Artificial intelligence became a double-edged sword for major brands in 2025, as chief marketing officers’ enthusiasm for AI-generated advertising led to a series of high-profile controversies and consumer backlash. A November survey by brand-tracking platform Tracksuit revealed that 39% of over 6,000 US consumers held negative views toward AI-generated advertising, with only 18% expressing positive sentiment and 36% remaining neutral.
McDonald’s Netherlands launched an AI-generated holiday ad titled “the most terrible time of the year” that was quickly pulled after viewers criticized its cynical tone and “creepy” characters. The 45-second spot featured cooking mishaps and holiday chaos, suggesting McDonald’s as a refuge. After disabling comments and facing backlash, the company removed the ad entirely, acknowledging that many customers view the holidays as “the most wonderful time of the year.”
Coca-Cola released three AI-generated holiday ads in 2025, despite previous criticism of its 2024 AI rendition as “dystopian” and “soulless.” The new “Holidays are Coming” spot drew attention for inconsistencies, including trucks that appeared to change wheel quantities mid-ad. However, the ad received a perfect 5.9-star rating from System1 for potential long-term brand growth, and DAIVID reported higher-than-average attention and brand recall scores.
Meta’s advertising platform caused controversy when it automatically replaced True Classic’s top-performing ad featuring a millennial man with an AI-generated grandmother. Advertisers reported that Meta’s Advantage+ AI-powered ad products automatically generated creatives and switched settings to “on” even when explicitly turned off, resulting in unintended AI-generated ad spending.
H&M announced plans to create “digital twins” of 30 models for social media and ad campaigns, with models retaining ownership rights. Fashion influencer Morgan Riddle called the move “shameful,” while Model Alliance founder Sara Ziff raised concerns about consent, compensation, and potential job displacement for makeup artists, hair stylists, and other creative professionals.
Vogue faced subscriber cancellation threats after running a Guess ad featuring AI-generated models “Vivienne” and “Anastasia” in its August 2025 issue. Critics argued the images promoted unrealistic beauty standards and threatened creative industry jobs. Data from influencer-marketing platform Collabstr showed brand partnerships with AI social accounts dropped approximately 30% in the first eight months of 2025 compared to 2024, suggesting a potential cooling trend.
Key Quotes
When brands ask AI to invent stories from scratch, they don’t get innovation — they get an approximation of human emotion, and the result can make headlines for all of the wrong reasons
Matt Barash, chief commercial officer of adtech platform Nova, explained why brands should be cautious about automating creative processes. His observation captures the fundamental problem with AI-generated advertising: it lacks genuine human emotion and can produce content that resonates negatively with audiences.
Coca-Cola became a pioneer in this space because, once they recognized AI as the future, they stopped debating whether it’s perfect or not — and instead focused on how to use it in the best, most creative way possible
PJ Pereira, cofounder of Silverside AI (the production company behind Coca-Cola’s AI holiday ads), defended the brand’s use of AI despite visual inconsistencies and public criticism. This statement reflects the divide between AI advocates who prioritize innovation and consumers who demand quality and authenticity.
In an industry that has historically been a backwater for workers’ rights, H&M’s new initiative raises critical questions about consent and compensation, and has the potential to replace a host of fashion workers — including make-up artists, hair stylists, and other creative artists in our community
Sara Ziff, founder of Model Alliance, expressed concerns about H&M’s digital twin initiative. Her statement highlights the broader labor implications of AI adoption in creative industries and the potential for widespread job displacement beyond just models.
We recognize that generative AI raises important questions and concerns, and we want to be transparent in acknowledging that we do not yet have all the answers, but are continuing to learn and evolve
An H&M spokesperson acknowledged the uncertainty surrounding AI implementation in fashion. This admission reflects the experimental nature of AI adoption in marketing and suggests even major brands are navigating uncharted territory without clear guidelines or best practices.
Our Take
The 2025 AI advertising controversies reveal a fundamental disconnect between corporate enthusiasm for AI efficiency and consumer demand for authentic, human-created content. These failures aren’t merely technical glitches—they represent a deeper crisis of trust in AI-generated creativity. The 39% negative sentiment toward AI advertising suggests consumers can detect and reject artificial content, even when it tests well in controlled environments like System1’s ratings. The 30% drop in AI influencer partnerships indicates the market is already correcting course. What’s particularly telling is that brands like Coca-Cola and McDonald’s, with decades of marketing expertise, still stumbled badly with AI implementation. This suggests the technology isn’t ready to replace human creativity in emotionally resonant storytelling. The future likely lies in hybrid approaches where AI handles technical tasks while humans maintain creative control—a lesson these brands learned the hard way.
Why This Matters
This wave of AI advertising controversies represents a critical inflection point for the marketing industry’s relationship with artificial intelligence. While AI promises efficiency and cost savings, these high-profile failures demonstrate that consumers are increasingly skeptical of AI-generated content that lacks authentic human emotion and creativity.
The backlash has significant implications for AI adoption in creative industries. Matt Barash of Nova adtech platform warned that AI produces “an approximation of human emotion” rather than genuine innovation when tasked with creating stories from scratch. This suggests brands must find the right balance between AI efficiency and human creativity.
The controversies also highlight growing concerns about AI’s impact on creative jobs, from models and photographers to makeup artists and stylists. The 30% drop in AI influencer partnerships indicates the market may be self-correcting as brands recognize consumer resistance.
For the broader AI industry, these failures serve as a cautionary tale about moving too quickly without considering consumer sentiment and ethical implications. As AI capabilities advance, companies must prioritize transparency, authenticity, and human oversight to avoid alienating their audiences and damaging brand reputation.
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Source: https://www.businessinsider.com/ai-advertising-controversies-flops-coca-cola-mcdonalds-meta-2025-12