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From Weird to Wow: The Evolution of AI-generated Video Ads

Wojtek Jeżowski

October 2, 2025

Table of Content

Remember the "Will Smith Eating Spaghetti" Video?

That cursed deepfake that became the face of AI video capabilities? It got so popular that even Will Smith himself made a hilarious parody and posted it on Instagram.

Yes, this one:

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Here’s how most AI-generated videos (and AI "actors") looked just two years ago. But not anymore.

With Google’s VEO 3 model launch in May 2025, the Will Smith spaghetti video was one of the first to get a major revamp. Despite some quirky issues (why is the spaghetti crunchy? why is he eating so loud?), the improved video quality is mindblowing. It showed how fast ai tools, video tools, and new ai features like advanced camera movement control and realistic AI avatars are reshaping ad creation.

AI-Generated Video Ads in 2025 – What Changed?

AI generated videos have come a long way. They’re faster, more creative, and increasingly suitable for prime-time TV and major ad campaigns, although small flaws still exist.

Even big brands like Coca-Cola, whose 2024 AI Christmas ad added an extra finger to Santa, struggled with the uncanny valley:



But 2025 is different. AI video has matured, finding its voice, appearing in branded videos, and gaining legitimacy in mainstream marketing. Generative AI isn’t just a buzzword anymore – it’s shaping ad creatives, training videos, even whole YouTube channels.

So here's our completely subjective, yet passionately curated list of best AI generated video ads showing how far this tech has progressed this year.

Popeye’s (W)Rap Battle inspires fast-food fans

This entire ad campaign, including an original rap song dissing McDonald's, was created by Genre.ai in just three days with VEO 3. Despite relying on artificial intelligence for visuals, video script, and animation, it hit cultural notes you'd expect from Popeyes:

  • Authentic brand voice
  • Smart humor
  • Maxed-out brand personality

And while the brand faced issues with AI voiceovers and lip sync, it was bypassed by covering mouths with microphones.

Sadly, there was no official response, but it still made an impact. In fact, it inspired some fans to making their own songs dissing Popeyes in the name of brands like McDonald's or Wendy's and putting them on their YouTube channels.

That's true AI content with soul.

Google I/O 2025 – AI-generated event opening video ad

While this might not be your typical AI video ad, AI generated content made it's way to Google's annual, flagship developer conference. Starting from the opening video created with Google's generative AI video tool VEO 3, Artificial Intelligence was central at this year's event.

Here are some details about the AI tools used and their work scope:

  • 19 slides of the keynote generated by AI
  • 48% of keynote visuals made with Imagen
  • 80% of keynote videos created using VEO or Imagen

So in this case it was both a show and tell demonstrating AI’s creative capabilities.

Kalshi – “World Gone Mad” - first AI Spot aired at the NBA Finals

This 30-second spot was entirely AI-made in under 48 hours for $2000. But before you get all excited... that was just the cost in credits that the agency had to pay to generate it, not the final cost to the client. Sorry.

The aim? According to Genre.ai, it was to create the most unhinged (and the first) ad aired at the NBA Finals. And... It probably worked.

Sure, the quality is not great (although it matches the vibe of UGC style video ads), there are some VERY visible errors in the generated footage, but we can't argue it set a whole new benchmark for real-time, cost-effective advertising.

Fiverr – Prompt and Punishment - community outsourced ad with a virtual character

Meet Garry. Your AI punching bag.

Fiverr ditched traditional agencies and went full speed into AI-native marketing, crowdsourcing the campaign from freelancers on their own platform.

Crowdsourced on Fiverr, this campaign mixed ad templates, ai avatars, and generative AI-driven storytelling. The result? An AI actor (surprisingly human-like) that literally gets slapped around for bad prompt-writing. And proof that AI can create videos that are quirky, but relatable and make us feel, too.

