AI outputs can lead to backlash, legal questions and long-term brand trust issues. For business owners and marketing leaders, the risks deserve careful consideration.
Consumer Wariness Around AI-Generated Advertising
One of the most viral AI ad fiascos occurred last December, with an AI-generated McDonald’s campaign in the Netherlands. Instead of creating a funny and relatable holiday message, the video drew criticism for feeling strange, cold and disconnected from the spirit of the season. Viewers voiced concerns over AI tools being used to replace creative professionals and real actors.
Public reaction highlighted a growing concern: consumers are not always comfortable with brands leaning too heavily on AI for storytelling. Poor-quality AI-generated ads that include noticeable mistakes and unrealistic elements even have a name now – AI “slop” – and the term was Merriam-Webster’s 2025 Word of the Year.
Business Insider shared a recent national survey, which found that 40% of consumers had a negative attitude toward AI-generated advertising, while only 18% had positive opinions. Thirty-six percent of respondents were neutral toward AI ads, potentially signaling uncertainty rather than enthusiasm.
When AI Characters Create Brand Risk
The McDonald’s situation exposed another risk that brands may not anticipate. An outside agency took one of the AI-generated actors from the commercial and placed that same character into a separate ad. In the new spot, the AI character criticized the original campaign while eating a competitor’s meal and making exaggerated claims about McDonald’s food quality.
The campaign was designed to be unsettling and satirical. Its purpose was to show how AI-generated actors can be reused, manipulated or placed into situations that damage brand reputation. Once an AI character exists, it can be prompted to say or do almost anything. For brands, that loss of control can turn into a public relations problem very quickly.
Copyright Risks Are Still a Major Unknown
Beyond consumer perception, AI-generated ads bring legal concerns that many brands are still sorting through. Current copyright law does not clearly protect content created entirely by nonhuman systems. Without meaningful human involvement, AI-generated images, video or copy do not qualify for copyright protection.
This creates risk for businesses investing heavily in AI-generated creative, particularly for large-scale campaigns and branding. If ownership cannot be clearly established, brands may have limited protection if that content is reused, copied or challenged. Generative AI is trained on large volumes of existing content, often without clear visibility into where that material came from or who owns it. Without human review, AI-generated ads can unintentionally resemble copyrighted work, raising intellectual property concerns.
We explore this issue in our article on AI and copyright compliance, which outlines why businesses need to remain cautious when incorporating AI into content creation.
Using Generative AI Requires Careful Creative Judgment
AI tools are not inherently bad. They can support ideation, speed up production and assist with early concept development. The risk appears when AI becomes the final voice of a brand without thoughtful review.
Whether it’s a social media post, a print ad or a large-scale campaign, creative work still needs to reflect brand values, tone and audience expectations. Ads that feel artificial, awkward or emotionally flat can weaken trust and reduce impact, regardless of how efficient they were to produce.
Brands Taking a Stand for Real Human Connection
Major brands like J.Crew and Vogue have faced criticism after audiences noticed AI-generated models were used in campaigns. Even when the intent was creative exploration, the ads seemed misleading and led to much debate.
Some brands are choosing a different approach. Retail brand Aerie has publicly committed to avoiding AI-generated models in its advertising, reinforcing its long-standing focus on real people and authenticity. Polaroid has launched global campaigns that intentionally push back against digital devices and AI use, highlighting its analog film cameras and the value of real-world human experiences.
As we continue into 2026, these brand stories and audience reactions are showing that people want advertising that feels honest, thoughtful and human. They want to see real creativity, genuine emotion and messages that reflect real life.
Helping Brands Make Smart Creative Choices
AI is not going away, yet neither is the need for human judgment. At Callis, we closely monitor how AI updates affect brands, businesses and marketing strategies. We help clients evaluate when AI use makes sense and how to protect brand trust along the way.
From design and copywriting to creative direction and AI strategy, our team helps businesses make informed decisions that support long-term brand growth. If you’re questioning how generative AI fits into your advertising plans, we’re here to help.
Sources:
https://adage.com/creativity/aa-all-trades-co-mcdonalds-ai-ad
https://www.businessinsider.com/ai-advertising-controversies-flops-coca-cola-mcdonalds-meta-2025-12
https://www.thecut.com/article/did-jcrew-use-ai-on-instagram-campaign.html
