Major Brands Face Backlash Over AI Advertising Controversies

UPDATE: Major brands are reeling from a wave of backlash over controversial AI-generated advertising campaigns in 2025. From Coca-Cola’s inconsistent holiday ads to McDonald’s ill-fated “most terrible time of the year” campaign, these incidents have sparked outrage among consumers and industry experts alike.

Just announced: A survey of over 6,000 US consumers reveals that 39% view AI-generated advertising negatively, while only 18% express a positive sentiment. As brands increasingly integrate AI into their marketing strategies, the backlash shows no signs of slowing.

AI has become a cornerstone for many chief marketing officers this year, but the risks associated with automation are becoming painfully clear. Notably, McDonald’s Netherlands launched an AI-generated holiday ad that quickly garnered criticism for its “cynical” tone and “creepy” characters. Viewers were quick to label it as a flop, leading the fast-food giant to remove the ad entirely from YouTube.

In a statement, McDonald’s Netherlands acknowledged the mixed reactions, stating, “We respect that many of our customers feel the season is ‘the most wonderful time of the year.'” The ad, originally intended to offer a humorous take on holiday chaos, was abruptly pulled after widespread backlash.

Meanwhile, Coca-Cola also faced scrutiny for its AI-generated holiday campaigns. Despite the brand’s attempts to innovate, one ad featuring shape-shifting holiday trucks was criticized for its lack of consistency. PJ Pereira, cofounder of Silverside AI, defended the use of AI, claiming the ads performed well in consumer testing, scoring a high 5.9 on System1’s scale for long-term brand growth.

However, the creative community remains skeptical. Industry expert Matt Barash warned about the dangers of allowing AI to automate the creative process, stating, “When brands ask AI to invent stories from scratch, they don’t get innovation — they get an approximation of human emotion.”

Another shocking incident involved Meta, which unintentionally swapped out a top-performing ad for a bizarrely cheerful AI-generated granny. This unexpected change left marketing executives bewildered and sparked debate over the reliability of AI in advertising. Meta confirmed that advertisers can review generated images but acknowledged issues with default settings that led to unwanted AI creatives.

Fashion retailer H&M also stirred controversy with its plan to create “digital twins” of models, allowing the use of AI-generated images in campaigns. The initiative raised serious questions about consent and compensation, with critics arguing that it threatens the livelihoods of real workers in the industry. H&M admitted that generative AI raises important ethical concerns and emphasized its commitment to exploring these technologies responsibly.

In a striking move, Vogue featured AI-generated models in a Guess ad, igniting outrage over the unrealistic beauty standards perpetuated by AI imagery. The backlash was intense, with some readers threatening to cancel their subscriptions. The cofounders of Seraphinne Vallora, the agency behind the models, defended their approach, insisting they aim to supplement — not replace — human models.

As brands grapple with the consequences of their AI strategies, a notable trend is emerging: partnerships with AI social accounts fell by 30% in the first eight months of 2025 compared to the previous year, according to data from Collabstr. This decline raises serious questions about the future of AI in advertising.

Next steps: Industry leaders are watching closely to see how brands will adapt in response to consumer sentiment. With a growing backlash against AI-generated content, companies may need to reevaluate their strategies to maintain consumer trust and engagement.

Stay tuned for further updates as this story develops.