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AI ads spark backlash and reshape ad spend dynamics

Financial Times Companies •
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When McDonald’s rolled out a Dutch Christmas spot created with generative AI, the 45‑second clip sparked ridicule for its eerie visuals and a push to spend holidays at the fast‑food chain. Social backlash forced the ad off the air within days, and the company called the episode an “important learning” as it experiments with AI‑driven creative and sparked internal reviews of AI governance.

Marketers have embraced AI tools that churn out copy, images and video at a fraction of traditional costs, but the rush risks flooding feeds with low‑quality output. Brands such as Porsche and Polaroid now stress human‑made imagery to combat consumer fatigue with AI‑generated “slop.” Trust erosion could intensify if high‑profile missteps persist, prompting advertisers to safeguard authenticity today now.

Research firm MoffettNathanson notes that Google, Meta, Amazon and Microsoft now command 65 per cent of U.S. ad spend, leveraging AI‑enhanced targeting and creative. While AI accelerates workflow automation and performance‑marketing metrics, the sector may see a premium on human judgment as agencies navigate complexity. Brands that blend speed with genuine storytelling will capture the remaining revenue slice.