5 AI Advertising Controversies That Turned Heads

Marketers made artificial intelligence a centerpiece of their strategies in 2025, but the enthusiasm ran into risky territory. High-profile mishaps fueled a string of controversial marketing moments, from AI-generated ads that veered into the 'uncanny valley' to backlash over replacing human models and advertising creatives.

A survey of more than 6,000 US consumers conducted in November found that overall sentiment toward AI-generated advertising skewed negative (39%). Neutrality was also strong among respondents, at 36%, while only 18% felt positive about brands using AI-generated content in their ads. The AI backlash has even led to its own marketing trend: brands hating on AI.

The growing role of AI in advertising has sparked debate among industry experts. Matt Barash, chief commercial officer of the adtech platform Nova, cautioned that brands should be careful when using AI to automate the creative process. "When brands ask AI to invent stories from scratch, they don't get innovation — they get an approximation of human emotion, and the result can make headlines for all of the wrong reasons," Barash said.

Despite the criticism, some companies are pushing forward. Data suggests that brand partnerships with AI social accounts dropped by around 30% in the first eight months of 2025 compared to the same period in 2024, according to transaction data from hundreds of campaigns provided by an influencer-marketing platform.

Several major marketers made news for their AI-related mishaps this year, particularly in the food and beverage sector. McDonald's Netherlands released an AI-generated holiday ad this month but quickly removed it after viewer backlash. The 45-second spot, intended as a satirical take on Christmas calamities, featured a montage of cooking mishaps and broken bones. Some social media commentators denounced the fast-food chain as a 'McGrinch,' complaining the ad had a cynical sentiment and 'creepy' characters. McDonald's Netherlands later stated that while the ad reflected stressful holiday moments, it recognized many customers feel the season is 'the most wonderful time of the year.'

Coca-Cola also faced scrutiny for its AI-generated holiday ads. One ad, a rendition of the classic 'Holidays are Coming' spot, caught attention due to a lack of consistency, with the quantity of wheels on the trucks appearing to change as the ad rolled on. However, the production company behind the ad defended the use of AI, noting that System1 gave the 2025 ads the highest possible score of 5.9 stars for potential to drive long-term growth.

The fashion industry also grappled with the ethics of AI. H&M announced a plan to create 'digital twins' of 30 models whose images could be used for social media posts and ad campaigns. The move drew criticism from influencers and industry groups, with Model Alliance founder Sara Ziff raising 'serious concerns' about consent, compensation, and the potential to replace fashion workers like makeup artists and stylists. H&M responded that it is exploring how generative AI can support the creative process in thoughtful and responsible ways.

Similarly, Guess ads in the August 2025 issue of Vogue featured AI-generated models labeled 'Produced by Seraphinne Vallora on AI.' Social media users slammed the ad, claiming it pushed unrealistic beauty standards and threatened creative industry jobs. The cofounders of Seraphinne Vallora stated they aim to supplement the modeling industry, not replace it.

Technical issues on major platforms also contributed to the controversy. True Classic, an apparel brand, experienced a shock when Meta's ad platform swapped out a top-performing ad of a millennial man for an AI-generated 'granny' sitting in an armchair. Advertisers reported that settings within Meta's Advantage+ suite led to the platform automatically generating ad creatives on their behalf. While Meta stated that advertisers can review images before running ads, some users encountered problems where toggles switched to 'on' automatically, leading to unintended spending on AI-generated content.