Move over, Mad Men. The future of video ads is being crafted by prompt engineers and generative AI, and it’s the smaller and midsize brands that are racing ahead while the big guys are still debating whether ChatGPT is “secure enough for marketing.”
According to the latest IAB report, over half of ad buyers are already using generative AI to create or enhance digital video. That’s not a maybe. That’s not a someday. That’s a right now. And if you zoom in, it gets even spicier: nearly one-third of all digital video ads are built using generative AI today.
By 2026, that number jumps to 39%. For smaller and midsize brands? It’s already projected to hit 45% and 42%, respectively.
And you know what? I love to see it.
David vs. Goliath, but Make It AI-Enhanced
This shift says a lot about where the market is headed and about who’s hungry enough to innovate. It’s not the Fortune 100 with the 14-month procurement cycles and 22 layers of approval. It’s the nimble, gritty, up-and-coming brands using generative AI to do what used to take a production team, a storyboard, and a nervous intern fetching LaCroix for the team.
They’re creating multiple versions of videos targeted by audience. They’re adjusting visual styles on the fly. They’re refining for context in real time. And they’re doing it without million-dollar retainers or 6-week timelines.
At Human Driven AI, we call that operationalizing AI, and it’s one of the smartest plays you can make right now.
Big Brands, Big Bottlenecks
Meanwhile, large brands are lagging. According to the same report, only 36% of their digital video content is expected to be AI-generated by 2026. Why? Process bloat. Fear of innovation. And honestly, a lot of folks still think AI video = uncanny valley horror show. (Spoiler: it doesn’t, not anymore.)
But here’s the thing: generative AI isn’t about replacing creativity. It’s about amplifying it. About letting your team scale the heck out of their best ideas, faster and with fewer bottlenecks.
And if your agency or brand hasn’t trained your team on how to do that? You’re already behind.
CTV Is Growing Up, And So Are Expectations
Let’s not ignore the other star of the IAB report: connected TV. CTV is becoming a “must-buy” right alongside social video. Buyers expect 47% of CTV inventory to be biddable this year—up from 34% in 2024. That’s a massive jump, and it’s driven by the same hunger for flexibility, personalization, and measurable ROI.
Even here, the need for human strategy remains strong. Over 80% of buyers say they still need human involvement to customize CTV deals. That’s your cue: AI + humans = power combo.
What This Means for You (and Your Strategy)
If you’re a marketer, a PR lead, or an agency exec still wondering whether it’s “too early” to lean into AI video and CTV, let me tell you: the early train left the station in 2023. The train you’re seeing now? It’s the last one before you’re stuck chasing your competitors’ taillights.
So here’s your to-do list:
- Train your team on how to actually use generative AI for content creation. (Not just “we have a ChatGPT license.” I mean real, strategic use.)
- Create your prompt libraries and brand-specific AI frameworks so your outputs are always on message.
- Experiment with multivariate video generation—personalized by audience, channel, mood, even time of day.
- Reimagine your creative process with AI as the first draft, not the final word.
We help brands do this every day. And the results? Faster speed-to-market. More campaign variations. Lower costs. Higher engagement. You know, all the stuff your CMO dreams about.
The AI video revolution is already here. The only question is whether you’re in the director’s chair… or stuck watching someone else’s highlight reel.
Let’s roll.
Remember, AI won’t take your job. Someone who knows how to use AI will. Upskilling your team today, ensures success tomorrow. In-person and virtual training workshops are available. Or, schedule a session for a comprehensive AI Transformation strategic roadmap to ensure your team utilizes the right AI tech stack and strategy for your needs. From custom prompt libraries to AISO, Human Driven AI is your partner in AI success.
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