In a few years, artificial intelligence has moved from experimental use to routine application in advertising: it can now generate not only images and short texts but entire ad films, backgrounds, on-screen characters, voices and music. The economic significance lies in shortening or partially replacing workflows that previously required substantial human and technical resources.
How much can be saved?
Áron Bíró, Chief Operating Officer at Umbrella Collective, says AI is no longer just another tool for filmmakers but can reshape creative and production logic. Using their AI-made film for Visit Budapest as an example, Bíró pointed out that the main benefit was not only cheaper execution of specific tasks but the ability to structure the production according to a completely different logic. He estimates that, depending on the project, production savings of roughly 50–70 percent may be achievable for productions of similar complexity.
SoundCam Productions CEO Örs Józsa warned that there is no single category of “AI ad”: simple prompt-built videos and professional productions that blend live footage with generated elements differ greatly. For simpler videos, costs can fall dramatically — in some cases to a tenth of a comparable traditional production — and creation can take days or, in extreme cases, hours. For high-end commercials that mix live footage with AI, however, new stages such as building 3D environments to plan camera moves and actor placements may add significant professional work.
Small AI teams vs. large crews
Bíró described a production where the visual work was completed by six AI artists in about two weeks; with traditional techniques, the same visuals could have required a 30–50 person crew plus longer prep and postproduction. He stresses this doesn’t simply mean replacing a few jobs: the entire production structure can become smaller and more flexible. Tasks that are easy to automate or digitally substitute — visual effects, background generation, retouching, storyboarding and previsualization — are most likely to shrink the headcount needed per project.
Which jobs are at risk?
Józsa is more blunt about labor-market effects: in some cases the shoot itself may disappear, taking with it much of the traditional crew — camera operators, actors, extras, production managers and assistants. In a fully AI-driven pipeline, one specialist could perform tasks previously handled by separate roles (camera, lighting, editing). The change extends to graphics (less frequent need), automated multicam editing that recognizes speakers, AI tools for clip selection and video analysis, and even systems that claim to predict a concept’s effectiveness from patterns learned from viewers’ brainwaves. He also highlighted voiceover, music and sound design: AI can transform a video into another language with plausible lip-sync, potentially reducing demand for composers and localisation specialists.
New skills and retraining
Józsa does not believe the industry will be simply replaced. Film and advertising professionals who upskill and learn AI frameworks, become good at prompting and continuously follow new tools may be in strong positions. He emphasized that advanced models have real costs (token usage), so AI production is not necessarily free or cheap by default.
Will agencies survive in current form?
Pőcze Balázs, a board member of the Hungarian Advertising Association (Magyar Reklámszövetség, MRSZ) and representative of Mito Creative Zrt., expects the change to reach most professional roles. The impact will vary by company: businesses producing many image and video variants will see more automation, while others may compete on high-quality human work. Pőcze warns that those who do not continually assess how new software can make their work faster and more productive face clear risks.
By contrast, Józsa predicts that traditional agencies in their current form will disappear, arguing that campaign management and reach-tracking are increasingly automated and that even small businesses can generate professional spots themselves. Pőcze offers a different scenario: human factors such as surprise, taste, consultancy and decision-making will remain important, and AI may simultaneously increase productivity and work quality — possibly raising agencies’ added value and creating new business models.
Ad spend and market forecasts
The IAB UK forecasts that by 2030 some 32 percent of British digital ad spend — about £18 billion — could be AI-driven. Among IAB UK members, 58 percent are testing AI agents, 16 percent use them at more advanced levels, and 63 percent expect AI to significantly accelerate and reshape creative production within a year. Still, only 4 percent have reorganized their operations fully around AI, and questions remain about auditability, data security and accountability for autonomous systems.
Pricing, client expectations and transparency
Bíró says clients already ask why they should pay the same if an idea can be realized faster and more cheaply, prompting price pressure in some areas. Long-term success, he argues, will depend on who creates better films and brand experiences with the technology rather than who simply produces the cheapest AI-driven videos. Szabó Béla (Magyar Telekom, MRSZ) cautions that while AI can deliver efficiency, it also creates new expectations and costs for marketing and communications teams, so cost structures will shift: savings on one side may appear as new expenses on the other.
Consumer perception and transparency are also complex. Research cited by the MRSZ shows that most consumers do not recognize AI-made ads; if they do or are informed, perceived authenticity and brand trust can decline moderately. The so‑called transparency paradox is notable: 70–90 percent of consumers want AI use disclosed, yet labeling AI use can itself reduce trust in the content.
Viewer reactions and case studies
The Coca‑Cola Christmas campaigns of 2024 and 2025 — produced with AI support — received harsh commentary online (labels like “soulless” and calls for boycotts), but System1 test panels awarded both ads the maximum 5.9 score. The MRSZ also noted a Volvo commercial by Hungarian creator Gaal László (working in Hong Kong), which System1 ranked among its best car ads. These examples show a gap between vocal professional or social-media criticism and average viewer responses.
Józsa argues the real problem is poor-quality AI ads or AI use that doesn’t fit a brand: a weak concept remains weak even with advanced technology, while a visually strong, coherent film with a good idea and emotional impact will generally overcome concerns about the method of production.
HoloChron: organic reach without ad spend
SoundCam’s HoloChron demo video — showing an AI assistant welcoming a patient in a clinic — generated 351,000 views on TikTok and 161,000 on Facebook (over half a million organic views) without paid promotion. The clip earned more than 15,000 likes, 419 comments and nearly 300 shares; average view duration on Facebook was 37 seconds, and over 33,000 viewers watched for at least one minute. Comments tended to compare the AI scenario to current human service rather than debate AI per se.
What should remain human?
Bíró stresses that traditional shoots will not vanish: campaigns relying on emotion, character-driven storytelling, known performers, demonstrations of real product functionality or documentary approaches often require real people, locations and objects for credibility. Józsa admits he sees fewer absolute limits from a technological point of view, but notes people still want to see other people — a podcast or influencer-driven format, for example, currently benefits from real human presence and imperfections.
Conclusion
Industry interviewees agree that AI can make ad production cheaper and reduce the number of people needed on some projects, but it also rewrites which skills are valued, how agencies make money and what is considered true creative achievement. Large crews and costly shoots will not disappear entirely, but they will not be necessary in every case. Above all, all three experts converge on one point: technology alone does not make a good advertisement — the creative idea and quality execution remain decisive. Umbrella Collective has also published a free, user-friendly AI primer to help the public recognize manipulated videos and images and become more aware of AI-generated content.
