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Oreo-maker Mondelez will use AI for TV ads next year, marking a major shift in how one of the world’s biggest snack brands approaches advertising. The company plans to rely on generative AI to cut marketing costs, enhance creativity, and reach audiences faster — despite growing criticism of AI-generated commercials.
Jon Halvorson, Mondelez’s global senior vice president of consumer experience, revealed that the company has invested over $40 million in an AI video creation tool designed to cut ad production costs in half. The goal is to air its first AI-generated TV commercials by the 2026 holiday season, with a possible rollout during the 2027 Super Bowl.
According to Halvorson, the AI tool has already been used to produce digital and social media content for brands like Chips Ahoy and Milka, while new Oreo product page designs made with the same technology will debut online in November.
The decision by Mondelez to embrace AI isn’t just about cutting costs — it’s about transforming how ads are made. Generative AI enables brands to produce large volumes of tailored content quickly, allowing marketers to test creative variations and localize campaigns for different regions with ease.
Still, the company is aware of the potential backlash. AI-generated ads have faced criticism for being overly synthetic or emotionally disconnected, as seen with Coca-Cola’s 2024 AI Christmas campaign, which sparked public debate about authenticity in advertising.
Mondelez joins a growing list of global brands experimenting with AI-driven storytelling. From PepsiCo to Nestlé, companies are exploring how machine learning can make their marketing more data-informed and scalable.
However, consumer trust remains a critical factor. Research shows that audiences value creativity and human emotion in advertising — qualities that AI often struggles to replicate convincingly. Mondelez’s challenge will be balancing AI efficiency with authentic brand storytelling.
While Mondelez’s move could revolutionize ad production, it also comes with risks. Regulatory scrutiny over AI content and ethical concerns about transparency are increasing across markets, especially in the EU and North America.
To mitigate these risks, Mondelez says its marketing teams will retain human oversight on all AI-generated ads. Each concept will undergo creative review to ensure it aligns with brand standards and consumer expectations.
Oreo, one of Mondelez’s most iconic brands, has long pushed creative boundaries in digital marketing — from interactive campaigns to playful social media stunts. The addition of AI-generated content could help the company maintain a strong online presence while optimizing costs across global markets.
If successful, Mondelez’s AI experiment could inspire a wave of AI-powered ad campaigns across the food and beverage industry. For now, all eyes will be on how the company executes its first AI-created TV ads next year.
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