It happens the same way every time. A big brand unveils a new campaign that looks flawless. The lighting is perfect, the models look otherworldly, and the internet is full of praise. Then someone zooms in, squints, and asks the question that changes everything: “Wait, is that AI?”

What follows is always the same. A social media frenzy, a few viral think pieces, a vague statement from the brand, and then complete silence. Until the next brand does it again.

This month, Guess, J.Crew, and Skechers are the latest names accused of using AI-generated imagery in their ads. None of them have confirmed it, but their silence says enough.

The Cat’s Already Out of the Bag

According to Jon Weidman, head of brand content at Wavelength, “Things that used to require a photo shoot are now being replaced by AI. Your feed is full of content that wouldn’t exist without these tools. I don’t see a world where the cat goes back in the bag.”

He’s right. A recent Interactive Advertising Bureau (IAB) report revealed that 90 percent of digital ad buyers are already using or planning to use generative AI for video ads. The shift is not coming; it is already here.

The Budget Reality

So why are brands suddenly comfortable with synthetic models? Two words: budget cuts.

Marketing budgets have flatlined. A Gartner report showed zero growth this year, and many brands are cutting production costs by half. That $750,000 photoshoot? Now it’s $300,000. Fewer scenes, smaller crews, and a lot of creative gaps that AI can fill for a fraction of the cost.

“It’s all about the budget,” says Abigail Olivas, head of strategy at No Single Individual. “We’re in a cultural swing where people are getting used to AI. Brands feel empowered. They see it as the future.”

But it’s not just about saving money. It’s about speed.

“AI gives brands the ability to respond faster and connect quicker,” explains Scott Thibodeaux, VP and creative director at Transmission. “You can produce more with the same resources.”

The Authenticity Problem

Despite the convenience, there’s one thing AI still can’t replicate: authenticity. Consumers still crave what feels real, especially in industries like fashion and beauty where trust is everything. A single AI misstep can instantly erode that trust and make customers feel deceived.

Even within agencies, there’s hesitation. “People are nervous,” admits Jason Carmel, global creative data lead at VML. “We’ll see drips and drabs, not a total replacement anytime soon.”

The Quiet Normalization

Still, the direction is clear. AI-generated imagery is shifting from controversial to commonplace. Marketers are no longer debating if they should use it. They’re figuring out how far they can take it.

In the near future, the conversation will not be about whether a brand used AI at all, but how convincingly they blended it with authentic content. Because the new competitive advantage is not authenticity versus automation, it is how seamlessly brands can merge the two.

The Bottom Line

AI-generated campaigns are here to stay. While some brands will struggle to balance ethics and efficiency, others will use the technology to redefine creativity and connection. The key is honesty, not pretending AI is not part of the process but using it transparently to tell better stories.

The brands that win will not be the ones hiding their tools. They will be the ones using AI with intention, creativity, and clarity.