The New Generation of Advertising with Artificial

IntelligenceFrom Analysis to Creative Production

The use of artificial intelligence in advertising and marketing has been present in major companies for several years. These companies have invested in AI technologies, particularly in the areas of big data analysis and consumer behavior simulation, to rapidly and accurately identify market needs and customer buying patterns. Initially, AI was primarily used as an analytical tool to better understand the market and optimize marketing strategies. However, with the rapid advancement of generative AI and the emergence of new technologies like augmented reality (AR), a significant transformation has taken place in how this technology is used in advertising and marketing.

Today, major brands such as Coca-Cola are increasingly investing in generative AI to create personalized content and design unique shopping experiences for consumers. Especially in the field of augmented reality, this technology has helped advertising not only visually but also through interactive experiences to build stronger connections with audiences. As a result, AI is no longer limited to analyzing customer and competitor data but has now become a creative tool for developing and promoting new products in the market.

These developments have had a profound impact, particularly in digital advertising, where brands can now offer fully personalized experiences tailored to each customer’s needs. AI has evolved from a data analysis tool to a strategic partner in product creation and promotion, helping brands engage more directly and effectively with consumers.

In the following, we explore several advertising campaigns launched by various companies using the power of generative AI. These campaigns demonstrate innovative uses of this advanced technology to create unique and personalized advertising experiences for audiences.

Investing $1.1 Billion in Digital Transformation with AI and Cloud Technologies

Coca-Cola’s Five-Year Plan for Digital Transformation
Over the next five years, Coca-Cola will continue to focus on boosting global productivity and innovation, relying on cloud platforms and generative AI to develop and test various applications across its business, including employee productivity enhancement.

Expanding Partnership with Microsoft
Coca-Cola is expanding its partnership with Microsoft, which began in 2020 with an initial $250 million investment. This partnership increases Coca-Cola’s access to Microsoft platforms, including Power BI, Dynamics 365, Defender, Fabric, and Microsoft 365. This investment has accelerated digital transformation across the organization and among Coca-Cola’s global bottling partners.

Neeraj Tolmare, Global Chief Information Officer at Coca-Cola:
“This next step is another milestone in transforming Coca-Cola into a digital-first enterprise powered by emerging technologies.”

Coca-Cola’s AI Innovations
In recent years, Coca-Cola has tested various AI applications across marketing and supply chain operations. Key innovations include:

• Generative AI-based Digital Assistant: In development to enhance customer experience, streamline operations, boost innovation, and uncover growth opportunities.
• Advanced Marketing: In the RGM project, customers who received AI-powered notifications were more likely to purchase recommended products.
• Next-Gen QR Codes: Printed on soda packaging, directing users to a platform where they could design their future world using generative AI.
• Personalized Ads in Times Square: Collaborating with generative AI platforms to let consumers create Coca-Cola ads displayed in Times Square.
• Early Collaboration with OpenAI: To generate ad copy, images, and personalized messages using ChatGPT and DALL·E.

A Realistic Look at Risks
Despite extensive investments, Coca-Cola is aware of innovation challenges. To reduce the high failure rate of innovation projects, it has adopted a more strategic, data-driven approach to make better decisions regarding digital investments, AI adoption timing, and use cases.

L’Oréal’s Generative AI Lab: A Content Personalization and R&D Innovation Engine

L’Oréal has taken significant steps in beauty technology and recently introduced several innovative initiatives in both R&D and consumer products.

Two of L’Oréal’s key investments leverage generative AI to enhance personalization and innovation in beauty.

Generative AI Initiatives at L’Oréal
Over the past eight months, L’Oréal has quietly operated its generative AI-powered beauty content lab, CREAITECH. This lab utilizes large language models (LLMs), diffusion models, and partner technologies. It has served as a testing ground for over 20 projects and hosted workshops that resulted in the creation of over 1,000 beauty visuals.

