Why are consumers upset with Coca-Cola’s AI-generated remake of its holiday ad?

Coca-Cola's Christmas ads are always something to look forward to but this year, it's AI-generated reboot of its classic ad, “Holidays Are Coming” caused quite a stir.

The ad stars out with panoramic shots of nature before panning to the iconic shot of Coca-Cola trucks making their way through the snow into neighborhoods. As the trucks move slowly, viewers see animals popping out of trees, homes lighting up for the festivities and more. 

However, the AI-generated ad saw largely negative comments with many saying they found it "distasteful", "scary", "soul-less" and "uninspiring". Some even said it looked "cheap" and that it did not bring forth the feelings that holiday ads should. 

According to media intelligence firm Truescope, public opinions were divided on the ad with 83% showing neutral sentiments focused on Coca-Cola’s use of generative AI in their Christmas advertisement.

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7.9% of sentiments were mixed with netizens raising questions on why Coca-Cola had to use generative AI in remaking one of their most memorable advertisements and 1% revolved around the claims that a lot of the details in the advertisement seemed “off”. There were also some that said that using an energy intensive technology is not efficient.

7.4% were positive sentiments focused on the company’s statement about using AI as an 'efficient' way of saving time and money.

Coca-Cola’s use of generative AI shows that there is still a polarised view among the people, said Truescope. There were some concerns about artists and actors, with some stating that the use of AI takes away opportunities from them. There were also claims that the use of AI in art makes it feel soulless and unfeeling.

Some also argued that the use of AI was not a big deal, especially since it allowed the company to achieve their visual goal in the end.

The ad was crafted by Pereira O’Dell’s AI lab, Silverside with the aim to integrate AI as a creative tool rather than the creator.

Although advanced technology was key, Silverside AI’s team of art directors, artists, animators, and musicians worked together to 'bring the caravan back', it said.

Their expertise aimed to preserve the nostalgic charm that’s been captivating audiences for nearly three decades. Originally, a project of this scale would have taken over 12 months, but with the help of AI, its team brought it to life in just two months, it added. 

Rendering 10,000 frames, creating 5,000 video segments, and involving over 40 creatives across North America, South America, Europe, and Asia—including a live choir—this project pushed the limits of AI while highlighting the irreplaceable human touch, it said. 

"Using a blend of proprietary technology and market AI tools, Silverside AI empowered our team to generate top-level ideas and collaborate with Coca-Cola seamlessly, enabling rapid customisation for different regions in real time," added Silverside AI in its statement.

Why are consumers so upset?

Gen AI has become so integrated in everything that we do that the response could be considered surprising. After all, gen AI is among the top three business priorities for 83% of APAC C-suite executives. 54% said their organisation had a clear and defined Gen AI strategy, while a further 40% said they had started working on a Gen AI strategy for their business. 

This is according to research by Salesforce where 1243 leaders from large businesses across the APAC region were surveyed. 

Additionally, AI serves as a catalyst for consumer trust, with six in 10 consumers in APAC saying they trust organisations the same or even more when generative AI (gen AI) is used. 

In fact, more customers in China (35%) and India (29%) say that the use of gen AI will increase their trust in an organisation, as compared to customers in Singapore (23%) and Australia (19%). 

Conversely, 39% of APAC customers say that the use of gen AI would make them trust an organisation less. This is according to a recent study by Vodafone Business where more than 760 business and 1760 customers were surveyed across Singapore, China, India and Australia. 

So why are consumers so upset with Coca-Cola's use of AI in its holiday ad? 

According to Don Anderson, CEO of Kaddadle Consultancy, while the ad is a slight improvement over previous AI-generated ads that we’ve seen, namely the Toys “R” Us ad launched in June this year, the presentation is still quite synthetic and slightly jarring in many ways.

"As soon as the reindeer and polar bear appear it’s immediately apparent that we’re being fed yet another AI generated ad, and that’s not exactly a good thing given the widespread consumer backlash that has already surfaced from past advertising experiments," said Anderson, adding that the general intent of creating excitement and anticipation around the holiday season is there, but the end result is lacking the necessary emotional effects which Coca-Cola's annual campaign is known for.

He added: 

It’s essentially more of the same tone-deaf marketing.

Anderson went on to explain that without real human faces, the Coca-Cola ad simply doesn’t come across as feeling very genuine, which is particularly important given the seasonal slant.

It’s also very important for what Coca-Cola is trying to represent for consumers, which is a symbol of happiness, joy and togetherness, and provider of positive experiences, he said, adding:

There isn’t a lot of holiday magic to this – it comes across as lazy, disconnected and gimmicky marketing.

Perhaps Coca-Cola’s consumer sentiment data suggested something different before they started prepping this ad, but it’s been clearly communicated in the media that there is ongoing backlash and resistance toward the use of AI due to fears about loss of creative jobs, said Anderson. "So why go there at this time, the holidays, when many consumers are seeking increased emotional support," he said. 

