IAB Reports Video Advertisers Are Embracing AI

7 Mins
The world of advertising has always thrived on reinvention. From print spreads to radio jingles to Super Bowl spots, each new medium has pushed marketers to adapt. Today, the game has shifted again. 

The world of advertising has always thrived on reinvention. From print spreads to radio jingles to Super Bowl spots, each new medium has pushed marketers to adapt. Today, the game has shifted again. 

Video dominates digital marketing, and now artificial intelligence is changing how those videos are made.

According to the IAB 2025 report, nearly 9 out of 10 video advertisers are already using or planning to use AI. By 2026, about 40% of all ads will be AI-assisted. That’s not a footnote in marketing history; that’s a revolution happening in real time.

This blog unpacks what AI video ads really mean, how they started, why adoption is exploding, and how tools like AdGPT make it possible for even the smallest brand to compete.

What Are AI Video Ads?

AI video ads are simply advertisements created or enhanced using artificial intelligence. Instead of hiring actors, booking a studio, and editing for weeks, brands can generate videos in hours with an AI video ad creator.

Here’s how it works:

  • AI writes scripts that sound natural and persuasive.
  • Visual models turn text into footage.
  • Voice cloning handles narration.
  • Tools customize ads for different audiences or platforms.

Whether it’s TikTok clips, YouTube bumpers, or connected TV campaigns, video advertisers are leaning on AI to shorten the path from idea to screen.

A Quick History of AI in Video Advertising

The story didn’t begin overnight.

In the early 2010s, marketers relied on basic templates. Automated slideshow ads with stock footage were the cutting edge. It wasn’t pretty, but it was efficient.

By 2015, machine learning entered the scene. Algorithms optimized ad delivery, deciding who saw which videos. Creative itself was still human-made, but targeting had become smarter.

Then came the 2020s. Tools like Synthesia and Runway made headlines with AI-generated presenters and video editing. Suddenly, making an explainer or demo ad required no cameras at all.

Fast forward to 2025. Video advertisers are using AI not just to enhance visuals but to generate entire campaigns. The shift from novelty to necessity is complete.

The Current Landscape

The numbers don’t lie. The IAB report reveals that 22% of ad creatives in 2024 were already AI-assisted. That figure will nearly double to 40% by 2026.

Why the leap? Video advertising is expensive and time-sensitive. AI slashes both costs and timelines. Smaller brands, in particular, are embracing it faster than large corporations because agility matters more than bureaucracy.

Connected TV is another growth driver. With nearly half of CTV inventory now programmatically biddable, AI tools are stepping in to create adaptive content that suits every screen.

Digital ads made up 72% of revenue in 2024 and are projected to hit 80% by 2029, fueled by AI and hyper-personalization. For video advertisers, the landscape has never been this competitive—or this full of opportunity.

Benefits of AI in Video Ads

The advantages aren’t subtle.

  • Affordability: High-quality creative used to require massive budgets. Now, startups can launch polished videos without breaking the bank.
  • Speed: What once took weeks can be done in a day. Some marketers even produce overnight campaigns.
  • Scalability: AI generates dozens of ad variants for A/B testing at lightning speed.
  • Personalization: AI enables micro-targeting. A sports fan in New York and a gamer in Tokyo can both see custom versions of the same campaign.
  • Accessibility: Small businesses can compete with Fortune 500 brands.

For video advertisers, it’s not just about keeping up; it’s about finally having tools to win.

Challenges & Concerns

Of course, every shiny tool has sharp edges.

AI still struggles with authenticity. Some ads risk looking generic or uncanny. Viewers crave human creativity and storytelling, and AI can’t fully replace that.

There are also brand safety concerns. An AI ad maker video tool may accidentally pull in visuals that clash with company values. Governance is thin, and regulations lag behind adoption.

Bias is another issue. Just as early facial recognition tech showed bias, AI-generated imagery can misrepresent people or cultures. Video advertisers need to keep human oversight in the loop.

The takeaway? Use AI as an ally, not a replacement.

Case Studies & Real-World Use

Big brands aren’t shy. Coca-Cola experimented with AI-generated creative to reimagine iconic imagery. Gaming companies roll out trailers built with video ad AI tools to test multiple hooks quickly.

But the most exciting stories come from smaller businesses. Local shops, e-commerce startups, and coaches are producing slick ads for Instagram and TikTok without hiring agencies.

This democratization means video advertisers of all sizes now have a shot at standing out.

Take Scan2Remember, for example. This niche e-commerce brand sells QR memorial plaques that help families preserve the memories of loved ones digitally. Creating video ads for such a sensitive, emotional product traditionally required professional videographers and careful storytelling. Now, with AI video tools, they can produce heartfelt, respectful ads that resonate with grieving families—testing different messaging angles and formats in days rather than months. It's a perfect example of how AI democratizes advertising for businesses serving meaningful, personal needs.

Enter AdGPT: AI Video Ads Made Simple

Here’s where things get interesting. Most marketers don’t want to juggle 10 different tools to make a single campaign. That’s why AdGPT’s AI Video Creator stands out.

AdGPT is designed to streamline the messy process. It can generate ad scripts, resize videos for different platforms, and tailor tone and visuals for specific audiences. It’s an ai video ad generator with practicality baked in.

For video advertisers, this means you can:

  • Write, edit, and customize in one place.
  • Instantly adapt ads for TikTok, YouTube Shorts, or CTV.
  • Test multiple variations without spending days re-editing.

If you’re wondering how to create AI video ads without overcomplicating your workflow, AdGPT is your answer.

The Future of AI Video Ads

Where does this all lead?

Expect real-time personalization to grow. Imagine watching a connected TV ad where the actor mentions your city by name. That’s not science fiction—it’s on the horizon.

3D and AR will also integrate with AI, making interactive ads feel immersive. And ethical frameworks will become mandatory as regulators demand transparency in AI-generated media.

For video advertisers, the future looks both exciting and demanding. Those who adapt early will thrive.

How to Get Started as a Brand

Not sure where to begin? Here’s a path:

  1. Pick your platforms. Decide if TikTok, YouTube, or CTV should be your first target.
  2. Use an AI partner. A tool like AdGPT’s Top 10 AI Ad Maker Video Tools 2025 Guide can help you compare options.
  3. Start small. Test one campaign. Measure performance.
  4. Blend AI with creativity. Use AI to handle repetitive work, but let human strategy steer the ship.
  5. Scale with confidence. Once ROI looks solid, produce larger campaigns.

That’s how to create a video ad using AI that works in practice.

Why This Matters Now

AI in video ads isn’t hype anymore. It’s here, reshaping how video advertisers plan, build, and launch campaigns. The early days of templates and slideshows are gone. We’re now in an era where creativity, speed, and scale can coexist.

If you’re in marketing, ignoring this shift means falling behind. If you embrace it, you’ll unlock possibilities that used to cost millions. And with tools like AdGPT, making AI-driven creative doesn’t just sound futuristic. It’s accessible today.

Video ads are evolving fast. The smart move is to evolve with them.

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