Coca-Cola reignites AI ad debate with new holiday campaign

Coca-Cola’s holiday trucks are back — and so is the backlash. A year after its first AI-driven Christmas ad was slammed online, the company has rolled out another one, sparking déjà vu across social media.

This week, the beverage giant launched a new holiday campaign featuring multiple ads. The first spot, a traditionally shot 30-second TV ad titled A Holiday Memory, shows a mother preparing for the holidays and indulging in both a Coke and fond memories of her festive family singing “Feliz Navidad.”

Buoyant and reminiscent of the brand’s history of rousing holiday marketing, the ad is slated to run in North America, Latin America and Asia South Pacific markets. The brand credits WPP Open X, a bespoke team dedicated to Coca-Cola, for the collaboration. 

But the spot truly commanding attention is a new AI-generated retread of the brand’s iconic 1995 Holidays Are Coming ad, created in collaboration with AI creative studio Silverside. It once again features the classic Coca-Cola trucks rolling into town.

For many, this marks a surprising double-down on AI advertising after last year’s campaign, which garnered major backlash for its rendering of humans, wildlife and architecture. This year’s ad appears to reflect at least one major learning from that experience by forgoing AI-generated humans and focusing instead on excited animals welcoming the brand’s Christmastime return. (Another “Fantastical” version of the ad was created by AI studio Secret Level.)

While the brand refers to the ad as an “optimized” implementation of AI, eagle-eyed viewers have pointed out some visual inconsistencies linked to the appearance of the trucks. In some shots, the trucks feature an extra row of wheels in the middle; in others, three wheels are clustered in the front or back of the vehicle where only two had previously appeared. 

For the second consecutive year, public response has leaned negative. The ad’s YouTube post has already gained nearly 1,900 comments, many slamming the use of AI and criticizing the brand for not using traditional animation. Industry figures such as Ashley Ruthstein, the ad veteran behind the platform Stuff About Advertising, also touched on the irony of a brand leaning on AI while using the tagline “Real Magic.” 

Two different viewpoints

While criticism from both ad professionals and everyday viewers continues to mount, metrics connected to last year’s AI campaign offers a different perspective. According to System1 research, consumers rated the ad positively for its effectiveness, brand alignment and emotional resonance. 

Coca-Cola declined to comment on the creative inconsistencies but did respond to Campaign’s inquiry about the backlash via a spokesperson: “The evolution of this kind of technology has allowed us to enhance our films and fine-tune our storytelling to create a piece of content that our customers are receptive to and that they will engage with. Last year’s film performed exceptionally well and was a success with customers which is what matters most to us.”

Pratik Thakar, Coca-Cola’s global VP and head of generative AI, echoed that sentiment in recent statements to The Hollywood Reporter. 

“Last year we decided to go all in, and it worked out well for us,” he said. “Consumer engagement was very high. Yes, some parts of the industry were not pleased we were using a 100% generative AI film, but that’s part and parcel of doing something pioneering.”

Coca-Cola's AI strategy reflects a broader tension within advertising and marketing. While the technology promises efficiency and new creative possibilities, it also raises legitimate concerns about job displacement, creative quality and the value of human artistry.

The brand told Campaign that “AI is a tool that blends human ingenuity and innovation to help us explore new possibilities and push the boundaries of storytelling,” adding that it “will use GenAI when the execution and campaign deliverables call for it.”

Thakar also acknowledged industry concerns but said the company doesn’t plan to reduce ad spend — and intends to keep experimenting with the possibilities of AI. 

“We understand that concern. But we need to keep moving forward and pushing the envelope,” Thakar said. “The genie is out of the bottle, and you’re not going to put it back in.”