Why Use AI in Advertising? 5 Reasons for Marketers

In this new era, AI is leading the change. It can write headlines, optimize brand campaigns, and produce original graphics. With AI-generated advertising running throughout the NBA Finals, marketers can no longer afford to ignore it.

Here are five powerful reasons why it’s time to make AI part of your marketing strategy. From smaller budgets to faster results, you’ll discover how artificial intelligence can help you work smarter, not harder. 

What is AI-generated advertising?

AI-generated advertising refers to commercial content—including text, images, and videos—created using artificial intelligence and machine learning algorithms. AI image generation tools, such as Depositphotos AI Image Generator, Midjourney, and Gemini, together with the text-oriented ChatGPT, are widely used to create high-quality advertising with AI.

What do marketers think about AI-generated content?

At first, many marketers were skeptical about using AI-generated ads in brand campaigns, unsure whether AI could deliver the quality, originality, and authenticity their brands required.

In 2025, it’s clear that AI doesn’t threaten human creativity—actually, it can produce high-quality content that resonates with consumers. Kalshi proved this with its AI-generated ad, which aired during the NBA Finals. Although it cost just $2000 to create, the ad went viral and significantly boosted brand awareness.

But Kalshi isn’t the only company using AI in its advertising campaigns. In 2024, nearly 70% of marketers reported employing artificial intelligence in their marketing strategies—up from 61.4% the year before.

How do people perceive ads created with the help of artificial intelligence?

One of the dangers of AI in advertising is that half of consumers find AI-generated ads uncomfortable. After researching 17 global markets, YouGov discovered that consumers feel uneasy about companies using AI to create brand ambassadors, generate ad images, or edit them.

Still, there’s good news. The same research revealed that nearly 40% of consumers are comfortable with AI-generated product images and brand ambassadors. With such a significant portion of the audience open to this type of content, the future of AI in advertising looks promising.

Top 5 reasons to use AI in ads

1. Quick results

The main reason to use artificial intelligence in your marketing efforts is to cut production time. While agreeing on an ad campaign can take weeks, AI can generate high-quality results in days, hours, or even minutes.

Moreover, you can reduce the time spent on routine tasks, such as segmenting audiences, drafting content, and coordinating with creative teams. This allows you to focus more on creativity, strategy, and big-picture planning. 

2. Smaller marketing budgets

Kalshi’s commercial for the NBA finals demonstrated that AI ads can be both creative and cost-effective. This leads us to the second key benefit of using artificial intelligence in marketing: cost savings.

As a rule of thumb, the average B2C company should allocate 5 to 10% of its revenue to marketing. However, AI generation tools enable businesses to achieve the same or even better results with a smaller marketing budget.

On top of that, most companies simply cannot afford to spend thousands or even millions of dollars on advertising campaigns. Yet with AI, small businesses can compete with larger players without stretching their budgets.

3. Effortless personalization

Personalizing advertising without AI is complex, slow, and often inefficient. Marketers must manually segment audiences, distribute creative tasks across teams, and oversee the entire process. As a result, many companies usually rely on one-size-fits-all ads that fail to resonate with a significant portion of their target audience.  

Artificial intelligence can personalize content effortlessly. Simply provide the program with relevant data, and quickly receive tailored content that appeals to each demographic. This approach helps increase engagement and conversion rates without the manual grind or significant investment in human resources.

4. Creative insights

AI that creates ads offers more than just beautiful visuals. It helps you test different ideas and gain creative insights into what truly resonates with your target audience.

To gather these insights, create multiple ad variations and track which ones generate the most clicks and conversions. By changing visuals, headlines, or calls to action in each variation, you can identify the most effective combination for your audience.

5. Competitive advantage

Lastly, using AI in advertising is a powerful way to gain a competitive advantage. Kalshi made history as the first company to run an AI-generated ad during the NBA Finals. Since AI in advertising is still a fresh concept, your company also has a chance to make headlines.

Here are a few ideas to disrupt the industry: 

• Run an AI-generated ad in an unexpected place: Surprise your audience by playing your ad during a metaverse event or before movie trailers at the cinema. 

• Turn your viewers into co-creators: Ask your audience what they want to see, then use AI to bring their ideas to life.

• Redo your old campaigns with AI: Reimagine previous content by feeding AI your company’s past brand assets. 

Conclusion

Despite some skepticism, AI-generated advertising opens the door to dynamic, engaging, and hard-to-copy marketing campaigns. It empowers brands to experiment with bold ideas and connect with new audiences—all without stretching marketing budgets or overwhelming creative teams. So, if you needed a reason to start using AI in your advertising strategy, now you have more than one.