Increased Adoption of Generative AI in Video Content Production
In the ever-evolving world of digital advertising, generative AI (GenAI) is making a significant impact. According to the Interactive Advertising Bureau's (IAB) July 2025 Digital Video Ad Spend & Strategy report, the use of GenAI in digital video ads is projected to increase from about 30% in 2024 to 39% in 2026[1][3].
This growth is driven by several factors, including speed and scalability, cost efficiency, and data-driven personalization. Nearly nine in ten digital-video buyers are already using or planning to use GenAI tools for creative production, signalling that AI has moved from pilot projects to mainstream workflows[3].
Smaller and mid-sized brands are leading the charge, with expectations that by 2026, 45% of smaller brands’ digital video and 42% of midsize brands’ videos will be developed using GenAI, compared to 36% for larger brands[1].
The primary use case for GenAI in video ads includes customization for different audience segments, enabling rapid personalization without reshooting footage[3]. This capability is particularly valuable for small brands, who often need to maximize limited resources.
However, the integration of GenAI into the advertising industry is not without its challenges. 37% of respondents cite the "need for sell-side partners" to offer human review and sign-off processes, ensuring that AI outputs align with brand voice and quality standards[2]. Similarly, 32% insist that sell-side partners ensure clear visibility into which AI models and prompt variants drive the best engagement metrics, enabling data-driven optimization of AI-produced creative[2].
To address these concerns, there is a growing emphasis on establishing clear guidelines for AI usage, known as the AI-First Creative Playbook. This includes defining roles for AI versus human collaborators, setting prompt standards, and documenting revision workflows[2].
Moreover, there is a focus on balancing speed and quality. Using GenAI to accelerate low-risk tasks while reserving high-stakes content for more thorough human refinement is a strategy that many advertisers are adopting[2].
In addition, compliance and brand safety are crucial considerations. 32% of buyers expect platforms to provide compliance guidance and brand-safety checks for AI-generated assets, safeguarding against regulatory missteps and reputational risk[1].
As the use of GenAI continues to grow, it is clear that it will play an increasingly important role in digital video advertising production and strategy through 2026 and beyond[1][3].
References: [1] Interactive Advertising Bureau (IAB). (2025). Digital Video Ad Spend & Strategy Report. Retrieved from http://iab.com/reports/digital-video-ad-spend-strategy-report [2] Gartner. (2025). The Future of Advertising: The Rise of Generative AI. Retrieved from https://www.gartner.com/en/marketing/trends/the-future-of-advertising-the-rise-of-generative-ai [3] AdAge. (2025). The AI Revolution in Advertising: A Deep Dive into Generative AI. Retrieved from https://adage.com/article/digital/ai-revolution-advertising-deep-dive-generative-ai/2361591
- In the realm of business, artificial intelligence (AI), particularly generative AI (GenAI), is not only revolutionizing digital advertising but also investing in technology, offering benefits such as data-driven personalization and cost efficiency.
- As AI tools like GenAI become more mainstream in the creative production of digital video ads, there is a growing emphasis on establishing clear guidelines for their usage, such as defining roles for AI and human collaborators, and ensuring brand safety and compliance, which are crucial for both small and larger businesses.
