Let’s start with a flashback. Hema, Rekha, Jaya, and Sushma liked Nirma; ‘Jaago re’, urged Tata Tea; Fevikol told the 60-year journey of a sofa; and the erstwhile Hero Honda made us feel it was indeed ‘Desh ki Dhadkan’. All these and many more are shining examples of creative brilliance in advertising. Human intelligence, cultural resonance, and emotional connection made these ads so memorable and evergreen. But something is changing.
Disney is preparing to launch a beta version of an artificial intelligence (AI)-generated television ad tool in July 2026. The tool can generate scripts, videos and music through a single workflow and is targeting small and medium-sized advertisers that do not have enough video assets, according to a Business Insider report.
At the very least, the move indicates a larger shift in advertising. AI is entering high-value video advertising, including connected TV and streaming, where production costs have traditionally kept smaller brands away.
For Indian advertisers, the shift could be significant. Small businesses, such as SMEs, that once needed separate budgets for scripting, shoots, editing, voiceovers, music, compliance and platform-specific cuts may now be able to create basic video assets faster and at lower cost. But the same promise also carries a warning: If video ads become cheap, quick and self-serve, Indian consumers may soon see far more ads—not necessarily better ones.
What is driving adoption
Industry executives say the adoption of AI-generated ads is not being driven by cost alone. Aditi Olemann, Vice President, Marketing & Communications at Cashfree Payments, says that novelty, operational efficiency, and speed are driving this adoption.
“First is the novelty factor. AI video creation capabilities have advanced dramatically in the last year; hence, these ads stand out as distinct and memorable, capturing audience attention effectively. Second is operational efficiency. By eliminating the need for traditional shoots and logistical complexities, AI allows for seamless iteration and refinement without costly reshoots. Finally, there is the advantage of speed. AI-driven production enables rapid deployment”, Olemann said.
Brands are no longer making one campaign for one medium. They need multiple versions across Instagram, YouTube, connected TV, over-the-top platforms, short-video apps, quick-commerce platforms and performance channels. Each format demands a different cut, duration, language, design and call to action. That is where speed becomes the selling point.
A shortcut
Traditional video production is expensive as it involves multiple layers of creative and technical work. For SMEs, the production bill can often exceed the budget available for media distribution. AI tools promise to compress that process by generating scripts, visual drafts, edits, voiceovers, music and localisation options at greater speed.
Aditya Jangid, Managing Director, AdCounty Media, said, “Finally, AI is democratising the process of creating creative material for ads. Small businesses lacking access to expensive creative facilities can create professional-level advertisements using AI technologies.”
Olemann said AI-generated ads can deliver a high return on investment for SMEs by allowing faster production and freeing up budgets for distribution.
“It’s a mix of both. For an SME starting out, AI-generated ads can deliver high RoI by enabling faster production and freeing up budget for distribution. However, scaling is challenging; with rising token costs, producing hundreds of ads quickly leads to diminishing returns where production costs outweigh the benefits. If your primary goal is awareness, it is better to limit AI-generated content and prioritise investment in distribution,” she said.
Why India could adopt faster
India may be one of the natural markets for AI-generated advertising because of the combination of a fast-growing digital ad market, high video consumption, and language diversity.
An Indian advertiser may not need one national video. It may need the same offer in Hindi, Tamil, Telugu, Bengali and Marathi, with separate cuts for YouTube, Instagram, connected TV and commerce platforms. For regional brands, local language communication can make the difference between visibility and conversion.
“The most important benefit of using AI for video ads in Indian SMEs and regional brands will come from multilingual localisation. Videos can now be localised, dubbed and customised in several languages using less cost and with more efficiency. This is especially true of India, where consumer engagement becomes much better when there is communication in local languages,” Jangid said.
Early adopters are likely to come from sectors where digital performance marketing is already common. Jangid said e-commerce, D2C brands, fintech, edtech, travel, food delivery, gaming and real estate would likely be early users as they run high volumes of campaigns and require continuous testing of messages, visuals, and formats.
The slop problem
Where AI still struggles is the part advertising has always depended on: Emotional recall. With AI, cheaper creativity can become cheap-looking creativity very quickly. This is AI slop, where synthetic content is mass-produced mainly for scale, often with limited originality, weak emotional pull, and generic visuals. AI can make more ads, in more languages, for more platforms. What it cannot guarantee is memory.
