Flexport CEO Ryan Peterson created a compelling, fully AI-generated Super Bowl-style ad without buying airtime. This demonstrates that agencies will soon need to produce complete AI-generated V1 ads for client pitches, moving beyond simple scripts or storyboards to showcase concepts more vividly and efficiently.

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GenAI transforms advertising's core pillars. It enables hyper-personalized creatives at scale, democratizes ad production for smaller businesses, and fundamentally enhances the two most critical functions of any ad platform: predicting user behavior and measuring campaign outcomes.

With AI workflows generating thousands of creative variations in minutes, the primary job is no longer the manual act of creation. The critical skill becomes curation: building the right automated systems upfront and then strategically selecting winning assets from a massive pool of options.

Generative AI tools are a massive productivity lever for creative marketers, storytellers, and copywriters. By handling tasks like slide design or simple coding, AI removes dependencies on designers and developers, allowing creatives to execute their vision autonomously and rapidly, which can reinvigorate burnt-out talent.

AI video creative is no longer theoretical. E-commerce company Ridge reports that it is running full-blown AI-generated videos that are "winners in the ad account." These assets now command up to a third of the company's total ad spend, proving their real-world performance.

The largest advertisers on platforms like Meta launch over 10,000 new creatives a year, equating to more than 40 per workday. This massive scale of experimentation is manually impossible for most companies, creating a clear market need for AI platforms that automate and scale video production.

Early AI ads, like OpenAI's first, positioned AI as a monumental step in human history. The next wave is expected to be more pragmatic, focusing on specific, relatable use cases for the average consumer. This marketing evolution reflects the technology's maturation from a conceptual wonder to a practical tool for the mass market.

Upcoming tools like Sora automate the script-to-video workflow, commoditizing the technical production process. This forces creative agencies to evolve. Their value will no longer be in execution but in their ability to generate a high volume of brilliant, brand-aligned ideas and manage creative strategy.

According to Higgsfield AI, a new market is emerging where Fortune 500 brands are bypassing large ad agencies and hiring small (10-30 person) AI-native firms to create social media commercials. This demonstrates a strategic shift towards agile, specialized partners for AI-driven creative production.

Higgsfield's CEO notes a key trend: the best-performing AI-generated ads don't try to pass as real. They lean into a distinct AI aesthetic, suggesting that audiences are not only accepting but are also engaged by this new visual style, prioritizing creativity over photorealism.

Traditionally, creating variations of creative assets like ads or designs required significant time and cost. With AI, generating countless alternatives is nearly free. This allows marketers and creators to iterate endlessly on a promising idea, moving from "give me 5 options" to "give me 5 more based on this best one" repeatedly.