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Advertising with AI: what works and what doesn't in 2026

Making ads with AI in 2026: what AI video does well today, where it goes wrong, what McDonald's and Coca-Cola learned and when you're better off filming.

Yes, in 2026 you can make ads with AI, especially for product shots, atmosphere, voices and variants. AI is weak at small text in motion, hands, long shots, Dutch dialogue and anything that has to be real, such as testimonials. And it doesn't do the thinking: the best AI ads come from a mix of models and people.

That was also the core of the talk I gave on 12 June 2026 at the Google × ClickTrust event "Human in the loop", where I built a video ad live from a few statics [1]. It's also how we approach AI video production at Izoard.

What AI does well in advertising

  • From product photo to shot. Veo 3.1 turns your photo into a clip of 4, 6 or 8 seconds, in 16:9 or 9:16, with sound. If you specify both a first and a last frame, the shot ends on your real packshot [2].
  • Several shots as one story. Kling 3.0 makes up to 15 seconds and sets the duration, framing and camera movement per shot [3].
  • Atmosphere and setting without a location. Your real product in a kitchen or on a mountain. The European Commission cites a real product against an AI background as an example of what is generally not a deepfake [4].
  • Voices in two languages. A separate AI voice gives you control over Dutch and French; at ElevenLabs, only the paid plans include a commercial licence [5].
  • Variants without a shoot day. Andromeda, the system Meta uses to select ads, was built partly for the growing number of creatives from generative AI [6]. Why the number of variants matters more today than the perfect audience is explained by Jonas in Meta campaign structure in 2026.

How to approach that step by step is covered in from product photo to video ad with AI.

Where AI (still) goes wrong, and when you're better off filming

Where AI video falls short in advertising today
ProblemWhyWhat you do instead
Small text and logos in motionThe model redraws your product frame by frame; in our experience, lettering still distorts regularly, even though Kling promises progress [3]Add logo and text in the edit, end on your real packshot
Long continuous shotsVeo makes 4 to 8 seconds per generation, Kling 3.0 up to 15 [2][3]An ad is an edit of short shots
Dutch-language dialogueKling 3.0 doesn't list Dutch, and Veo is only fully supported in English [2][3]A separate voice-over, no lip sync in Dutch
Generating people in the EUVeo only generates adults there [2]Take it into account in your concept
How your product works, testimonialsA generated shot can show something that isn't true, and an AI customer doesn't existFilm it, or use real customers

Hands holding a product and moving liquid also remain weak points. We deliberately don't give percentages like "30% of shots fail": we found no independent measurement. That's why our studio mixes AI with real footage where that is stronger [1].

Which rules apply to AI advertising?

  • Label deepfakes. Since 2 August 2026, you must clearly disclose realistic AI content that could pass for real (AI Act, Article 50). Realistic AI people who carry your message and cloned voices usually fall under this; extras and your real product in an AI setting generally don't [4][7].
  • The Belgian framework. For online video, the Raad voor Reclame, the Belgian advertising council, recommends a label that stays on screen for at least five seconds [7]. Since September 2026, the Belgian Advertising Code has an article on AI: the mere use of AI does not in itself require a disclosure [8].
  • Misleading stays misleading. If AI shows your product as better than it is, no label helps [7].
  • Real people require consent. Anyone who imitates the image or voice of a recognisable person with AI needs prior consent [8].

Which ads need a label exactly, and how to place it, is covered in Does your video ad need an AI label?

Do it yourself, use a template tool or hire a studio?

Three ways to make ads with AI
ApproachWhen it fitsWhat to watch
Template toolA quick product clip for an organic post or a first testLittle control over hook, edit and product fidelity; check which model is behind it
Yourself, with Veo, Kling or RunwayYou have someone with time and an eye for editingTakes, checks, versions in two languages and labels: count those hours
A studioYou want a concept with variants that is ready to testYou pay for script, art direction and checks, not for the generating

Measure every ad against the same yardstick. Google sums up its research into effective video ads as ABCD: grab attention immediately, show the brand or product early, make it human and give a clear next step [9]. Which model works for which shot is in Veo, Kling or Runway: which AI video tool for ads?

What McDonald's and Coca-Cola learned

McDonald's Netherlands launched a Christmas film made entirely with AI in early December 2025, for TV and online video [10]. Within about a week it was offline, after criticism of both the tone and the use of AI; McDonald's called the feedback "an important lesson" [11][12]. According to the CEO of the production company, ten people worked on it full-time for five weeks [13].

In 2024, Coca-Cola had its "Holidays Are Coming" remade with AI [14]. That version was criticised for unnatural faces and movements, and in 2025 the brand chose animals instead of realistic people [15][16]. According to The Verge, citing the Wall Street Journal, about a hundred people worked on it and more than 70,000 clips were generated [16].

What you can learn from this:

  • The audience judges the result, and sometimes also the choice of AI itself. Some viewers would rather have seen a real film [11].
  • AI is not a button. The people and the hours don't disappear [13][16]. It is faster, though: Coca-Cola says production used to start a year in advance and now takes about a month [16]. At the 2026 Super Bowl, the marketing director of a brand with an AI spot said it had saved little time or money [17].
  • Choose what AI does well. For most advertisers, AI's strength lies with the product, not with the people.

