Quick answer: AI explainer videos use generative AI (for visuals, avatars and voiceover) to produce explainer videos faster and more affordably than traditional animation. The main benefits are lower cost, speed (days instead of weeks), easy multilingual versions and content at scale. They work best for training, product updates, social content and fast-moving campaigns, while custom animation still wins for character-driven brand stories. At Gisteo, AI avatar videos start at $1,000 and AI cinematic videos at $3,500.
Let’s talk about AI explainer videos—an amazing innovation that combines the creativity of traditional video production with the efficiency and intelligence of artificial intelligence. But what exactly are AI explainer videos, and how can your business benefit from them?
What Are AI Explainer Videos?
AI explainer videos are short, engaging, and informative videos created or enhanced using artificial intelligence. Just as with traditional explainer videos, these videos aim to simplify complex ideas, introduce products or services, or tell a brand’s story in a way that is easy to understand and visually compelling.
Unlike traditional explainer videos, AI explainer videos leverage machine learning, natural language processing, and generative AI to streamline the production process. This can include:
Scriptwriting: AI tools can draft compelling scripts based on your input, cutting down the time it takes to brainstorm and write.
Voiceovers: Synthetic voice technology can create high-quality voiceovers in multiple languages and accents.
Animation and Design: AI-powered platforms can automatically generate animations, infographics, and visuals tailored to your script.

10 Benefits of AI Explainer Videos for Business
- Lower cost. AI removes much of the manual animation and shooting, so a professional video costs a fraction of traditional production.
- Faster turnaround. What used to take weeks can take days, which matters for launches and time-sensitive campaigns.
- Multilingual in minutes. The same script can be produced in many languages without re-recording or reshooting.
- Personalization. Swap names, industries or offers to create tailored versions for different audiences.
- Scale. Produce a series of videos, such as training modules, product updates and social cuts, without a proportional jump in budget.
- Consistent branding. The same presenter, voice and style across every video.
- Easy updates. Change a line or a price without reshooting the whole video.
- Better customer education. Clear, repeatable explanations for onboarding and support.
- Accessibility. Captions, voice options and languages help you reach more people.
- Versatility. The same approach works for marketing, sales enablement, training and internal communications.
Wondering about the limits? Read our honest take: Is AI video good enough for professional use?
Use Cases for AI Explainer Videos
Here are some practical ways businesses are using AI explainers to drive growth:
Product Launches: Showcase your product’s key features and benefits with engaging visuals and concise messaging.
Onboarding and Training: Simplify employee onboarding or customer training with AI-generated tutorials.
Social Media Marketing: Create eye-catching, shareable content for platforms like Instagram, LinkedIn, or TikTok.
Sales Enablement: Equip your sales team with persuasive videos that address common customer pain points and objections.

Choosing Between Traditional Custom Explainer Videos vs. AI Videos
Selecting between custom explainer videos and AI-generated ones depends largely on your project’s specific needs, budget, and timeline. Let’s break it down.
Traditional Custom Explainer Videos
Advantages:
- High Quality and Creativity: Traditional explainer videos are crafted by skilled professionals like those at Gisteo, resulting in high-quality, creative, and engaging content that effectively communicates complex ideas.
- Customization and Flexibility: These videos offer extensive customization, ensuring that every aspect aligns with your brand’s vision and goals.
Considerations:
- Longer Production Time: The intricate process can take weeks, which may not be suitable for time-sensitive projects.
- Higher Costs: The involvement of multiple professionals and resources can make traditional explainer videos more expensive, which might be a constraint for businesses with limited budgets.
AI Explainer Videos
Advantages:
- Cost-Effectiveness: AI-generated explainer videos significantly lower production costs, making high-quality video production accessible to a broader range of companies, including startups and small businesses.
- Speed and Efficiency: AI tools allow for much faster video production than traditional methods, enabling businesses to respond quickly to market trends or launch new products without significant delays.
- Ease of Use: Many AI explainer tools are user-friendly if going the DIY route, allowing a wider range of users to create their own explainer videos.
Considerations:
- Limited Creativity: AI-generated content can sometimes become predictable, relying on established templates and patterns, which may lead to a lack of originality in visuals.
- Dependence on Technology: Relying on AI tools for video production introduces the risk of technical glitches or malfunctions, which can disrupt production and lead to subpar output.
Gisteo’s AI Video Production Services
Gisteo offers AI video production services that combine the best of both worlds—leveraging advanced AI technology to produce high-quality explainer videos quickly and cost-effectively, while also incorporating human creativity to ensure each video is engaging and tailored to your brand’s unique needs.
What Gisteo Brings To the Table
- Compelling Scripts & Concepts: Gisteo’s expert team, with experience producing videos since 2011, collaborates with clients to craft messages and concepts that resonate with their audience.
- AI-Powered Video Production: Utilizing AI, Gisteo creates seamless videos featuring realistic spokespersons or narrators, all tailored to the client’s brand.
- Versatile Use Cases: These videos are ideal for training, employee education, customer onboarding, or delivering key messages with clarity and impact. Our AI videos make it easier than ever to leverage the power of visual learning.
How Much Do AI Explainer Videos Cost?
DIY AI video tools cost roughly $0–$200 per month, but you write, produce and polish the video yourself. A professionally produced AI explainer from Gisteo starts at $1,000 for an AI avatar video (first 30 seconds, then $500 per additional 30 seconds) and $3,500 for an AI cinematic video (60–90 seconds). Custom animated explainers start at $3,500. See explainer video pricing and our AI video production services.
AI Explainer Video FAQ
Are AI explainer videos cheaper than traditional animation?
Usually, yes. AI avatar and AI cinematic videos cost less and are faster to produce. Custom animation costs more but gives you full creative control over characters and illustration.
Will viewers know a video was made with AI?
Sometimes, and increasingly that’s fine. Audiences are comfortable with AI presenters for demos, training and updates. Professional scripting and post-production keep it polished.
Should I use a DIY AI video tool or a production service?
Use a DIY tool for high-volume internal content where speed matters most. Use a production service for customer-facing videos that represent your brand, where the script and polish make the difference.
What are AI explainer videos best for?
Product explainers, onboarding and training, sales enablement, social media content and multilingual campaigns.
Conclusion
Both traditional custom explainer videos and AI-generated ones have their place in a marketing strategy. Traditional videos offer high-quality and customization, making them ideal for projects where budget and time are less constrained. On the other hand, AI explainer videos provide a cost-effective and efficient alternative, perfect for businesses looking to produce engaging content quickly and affordably.
By understanding the strengths and limitations of each approach, you can make informed decisions that align with your business objectives and resources. Whether you need a custom production or AI explainer video production, Gisteo has you covered. Contact us to further discuss your needs.