AI technology is beginning to influence advertising, with a striking example being Kalshi's fully AI-generated ad during the NBA Finals. Created in two to three days using Google's Veo 3 video model, this ad represents a trend towards faster and cheaper ad production. However, the overall adoption of AI in the industry remains limited, with only a handful of fully AI-generated ads previously aired. Questions arise regarding agencies' creative limitations and regulatory challenges that might hinder AI's potential in various sectors. Legal and ethical considerations also play a significant role in this evolving landscape.
The ad was made with Google's Veo 3 video model in around two to three days, according to director PJ Accetturo, and that extremely reduced creation time and low budget has reignited the debate around AI in advertising; especially given the subsequent polemic quote by Accetturo: '95% of ads will be AI-generated in the next two years.'
Before Kalshi, you could count the number of (fully) AI ads shown on TV on one hand: Coca-Cola, Coign, eToro, and Vodafone.
Is it a lack of imagination from agencies or a fear of a backlash from consumers? Was the advertising world just waiting for Veo 3 to be invented?
It's important to acknowledge the significant legal and ethical considerations surrounding AI.
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