Rahul Kashyap, Executive Director, PRP Group Pvt Ltd said the industry should be careful not to overestimate what AI can replace.
“What concerns me is the rush to overestimate what AI can replace. Advertising is a creative pursuit at its heart, and human insight is its core. If we shortchange that in the name of efficiency, we risk producing work that checks boxes and leaves no impression. Brand distinctiveness is not an output of automation. It is built through human choices, accumulated over time, and no algorithm changes that,” he said.
Jangid made a similar distinction between performance marketing and long-term brand building.
“But brand building needs emotional storytelling, cultural resonance and unique brand elements that build memorable structures in people’s minds. And in these areas, the power of human imagination remains crucial,” he added.
Olemann said many brands may use AI-generated ads because they lack the resources for long-term brand building. But she also warned that widespread AI adoption could dilute distinctiveness.
“While long-term brand building is ideal, many brands lack the resources to pursue it, making AI-generated ads a practical choice for short-term performance marketing. Currently, widespread AI adoption risks diluting brand distinctiveness, but rapidly evolving capabilities will soon allow for the creation of unique, brand-specific creative,” she said.
Trust, disclosure and brand safety
The concerns around AI-generated ads go beyond quality. They include misleading product claims, fake-looking product demos, synthetic testimonials, voice and likeness misuse, copyright issues around music and visuals, weak brand consistency, lack of disclosure and consumer mistrust.
These risks are particularly sensitive in categories such as healthcare, finance, education, luxury and products that rely heavily on credibility or expert claims.
Jangid said authenticity, transparency, copyright, disinformation and consumer trust will become more significant as AI-driven advertising becomes more common.
“One of the major threats will be the generation of misleading or manipulated content that will be difficult for consumers to identify as fake,” he said.
“Another issue will be the intellectual property rights concerns that will arise as AI models learn from copyrighted creative works. Brands will have to make sure that all the assets generated by artificial intelligence adhere to both legal and ethical standards to prevent any potential problems,” he added.
Olemann said disclosure should be a basic safeguard. “A critical safeguard is requiring AI platforms to automatically disclose when content is AI-generated. Given the potential for unethical use, such transparency is essential,” she said.
Jangid also called transparency crucial. “When it comes to synthetic media, AI-generated spokespersons or digitally manipulated media, consumers must know that they exist. Disclosure rules in the industry will be able to ensure transparency,” he said.
He said India will need to consider AI-generated content disclosures, data privacy and security regulations, accountability measures, intellectual property regulations and deceptive advertising restrictions. But he added that regulation should balance innovation and consumer protection.
“The goal should not be to limit the technology but to promote responsible AI adoption. In the end, trust will be the most valuable currency in the age of AI-driven advertising,” he said.
Agencies under pressure
It is unlikely that AI will kill legacy advertising agencies that have a solid creative foundation, but it may change where they make money. Lower-end production work such as first drafts, edits, cutdowns, resizing, localisation, dubbing and performance variants may increasingly be automated. That could put pressure on production revenue, especially for agencies that rely on volume-based creative work.
But agencies may still matter for strategy, brand voice, approvals, cultural relevance and risk control. As production becomes cheaper, clients may be more willing to pay for sharper thinking, supervision and governance.
Kashyap warned that governance will become a larger issue. “The bigger unresolved question is governance. AI currently operates without meaningful regulatory guardrails, and I believe that is going to change sooner than the industry expects. Regulatory bodies are paying close attention, and compliance frameworks are coming. When they arrive, they will define not just what is permissible but how accountability is demonstrated, enforced, and reported across every player in the ecosystem. The organisations that are already thinking about governance seriously, not just chasing capability, will be in a far stronger position when that moment arrives,” he said.
What to watch next
AI-generated ads will grow because the economics are attractive. They promise lower cost, faster turnaround, more personalisation, and measurable outcomes. For Indian SMEs, D2C brands and regional advertisers, they could make video advertising more accessible than before.
But the winners may not be the brands that produce the most ads. They may be the ones who use AI to produce relevant ads without sacrificing trust, originality, and distinctiveness.
Disney’s tool shows where advertising is headed: Video ads are becoming cheaper, faster and more self-serve. The challenge for brands will be to ensure that efficiency does not become the enemy of memory.