What does the audience think of AI advertising?

  • NIQ, December 2024. More than 2,000 participants watched AI ads; for about 150 of them, brain activity was measured. They recognised most AI ads and found them less engaging, even when the quality was high [18]. We read the press release, not the full study.
  • IAB, January 2026. Of 505 American consumers aged 16 to 43, 45% feel positive about AI ads. Of the 104 professionals surveyed, 82% think those consumers do. 73% say that knowing an ad was made with AI increases their likelihood of buying or changes nothing [19].

In these studies, AI ads score weaker on attention, and advertisers overestimate how much the audience likes to see AI. At the same time, according to most respondents, an honest disclosure doesn't harm buying behaviour.

Want to see what AI does with your own product, without committing a budget right away? Send your statics for a free test ad: one video ad on your own brand, at no cost or obligation.

Frequently asked questions

Can I make a commercial entirely with AI?

For many products, yes: from your product photos, with AI images, an AI voice and licensed music. It remains an edit of short shots, though, and the script, the choice of takes, the product check and the edit remain human work.

Why were the AI Christmas ads from McDonald's and Coca-Cola criticised?

McDonald's Netherlands took its AI Christmas film from December 2025 offline within about a week, after criticism of the tone and the use of AI. Coca-Cola was criticised in 2024 for unnatural faces and movements, and in 2025 chose animals instead of realistic people.

Is advertising with AI cheaper?

Not automatically. The compute is cheap, the people behind it are not: ten people worked on McDonald's AI film for five weeks. The advantage lies mainly in speed and variants, because a new opening is a new shot and not a new shoot day.

Does an ad made with AI need a label?

Only if it realistically shows something that could pass for real, such as AI people or a cloned voice. The Belgian Advertising Code puts it this way: the mere use of AI does not in itself require a disclosure.

How do consumers react to ads made with AI?

Mixed. In an IAB survey from January 2026, 45% of young American consumers felt positive about AI ads, while 82% of advertisers thought they did. In brain research by NIQ from 2024, participants found AI ads less engaging.

Sources

  1. AI video production (studio page: Google talk 'Human in the loop', tool stack, FAQ 'Do you fully replace a film crew with AI?', test ad) — Izoard, accessed 27 Sep 2026
  2. Generate videos with Veo 3.1 in Gemini API — Google AI for Developers, accessed 27 Sep 2026
  3. Kling AI Launches 3.0 Model, Ushering in an Era Where Everyone Can Be a Director — Kuaishou Technology via PR Newswire, 5 Feb 2026, accessed 27 Sep 2026
  4. Guidelines on the implementation of the transparency obligations for certain AI systems under Article 50 of the AI Act, C(2026) 5054 — European Commission, 20 Jul 2026, accessed 27 Sep 2026
  5. Pricing — ElevenLabs, accessed 27 Sep 2026
  6. Meta Andromeda: Supercharging Advantage+ automation with the next-gen personalized ads retrieval engine — Engineering at Meta, 2 Dec 2024, accessed 27 Sep 2026
  7. AI in advertising: transparency, disclosure and 12 clear principles — Raad voor Reclame, 2026-08, accessed 27 Sep 2026
  8. De Belgische Reclamecode (Belgian Advertising Code), version 22 (Art. 9: artificial intelligence; Art. 20: testimonials) — Raad voor Reclame, 2026-09, accessed 27 Sep 2026
  9. About the ABCDs of effective video ads — Google Ads Help, accessed 27 Sep 2026
  10. McDonald's keert kerst op z'n kop met AI-spot: 'De meest verschrikkelijke tijd' — Adformatie, 1 Dec 2025, accessed 27 Sep 2026
  11. McDonald's haalt AI-kerstcommercial offline na felle kritiek: 'Een belangrijke les' — Adformatie, 10 Dec 2025, accessed 27 Sep 2026
  12. Somehow, this AI-generated McDonald's ad about hating Christmas was a flop — The Verge, 9 Dec 2025, accessed 27 Sep 2026
  13. 'Ruined my Christmas spirit': McDonald's removes AI-generated ad after backlash — The Guardian, 11 Dec 2025, accessed 27 Sep 2026
  14. Groundbreaking Digital Experience and Films Fuse Holiday Heritage With Cutting-Edge Tech — The Coca-Cola Company, 2024, accessed 27 Sep 2026
  15. Coca-Cola Refreshes 'Givers of the Season', Embraces AI-Powered Storytelling in Global Holiday Campaign — The Coca-Cola Company, 3 Nov 2025, accessed 27 Sep 2026
  16. Coca-Cola's new AI holiday ad is a sloppy eyesore — The Verge, 3 Nov 2025, accessed 27 Sep 2026
  17. AI-generated ads dropped the ball at this year's Super Bowl — The Verge, 9 Feb 2026, accessed 27 Sep 2026
  18. NIQ research uncovers hidden consumer attitudes toward AI-generated ads — NIQ, 12 Dec 2024, accessed 27 Sep 2026
  19. The AI Ad Gap Widens — IAB, with Sonata Insights, 15 Jan 2026, accessed 27 Sep 2026
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