Backlash to boom: Why brands are betting big on generative AI ads

Essential brief

Key facts

McDonald’s Netherlands released a fully AI-generated Christmas ad that faced criticism for tone and AI use.

Generative AI is increasingly adopted in advertising for efficiency, creativity, and cost reduction.

AI enables rapid content creation, allowing brands to experiment with diverse campaign ideas.

Skepticism about AI’s emotional authenticity persists, but its potential to transform advertising is significant.

Balancing innovation with audience expectations is key as AI-driven ads become more common.

Highlights

McDonald’s Netherlands released a fully AI-generated Christmas ad that faced criticism for tone and AI use.

Generative AI is increasingly adopted in advertising for efficiency, creativity, and cost reduction.

AI enables rapid content creation, allowing brands to experiment with diverse campaign ideas.

Skepticism about AI’s emotional authenticity persists, but its potential to transform advertising is significant.

In late 2025, McDonald’s Netherlands launched a fully AI-generated Christmas advertisement titled “It’s the Most Terrible Time of the Year,” which humorously portrayed the common stresses people face during the holiday season.

The ad, created entirely through generative AI, used rapid cuts and relatable scenarios to connect with viewers.

However, it sparked criticism for its tone and the use of AI in crafting the campaign, with some audiences questioning the authenticity and emotional resonance of AI-driven content.

Despite this backlash, the advertisement highlights a growing trend where brands are increasingly embracing generative AI to create advertising content.

Companies see AI as a tool to enhance creativity, speed up production, and reduce costs, enabling rapid iteration and customization of campaigns.

Generative AI can produce scripts, visuals, and even voiceovers, allowing marketers to experiment with diverse ideas without the traditional resource constraints.

This shift is part of a broader digital transformation in advertising, where data-driven and AI-powered methods are becoming central to campaign strategies.

While skepticism remains about AI’s ability to fully capture human nuance and emotion, many brands are betting on the technology’s potential to revolutionize how ads are conceived and delivered.

The McDonald’s Netherlands case serves as both a cautionary tale and a glimpse into the future of advertising, where balancing innovation with audience expectations will be crucial.

As generative AI tools continue to evolve, advertisers will likely refine their approaches to harness AI’s strengths while addressing concerns about authenticity and impact.