AI Commercials: How They’re Made, What They Can Do, and Who Makes Them

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Stephen Conley
Stephen is Gisteo's Founder & Creative Director. After a long career in advertising, Stephen launched Gisteo in 2011 and the rest is history. He has an MBA in International Business from Thunderbird and a B.A. in Psychology from the University of Colorado at Boulder, where he did indeed inhale (in moderation).

Quick answerAn AI commercial is an ad whose scenes are generated with AI video tools instead of being filmed with a crew, actors and locations. The best ones are still made by people: a human writes the concept and script and plans every shot, then the team uses AI to generate the footage, and edits, scores and polishes it like any other commercial. At Gisteo, AI commercials start at $1,000 for a 15-second spot, $1,750 for 30 seconds and $3,000 for a 60-second cinematic film. One of ours is streaming on Netflix’s ad platform.

AI commercials went from novelty to normal in about two years. Brands use them to launch faster, test more ideas and run campaigns that would never have fit a traditional production budget. But “AI commercial” covers everything from a one-click tool output to a carefully directed spot, and the difference shows on screen. This guide covers what AI commercials are, how they’re made, what they cost, what they’re good (and bad) at, and how to choose who makes yours.

What counts as an AI commercial?

Three kinds of video get called “AI commercials”:

  • Cinematic AI commercials: full scenes, characters, locations and camera moves generated by AI, then directed and edited by a creative team. This is what most people picture, and what this article focuses on.
  • AI-assisted commercials: traditionally filmed or animated ads where AI handles part of the work, such as backgrounds, cleanup, voice or versioning. If you’re weighing that route, see when to combine live action, animation and AI.
  • Presenter videos: a digital presenter speaking to camera. Useful for training and explainers, but rarely what a brand means by a commercial. Here’s how they compare: AI avatar vs. animated explainer.

Watch: an AI commercial that’s streaming on Netflix

We made this 30-second spot for Luxury Exotic Rentals, an Atlanta luxury car rental company, with no actors, no cameras and no six-figure budget. It’s running on Netflix’s advertising platform.

AI commercials big brands have already run

AI commercials aren’t just for small brands testing an idea:

  • Kalshi aired a fully AI-generated spot during the 2025 NBA Finals, with roughly $2,000 in AI generation costs.
  • Toys”R”Us premiered an AI-generated brand film at Cannes Lions.
  • H&M built AI digital twins of 30 real models, with their consent, to produce campaign content at global scale.

For the full breakdown of each campaign and what it teaches, see our AI commercial examples.

How AI commercials are made, step by step

  1. Brief and concept. What’s the one thing the viewer should remember, and what should they do next? The concept plays to AI’s strengths: striking visuals, mood and motion, rather than precise product close-ups.
  2. Script. A human writes it. However good the tools get, the script is what makes an ad work, and it’s where most AI slop goes wrong. (To see that slop in action, try Slopboard, our free generator of uniquely generic AI explainers.)
  3. Storyboard. Every shot is planned and approved before anything is generated. That keeps the look consistent and the budget predictable. It’s the AI version of an animatic.
  4. Generation. The team generates each shot with AI video tools such as Veo, Runway and Seedance, often dozens of takes per shot, and keeps only the ones that hold up: consistent characters, believable motion, no glitches.
  5. Edit. Shots are cut together for pacing, with brand graphics, titles and the call to action.
  6. Sound. Voiceover (AI or a professional voice actor), music and sound design. Sound does more for “does this feel real?” than almost anything else.
  7. Versions. Cutdowns (a 30-second spot plus a 15-second version), aspect ratios for each platform (16:9, 9:16, 1:1, 4:5), other languages and alternate hooks for testing.

At Gisteo, a 15-second spot takes 5–7 business days, a 30-second commercial 7–10 and a 60-second cinematic film about 2–3 weeks. For what each option includes and costs, see how much an AI commercial costs.

What AI commercials do well, and where they struggle

Great for Still hard
Cinematic scenes and locations you could never afford to shoot Exact product close-ups and pixel-perfect packaging (can AI show your actual product?)
Mood, emotion and storytelling in 15–60 seconds Precise on-screen text and complex UI demos
Testing several hooks and angles cheaply Long dialogue scenes with perfect lip sync
Fast launches (days, not months) Real people, unless you create a Digital Twin with their consent
Versions in many formats and languages Approval processes that need many rounds of new concepts

When the job is showing exactly how a product works, custom animation is still the better tool. Many brands use both: animation for the explainer, AI for the ads. If you want a fully animated spot instead, see our animated commercials.

How much do AI commercials cost?

Gisteo publishes its AI commercial prices:

Option Length Price Delivery
Social Spot Up to 15 seconds $1,000 5–7 business days
Commercial Up to 30 seconds, with a 15-second cutdown $1,750 7–10 business days
Cinematic Film Up to 60 seconds (+$500 per extra 30 seconds) $3,000 2–3 weeks
Launch Pack One 30-second hero spot + three 15-second variations $3,950 —
AI Creative Plans 4 or 8 spots a month From $2,950/month Ongoing

For comparison, most professionally produced 30-second commercials cost between $5,000 and $100,000 or more to make, and national broadcast work costs more still, according to The Influence Agency’s 2026 pricing guide. That’s production only. Media spend is a separate budget line either way. Full details are on our AI video production services page, and for budget planning see what to allocate for video in 2027.

