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Holiday AI Fails: Why McDonald’s and Coca-Cola’s Ads Backfired

Major brands like McDonald’s and Coca-Cola recently launched holiday-themed commercials heavily reliant on artificial intelligence (AI), sparking immediate backlash from consumers. These high-revenue companies – McDonald’s at $25.9 billion and Coca-Cola at $47.1 billion in 2024 – have drawn criticism for prioritizing AI-generated content over human creative work, a decision many view as cheapening the quality of their advertising.

The core issue isn’t just the use of AI, but the visible quality of its application. Both commercials, despite being drastically different in execution, failed to meet audience expectations. McDonald’s spot, intended for the Netherlands, was quickly removed due to intense negativity. The commercial featured jarring cuts and low-quality visuals, making its AI origin painfully obvious. Coca-Cola’s ad, while more polished, still exhibited telltale AI artifacts in its digitally created animals.

The Rise of AI in Marketing

This trend comes amid a rapid surge in generative AI tools, particularly in marketing. According to Canva’s 2025 Marketing and AI report, 94% of marketers now have a dedicated AI budget, with 75% expecting that budget to grow. This explains why AI-generated content is saturating social media feeds: it’s a cost-effective, seemingly efficient approach for businesses.

However, the public’s reaction demonstrates a clear limit to how much “AI slop”, as many viewers are calling it, they’re willing to accept. The backlash isn’t about opposing AI outright; it’s about demanding quality and transparency.

Spotting AI: The Tell-Tale Signs

The McDonald’s ad was riddled with AI hallmarks: abrupt cuts, plastic-looking people, and illegible text. Coca-Cola’s commercial used AI to create animals, but even the behind-the-scenes footage revealed inconsistencies – poorly rendered fur, exaggerated expressions, and obvious AI tools like Google’s Veo video generator.

The key problem is that while AI tools are improving, they still struggle with nuanced details. Real animators would catch and correct issues like inconsistent textures or unnatural movements, but AI often misses these flaws.

Why Transparency Matters

Coca-Cola at least disclosed its AI use upfront, a rare but crucial step toward accountability. Many brands avoid this transparency, fearing negative reactions, but doing so only exacerbates distrust. If brands insist on using AI, honesty is the bare minimum.

The Bigger Picture: Jobs and Normalization

This situation highlights a broader concern: the potential displacement of human creatives by AI. While some companies may justify AI as cost-saving, the reality is that real jobs are being lost. Vogue’s use of an AI model and J.Crew’s “AI photography” have already sparked backlash, proving that consumers are aware of this trade-off.

The normalization of AI in advertising is happening rapidly. Whether we like it or not, AI is becoming increasingly inescapable. The real question isn’t if AI will be used, but how it will be implemented responsibly and ethically.

The recent failures of McDonald’s and Coca-Cola serve as a stark reminder that consumers won’t tolerate shoddy AI-generated content. Demanding transparency and quality is the only way to ensure that AI in advertising doesn’t come at the expense of human creativity and consumer satisfaction.

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