Disney launches AI tool to create TV ads in July

What happened?

Disney has internally announced that it will launch a beta version of an artificial intelligence tool to create TV ads in July. This was revealed by a company executive in an internal meeting, according to a recording obtained by Business Insider and reported by The Next Web. The tool will be capable of generating scripts, video, and music automatically, allowing advertisers to produce ad spots without direct human intervention. According to the recording, the tool will initially be available to a select group of advertising partners, and Disney plans to gradually expand it. Although technical details have not been disclosed, it is speculated that it could integrate advanced language models and video generation, possibly based on proprietary technology or third-party providers like OpenAI or Google.

Context and relevance

Disney is not the first to bet on AI advertising: giants like Google, Meta, and Amazon already offer similar tools. Google launched its 'Demand Gen' tool in 2023, which uses AI to create visual ads, while Meta has integrated text and image generation into its advertising platforms. However, Disney's entry is significant due to its weight in the entertainment and TV advertising industry. The company controls channels such as ABC, ESPN, Disney Channel, and its streaming service Disney+, which together attract a massive audience of over 200 million global streaming subscribers and a TV audience of tens of millions in the US. Automating ad creation could reduce costs and speed up production, but it also raises concerns about quality and originality.

The timing is delicate: according to recent surveys, a growing portion of the public rejects AI-generated content, which they call 'slop'. A 2024 study by the Reuters Institute showed that 63% of users distrust news produced by AI, and a similar trend is observed in advertising. A 2024 Ipsos report indicated that 58% of consumers consider AI-generated ads less trustworthy than traditional ones. Disney will need to balance efficiency with the authenticity consumers demand. Additionally, the company has a history of controversy with AI: in 2023, it used AI to generate the poster for the series 'Secret Invasion', which drew criticism from artists and unions.

Impact on the advertising market

Disney's tool could democratize TV ad production, traditionally expensive and reserved for big brands. Small businesses could access high-quality creatives for a fraction of the price. The production cost of a 30-second TV ad is estimated to range between $50,000 and $500,000, while an AI tool could reduce it to a few thousand dollars. However, this also threatens jobs for creatives, scriptwriters, and producers. According to the US Bureau of Labor Statistics, there are around 30,000 jobs in advertising production that could be affected. The global TV advertising market is estimated to exceed $150 billion annually; any automation will have a considerable economic impact. A McKinsey analysis suggests that generative AI could increase marketing productivity by 5-15%, translating into billions in savings.

Moreover, Disney could use its vast content catalog (movies, series, sports) to train models that generate contextually relevant ads. For example, a car ad could integrate scenes from a Marvel movie if the advertiser wishes, opening new opportunities for branded content. However, it also raises copyright and licensing issues, as original creators could claim compensation if their work is used to train AI.

What readers should know

• The tool will be in beta in July 2025, with no general release date. Disney has not specified which AI models it will use or whether generated ads will be labeled as AI-created.
• The initiative is part of a broader trend: according to Gartner, by 2026, 30% of digital ads will be AI-generated. Additionally, a Juniper Research study estimates that spending on AI-generated advertising will reach $40 billion in 2025.
• The quality of the output will depend on training data; Disney owns a vast content catalog that could be used to fine-tune its models. However, the company must also comply with regulations like the EU AI Act, which requires transparency in the use of generative AI.
• Disney has been heavily investing in AI: in 2024, it created an internal AI team and hired experts from companies like Microsoft and Google. The ad tool is just part of its broader strategy, which includes script generation and visual effects.

Reactions and controversies

The news has generated mixed reactions. On one hand, investors see an efficiency opportunity; Disney's shares rose slightly after the leak. On the other hand, unions of writers and actors (such as WGA and SAG-AFTRA) have expressed concern about job losses. In 2023, Hollywood strikes already addressed the use of AI in content creation, and the resulting contracts included clauses limiting its use, but they do not prohibit advertising automation. Disney could face resistance if it does not guarantee transparency and fair compensation. Additionally, consumer organizations have called for AI-generated ads to be clearly labeled, something Disney has not confirmed. In the UK, the Advertising Standards Authority is already investigating cases of misleading AI-generated ads, which could set regulatory precedents.

Conclusion

Disney takes a bold step toward advertising automation, but it must carefully navigate public expectations and regulation. The tool promises efficiency but also raises questions about authenticity and the future of creative work. Advertisers and consumers should watch how this technology evolves in the coming months, especially regarding transparency and ethics. If Disney successfully implements the tool, it could redefine ad production, but if it fails to gain public trust, it could face backlash similar to other generative AI initiatives.