Anderson went on to explain that marketing is essentially about getting your timing right, which they clearly didn’t do with this. For one, they could have selected a different campaign rather than going with something that is iconic. Or, instead of relying entirely on AI generated modeling, they could have created a better balance between AI and real life elements to demonstrate the growing fusion between traditional production techniques and AI.

"I would actually ask why they need to acknowledge the world’s adoption of AI – consumers are clearly already aware that is happening. Why beat them over the head with it, where others such as Toys “R” Us have and failed," he said. "Why not present something more authentic and sincere for this annual campaign, stick with the tried and true ‘hearts and minds’ approach in advertising, and play to current sentiment in the world that we’re all in need of a big, warm blanket given what’s going on around us."

Anderson added that these are challenging times for marketers and brands and it’s hard to avoid the feeling of being left behind in the adoption of new technologies and keeping pace with trends, particularly AI and all the noise it has created.

"Marketers need to exert caution when being swayed by the bright shiny new toys and gimmicks, because if that is the sole purpose for launching a campaign then they’ve already missed their mark," he said. "Marketers need to keep reminding themselves to step back, adopt bigger picture thinking, use data to influence their decision making while ensuring their creative ideas truly align to the brand’s core mission, ideals and values. And of course, within the budgets they’ve been given."

A lack of imagination?

Adding to his point, Christopher Smith, founder of Rock Paper Scissors, said that for him, the ad did not hit home not because of the use of AI but because of the lack of imagination, emotion or culture. 

"Christmas and Coca-Cola are loaded with nostalgia, and that is something that is impossible to separate," he said. "So, I think Coca-Cola didn’t do itself any favours here."

Smith added: 

It’s the art of storytelling that is missing here. What we were served was short AI generated images and motion, snapped together with a familiar holiday jingle. It was dead on arrival.

Smith added that while he supports Coca-Cola's attempt to use AI and supports its efforts but that it should have explored new territory using the new technology.

"Imagine if Coca-Cola would have first worked on a new, original story, true to their heritage and bottle full of nostalgia, instead of dusting off something from years ago, using the time they had anticipating saving on the production side of the project, to craft a beautiful story," he said, adding that the company needs to remember its roots which are emotive and culturally relevant storytelling.

Smith added that marketers should experiment with AI but that they should never start the process saying that they are going to create an AI-generated commercial. 

"Start with the story. If it rings true using, illustrations, a flip book, a simple sketch of the visual narrative, even hand puppets, then look at how and where the technology should be applied. Not every Gen AI tool is set for prime time yet, and surely not every AI-augmented creative is ready either, so some stories and some ideas in those stories might need to be changed. If your goal is to stick to a fully AI-augmented production process. But the story, well crafted, needs to come first," he said. 

Prioritising human-centric approaches

Meanwhile, Tianyu Xu, founder of TYAI, an AI-based consultancy, explained that as the world becomes increasingly AI-powered, he believes it’s crucial for organisations to prioritise human-centric approaches over AI-centric ones, particularly in the initial stages of
adoption.

"AI should enhance human capabilities, filling in gaps or amplifying creativity, rather than replacing the human touch entirely," he said. 

He added that he believes that this ad alone is not representative of how Coca-Cola handles AI in their creative workflows.

"I’ve seen other content with a significant human touch. Speaking of this Christmas AI ad, they could have involved real human actors (as many comments suggest). It didn’t need to be 100% AI-generated," he said. "By blending human presence with AI enhancements, they could have created a more authentic and emotionally resonant experience. Alternatively, they could have chosen a completely fresh theme—something unexpected—to surprise and delight their audience. With AI, imagination has no limits."

Xu added that additionally, an iterative, test-driven approach would have been beneficial. Running multiple versions of the campaign at a smaller scale on social media, gathering feedback, and refining
the content could have mitigated the risks. Expanding their audience surveys beyond their usual circles would have provided more diverse insights, helping them better align the final product with audience expectations.

Xu suggested three key ways marketers can better adopt AI into their campaigns without drawing backlash:

1. Adopt a human-centric design, with AI as an enabler

Always keep humans in the loop, regardless of how advanced or automated your AI systems are.

While AI can fully automate tasks such as generating social media posts or emails, without human creativity and intuition, the content risks coming across as inauthentic. The most effective marketing combines human insight with AI’s speed and scalability.

2. Address cognitive biases by seeking diverse perspectives

It’s easy to fall into an echo chamber where everyone in your immediate circle endorses a piece of content. However, those outside your circle may view it differently.

Before launching your campaign, conduct extensive testing with your target audience. AI enables faster ideation and iteration, allowing you to refine and optimise based on real-world feedback.

3. Be strategic about where and how to use AI

Just because you can use AI doesn’t mean you should apply it everywhere. Assess where AI adds the most value in your marketing workflow.

It might be ideal for developing proofs of concept or creating minimum viable products, saving time and resources. Even in production, where AI can play a significant role, human oversight is critical. Many of the popular AI videos are still directed, edited, and, in some cases, acted by humans.

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