Snack maker Mondelez is using a new generative AI tool to reduce marketing content production costs by 30–50%.
This was announced by one of the company’s executives, Reuters reports.
The packaged food manufacturer began developing the tool last year in collaboration with advertising company Publicis Groupe and IT firm Accenture.
Mondelez expects the tool to be able to create short-form television commercials that will be ready to run as early as next year during the holiday season, and possibly during the 2027 Super Bowl, said John Halvorson, Mondelez’s global senior vice president of consumer experience.
Chocolate maker Cadbury has invested more than $40 million in the tool, Halvorson said, adding that the savings will increase if the tool can create more complex videos.
Faced with tariffs and shrinking consumer budgets, Mondelez, like other consumer goods companies, is looking to implement artificial intelligence to cut costs on advertising agencies and speed up the development and sale of new products.
Rivals such as macaroni and cheese maker Kraft Heinz (KHC.O) and Coca-Cola are also testing artificial intelligence for advertising.
In 2024, Coca-Cola launched holiday commercials created using artificial intelligence, although some consumers ridiculed the computer-generated characters for lacking real emotion.
