Disney is preparing to launch a beta version of an AI-powered tool for generating TV advertisements in July, marking a significant step in how major media companies are automating ad creation. The tool can generate scripts, video, and music in a single workflow, according to an internal company meeting. This positions Disney alongside other major ad sellers like Google, Meta, and TikTok, which have already rolled out their own AI ad-generation tools for advertisers.

What Can Disney's New AI Ad Tool Actually Do?

The AI tool is designed to help advertisers create connected TV spots, which are ads that run across Disney's streaming and television properties. According to Adam Smith, the chief product and technology officer for Disney Entertainment and ESPN, the tool orchestrates the entire creative process in one place. Smith noted that "every week they send me examples of these, and I will say every week the examples get better and better," indicating rapid improvement in output quality.

Smith

The tool is particularly aimed at small and medium-sized advertisers that lack the resources to hire creative agencies or produce video assets from scratch. Rather than starting from nothing, advertisers can customize existing creative materials by factors like audience demographics and context, while maintaining human oversight throughout the process. Eventually, the tool will be available through Disney's self-service ad platform, a dashboard where advertisers can manage and run campaigns across Disney properties.

How Can Advertisers Benefit From AI-Generated Ads?

• Cost Reduction: Small and medium-sized advertisers can avoid paying creative agencies thousands of dollars to produce a single 30-second video spot, making TV advertising more accessible to brands with limited budgets.
• Speed and Customization: The tool enables advertisers to quickly create multiple versions of ads tailored to different audiences and contexts, a process that traditionally requires significant time and resources.
• Turnkey Workflow: By combining script generation, video creation, and music production in one orchestrated system, the tool simplifies what is normally a multi-step, multi-vendor process.

Alicia Weaver, vice president of media activation at the media agency Mediassociates, explained the practical appeal: "It takes time to create different versions. Something that helps facilitate that in a more turnkey fashion is definitely a benefit". Ashwin Navin, CEO of Samba TV, an ads measurement service, added that such a tool could open Disney up to a broader pool of advertisers with smaller budgets who previously couldn't afford professional video production.

Why Are Advertisers Still Hesitant About AI-Generated Content?

Despite the potential benefits, advertisers are increasingly cautious about AI-generated content. The industry has moved beyond the initial excitement phase and is now grappling with concerns about consumer backlash against what some call "slop," or low-quality AI output that damages brand reputation. Weaver emphasized this shift in sentiment: "We've reached the point with AI where clients want to make sure their brand is represented correctly. There's a lot more scrutiny on AI now that we've seen what it can do. It's not a shiny new object anymore".

Weaver

Before recommending Disney's tool to clients, Weaver said she wants to understand how Disney will ensure the generated ads meet quality-control standards and accurately represent brands. This reflects a broader industry concern that as AI tools become more accessible, the risk of producing substandard content that reflects poorly on advertisers increases. The tool's success will depend not just on its technical capabilities, but on Disney's ability to maintain quality standards that protect brand integrity.

The July launch of Disney's AI ad tool represents a critical moment for the advertising industry. If the tool delivers high-quality, customizable ads at scale, it could democratize TV advertising for smaller brands. However, if quality concerns persist or consumer perception of AI-generated ads sours further, adoption may stall. The coming months will reveal whether AI-generated advertising can truly balance efficiency with the brand protection that advertisers demand.