How would AI look for your brand?

Ask for a free 15-second AI sample. No credit card, no sales call.

Get a free sample

Who makes AI commercials?

Option Typical cost You get Best for
DIY with AI video tools Tool subscription plus your time Full control, but you write, prompt, edit and polish everything Teams with in-house creative skills and time to learn
Freelancers Varies widely Lower cost; quality and reliability depend on the person One-off, low-stakes spots
AI commercial production company / AI ad agency From about $1,000 per spot Concept, script, production, sound and versions, with a team accountable for quality Brands that need ads that perform, on a predictable timeline
Traditional ad agency adding AI Often five or six figures Big-agency strategy and process Large brands with large budgets

Gisteo is an AI commercial production company: human strategy and scripting, AI production, and 15+ years of storytelling behind every spot. For named companies, see our roundup of top AI video ad companies. For creator-style ads, see AI UGC video ads.

How to choose an AI commercial production company

  • Who writes the script? Look for human concept and scriptwriting, not just prompting.
  • Can you see real work? Ask for finished commercials, not demo reels of single shots. Browse ours on the AI video examples page.
  • Is pricing published? You should know the cost of a 15-, 30- and 60-second spot before the first call.
  • What’s included? Revisions, cutdowns, formats, voice, music and sound design.
  • Who owns the finished ad? You should own it outright.
  • How do they handle disclosure and likeness? They should follow each platform’s AI-content rules and never use a real person’s likeness without written consent.
  • Do they have results? Our AI campaign for 62or70.com reached a 68% YouTube view rate and a 16% Facebook click-through rate.

For a longer checklist, see our buyer’s guide to AI video production services.

Rights, disclosure and brand safety

Settle three things before an AI commercial goes live:

  • Ownership: get it in writing that you own the finished video. Gisteo clients own every video outright.
  • Disclosure: platforms such as YouTube, Meta and TikTok have rules or labels for realistic AI-generated content, and they change often. Your production partner should know the current rules for each channel you’ll run on. Our guide to AI video copyright and disclosure lists the main rules.
  • Likeness: putting a real person (your founder, a spokesperson) in an AI commercial requires their written consent. A Digital Twin is built once with that consent ($2,000, one time) and reused in future videos. Our founder replaced Gisteo’s live-action spokesperson with his own AI clone.

For larger teams with formal review processes, see how enterprise marketing teams use AI video safely. In regulated categories, see these health and medical commercial examples.

Where AI commercials run

Anywhere a traditional commercial runs: YouTube, Meta, TikTok and LinkedIn; connected TV and streaming; and broadcast or cable TV, as long as the spot meets the channel’s technical specs and ad standards. Our guide to AI TV commercials covers specs, clearance and costs for broadcast and streaming. For campaigns built on testing several versions, see how to plan an AI video ad campaign. For a story told over several short episodes, see our guide to branded micro dramas. For short-form ads built for paid social, see our guide to AI video ads.

Frequently asked questions

What is an AI commercial?

An AI commercial is an ad whose scenes are generated with AI video tools rather than filmed. The strongest ones are still written, directed, edited and sound-designed by people.

How much does an AI commercial cost?

At Gisteo, AI commercials start at $1,000 for a 15-second spot, $1,750 for 30 seconds and $3,000 for a 60-second cinematic film. Most professionally produced 30-second commercials made the traditional way cost $5,000 to $100,000 or more.

How long does it take to make an AI commercial?

About 5–7 business days for a 15-second spot, 7–10 business days for a 30-second commercial and 2–3 weeks for a 60-second film.

Can AI commercials run on TV?

Yes. AI commercials can run on streaming, connected TV and broadcast as long as they meet each channel’s technical specs and ad standards. One of Gisteo’s AI commercials is streaming on Netflix’s ad platform, and Kalshi’s AI spot aired during the 2025 NBA Finals.

Are AI commercials as effective as traditional ones?

They can be. Effectiveness depends on the idea, script and targeting more than on how the footage was made. Gisteo’s AI campaign for 62or70.com reached a 68% YouTube view rate and a 16% Facebook click-through rate.

Can I try an AI commercial before I buy?

Yes. Gisteo will make a free AI video of 15 seconds or less for your brand, with no credit card or sales call. Claim your free 15-second AI video.

Get an AI commercial made for your brand

The fastest way to judge AI commercials is to see one for your own business. Claim a free 15-second AI video, browse more AI video examples, or book a free 30-minute consultation.

Start with a free brainstorm

Talk through your idea with us on a free 30-minute call or in a free script workshop. Curious about AI? Ask for a free 15-second sample. No obligation.

Stephen Conley

Written by Stephen Conley

Founder & Creative Director, Gisteo

Stephen has spent 30+ years in advertising, branding and video, including 15 years at agencies like Young & Rubicam, JWT and DDB, before launching Gisteo in 2011. He still works hands-on on every project and leads the studio’s custom animation and AI video work. More about Stephen

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Frame from Gisteo AI commercial campaign for 62or70.com