L’Oréal aims to use this innovative space to produce content aligned with brand identities for its 37 sub-brands. La Roche-Posay and Kérastase are among the brands already using these services.

Smita Dubey, Chief Digital & Marketing Officer at L’Oréal Group, says:
“This lab allows us to train generative AI to understand our brands’ unique visual codes and to launch creative campaigns faster.”

She emphasized:
“What’s crucial is that we can do this without violating AI ethics principles. For example, we don’t use realistic or simulated images of faces, bodies, hair, or skin to promote or exaggerate product claims in our external communications.”

Creative Partnerships with Leading Brands
The lab also functions as a hub for skill-building and innovation, partnering with Meta to push creative boundaries in 3D, augmented reality, and AI. Brands like L’Oréal Paris, Lancôme, and La Roche-Posay are pioneers in applying the tools and techniques developed through this collaboration.

L’Oréal has also launched L’Oréal Paris Beauty Genius, an AI-powered beauty assistant offering personalized diagnostics, product recommendations, and beauty tutorials.

Barbara Lavernos, Deputy CEO of L’Oréal in charge of Research, Innovation & Technology, says:
“L’Oréal has long led in beauty tech. We believe technology can expand the limits of beauty to improve lives. Through advanced diagnostics, augmented beauty services, AI assistants, creative AI, and pioneering electronic tools, we’re building a future of beauty that’s more personalized, inclusive, and responsible.”

Inclusive Skin Technology
L’Oréal also unveiled a new inclusive skin technology that combines biology, mechanics, and electronics. It can simulate skin conditions like eczema, acne, discoloration, or healing and sets new standards for product testing and skin research.

Personalizing Lingerie Design with Generative AI

Adore Me, a direct-to-consumer (DTC) lingerie brand and a digital subsidiary of Victoria’s Secret, restructured its operations in 2021 to focus more on emerging technologies. One result is the launch of AM by You, a generative AI-powered design tool allowing customers to create their own custom lingerie designs.

Available in beta on Adore Me’s website, this tool lets users input text to generate personalized print designs. The proprietary AI technology is trained to produce outputs resembling textile prints rather than photorealistic images. During the beta, 70% of users submitted more than one design request, with an average session time of 4 minutes and 5.4 prompts per user.

Estée Lauder has also recently launched an AI innovation lab to accelerate R&D and social listening.

Morgan Hermand, Founder & CEO of Adore Me, states:
“Until now, customizable clothing was limited to simple text or image additions. With the mainstream rise of generative AI, we decided to empower everyday consumers. We’re proud to involve our customers directly in the design process of their garments. We use generative AI to create entirely unique designs while upholding our core values of inclusive sizing, sustainable production, and premium quality.”

Customized sets start at $54.95 and are produced on demand through a partnership with MAS-owned digital printer Prompt.ly. This method reduces fabric waste and uses 99% less water compared to traditional printing.

Adore Me’s Innovative Strategy
Since 2021, Adore Me has used AI to facilitate content creation. The brand believes technology must be embedded across all aspects of the business to keep pace with rapidly evolving consumer behavior.

Recently, Adore Me has also leveraged AI to enhance team collaboration and synergy. Initially disrupting the industry by offering inclusive sizing in all lingerie categories, its new investments aim to maintain this competitive edge. Last year, Adore Me launched the Sustainability Accelerator, providing startups with access to its supply chain data and manufacturing processes for case study development.

How Mars Uses Generative AI to Accelerate Product Development and Personalization

Mars uses an internally developed generative AI tool that helps the company generate up to 50 new product ideas per day.

This proprietary tool, built by the company’s One Demand Data & Analytics team and internally called Brahma, utilizes data from consumer insights studies conducted by Mars. These studies involved 80,000 consumers and 800,000 consumption moments across 11 countries.

A recent workshop in North America using Brahma led to innovative product concepts being shared at speeds that previously would have taken months to achieve, according to Gülen Bengi, Chief Growth Officer at Mars Snacking.