IM8 Health – "The Choice" - ad featuring an AI avatar of a sports star

A cinematic style product video featuring a realistic ai avatar of Aryna Sabalenka. Powered by the best AI tools (Midjourney, Ideogram, ElevenLabs, VEO 3), it achieved over 120M views – with multi language support, background music, and brand colors finely tuned to perfection.

It's another level in AI powered storytelling.

From Times Square screens to 120M of online views (85M of those in 24 hours), this video creation showed that AI’s able to match (or even mimic) celebrity-level ads when it comes to effectiveness.

Why These AI Ads Work

  • Speed: In all cases, the production time was counted in days, not months, or even weeks.
  • Creativity: They aren’t trying to create videos that look real, but they’re trying to feel right.
  • Cost: Not necessarily cheap, but definitely less expensive than traditional production.
  • Emotion: Perhaps the biggest accomplishment - they actually made us feel something.
  • Purpose: In all cases AI was used as a tool to tell better stories, faster.

So we're not saying Artificial Intelligence is taking over creative, just like AI avatars will not replace real actors. But AI is definitely joining the crew when it comes to creating ads, and it's not half bad with a camera. 😉

A cold splash of reality

Before you start replacing your entire video team with ChatGPT and Midjourney prompts, we need to throw in a cold bucket of water.

Most of these AI-created ads weren’t made by a lone creative locked in a basement - they were made by full creative teams. Yep, same as traditional productions.

  • There’s still a director making sure the story lands.
  • Sometimes a director of photography steps in to guide how light should fall across an AI-generated cheekbone.
  • You’ve got copywriters scripting the lines, animators adding the magic, editors pulling it all together, and a creative director ensuring the vibe matches the brand.
  • Oh, and let's not forget a producer to keep it all from turning into chaos.
  • Plus, of course, an AI content specialist who knows how to get Veo or Midjourney to behave.

Basically, you need the same brains as before, they're just using new features.

So, if your intern’s AI video ad looks like a pixelated fever dream, it’s not because AI sucks. It’s because you believed the hype that “anyone” can create videos in an afternoon.


Final take

This year proved generative AI isn’t killing creativity - in fact, it’s demanding even more of it.
The best campaigns in 2025 didn’t just plug prompts into a machine. They combined old-school storytelling craft with bleeding-edge tech, using AI features as a tool, not a shortcut.

So yes, AI is a game-changer. But like all tools, it’s only as good as the people wielding it.
The winners? Brands that stop asking, “How do we make this cheaper?” and start asking, “How do we make this unforgettable?”

Want Your Brand To Be Next On The List?

At Black Rabbit, we don’t just play with AI tools. We direct ads. So if you’re after videos that don’t just look cool but also convert, let’s talk.

Contact us and let's create real magic together!

FAQ – AI Video Marketing in 2025

1. Are AI video ads good enough for prime-time TV and major campaigns?

Yes. 2025 proved it. Kalshi’s NBA Finals spot, made entirely with AI for just $2,000, aired during a top US TV event. These ads are polished (well, maybe not in that case), impactful, and emotionally resonant. AI is part of the team, not just an experiment.

2. What’s the advantage of using AI in branded video content?

Speed and flexibility. AI lets brands go from script to screen in days, iterate faster, explore bold ideas, and reduce costs. When combined with strong storytelling, AI tools enhance, rather than replace, human creativity.

3. Isn’t all AI-generated video still uncanny and weird-looking?

Not anymore. Early examples like “Will Smith eating pasta” were meme-worthy, but 2025 campaigns show maturity. The trick is intentional use: strong direction, solid scripts, and smart editing to bypass the uncanny valley.

4. Why do I need an agency? Can’t I just do everything myself with AI tools?

AI makes content creation faster, but it doesn’t replace taste. Or storytelling. Or strategy. Most great AI ads still involve teams with directors, writers, animators, and AI specialists, just like traditional shoots. Agencies know how to combine human creativity with AI capabilities to produce something that not only looks good but works. DIY can be great for testing - but for high-stakes campaigns, you still want pros at the wheel.

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