Introduction
The world of explainer videos is changing—fast. And at the heart of this shift is artificial intelligence.
From AI voiceovers to avatars, visuals, and even full video editing, AI is transforming the way explainer videos are created. It’s faster, more affordable, and opens up creative options that were hard to imagine just a few years ago. But more than that, it’s fundamentally altering the relationship between creators and their audiences, enabling a level of personalization and responsiveness that traditional video production simply couldn’t match.
The numbers tell the story. Video content now accounts for over 82% of all internet traffic, and businesses using video marketing see 49% faster revenue growth than those that don’t. Meanwhile, the AI video generation market is projected to reach $1.9 billion by 2030. This isn’t just a trend—it’s a seismic shift in how brands communicate.
At Gisteo, we’ve embraced this shift wholeheartedly. We’re actively working on two distinct types of explainer video AI formats that let brands tell their stories in fresh, compelling ways—without the long timelines or high production costs that once made professional video content accessible only to companies with deep pockets.
What Is an AI-Powered Explainer Video?
Simply put, an AI-powered explainer video uses artificial intelligence at different stages of production. But the definition goes deeper than just using AI tools—it’s about leveraging machine learning to enhance creativity, streamline workflows, and deliver results that would have required armies of specialists just five years ago.
That might include:
- AI script generation to help develop messaging quickly, analyzing your brand voice and target audience to craft compelling narratives
- AI voiceovers with realistic human tone that can be customized for different demographics, languages, and emotional contexts
- AI avatars acting as your on-screen presenter, complete with natural gestures, facial expressions, and lip-sync accuracy
- AI-generated visuals from tools like Midjourney, OpenAI’s Sora, or Google’s Veo that can create everything from photorealistic scenes to abstract concepts
- AI video editing that assembles scenes, music, and graphics with an understanding of pacing, emotional beats, and visual storytelling principles
Some videos use just one of these elements strategically. Others are built almost entirely with AI—from initial concept and script development to final cut and distribution optimization. The key is knowing which approach serves your specific goals and audience expectations.
The Two Formats We’re Building at Gisteo
We’re currently producing two main types of AI-powered explainer content, each designed to solve different communication challenges:
1. AI Avatar Videos
These feature realistic, on-screen virtual presenters (avatars) who deliver your message directly to the viewer. But these aren’t the robotic, uncanny-valley avatars of yesteryear. Today’s AI avatars can convey genuine emotion, maintain eye contact, and adapt their delivery style to match your brand’s personality.
They’re particularly effective for talking-head explainers, FAQ responses, internal communications, customer onboarding sequences, and personalized video messages. Think of them as your on-demand spokesperson—available 24/7 in any language, never having a bad hair day, and capable of delivering consistent messaging across thousands of interactions. Here’s a recent example we produced as part of a series for Bill.com:
The strategic advantage here isn’t just convenience. AI avatars allow for unprecedented personalization at scale. Imagine sending a “personal” video message to each of your top 1,000 prospects, with each avatar addressing the recipient by name and referencing their specific industry challenges. That’s the kind of targeted engagement that converts browsers into buyers. Check out this influencer-style AI avatar video we produced for to promote Instacake:
2. AI Montage Videos
This format represents the artistic frontier of AI video production. We’re using cutting-edge tools like Veo, Midjourney, RunwayML, and others to create cinematic sequences, animated visuals, dynamic text overlays, and atmospheric effects that would have required Hollywood-level budgets in the traditional production world. Check out this video we produced 100% with AI, from start to finish:
These videos stitch together the best of what AI can do today—seamlessly blending photorealistic scenes with stylized animation, creating impossible camera movements, and generating visuals that exist nowhere in the real world but feel completely authentic. It’s part documentary, part movie trailer, part digital art installation.
AI montage videos are ideal when you want to wow people and deliver a punchy narrative without the traditional production overhead. They’re perfect for product launches, brand storytelling, concept explanations, and any situation where you need to capture attention in a crowded marketplace. The visual impact alone often generates social sharing and extends your reach organically.
Why Explainer Video AI Is a Game-Changer
Here’s why more brands are leaning into AI-powered production, and why this shift represents more than just a cost-cutting measure:
Speed That Enables Agility
AI tools can dramatically cut down production time—from weeks to days, sometimes even hours. But speed isn’t just about efficiency; it’s about agility. In today’s market, the ability to respond quickly to trends, address customer concerns in real-time, or capitalize on breaking news can be the difference between leading the conversation and playing catch-up.
Consider this: a traditional explainer video might take 4-6 weeks from concept to completion. With AI, you can have a polished video ready in 48 hours. That means you can test concepts, iterate based on feedback, and optimize performance while your competitors are still waiting for their first draft.
Affordability That Democratizes Quality
No need for full film crews, expensive equipment rentals, or big animation teams. AI keeps things lean without sacrificing quality, but more importantly, it democratizes access to professional-grade video content. Small businesses can now compete with enterprise companies on visual storytelling grounds.
The cost reduction isn’t just about the bottom line—it’s about creative freedom. When video production becomes affordable, you can afford to experiment, take creative risks, and explore messaging approaches that might not pan out. That experimentation often leads to breakthrough content that wouldn’t have been possible under traditional budget constraints.
Scalability That Transforms Distribution
AI makes it easier to produce multiple versions of a video—different languages, formats, messages, or cultural adaptations—for different audiences. But scalability goes beyond simple variations. AI enables true omnichannel video strategies where the same core message can be automatically optimized for different platforms, audience segments, and viewing contexts.
Imagine creating one master explainer video and having AI automatically generate versions optimized for LinkedIn (professional tone, industry-specific examples), Instagram (visual-first, shorter attention spans), and email campaigns (personalized hooks, clear calls-to-action). That level of scalability transforms how brands think about video distribution.
Creative Freedom That Pushes Boundaries
AI unlocks visuals and styles that might have been too complex, expensive, or simply impossible in a traditional workflow. Want to show your software’s impact by visualizing data flowing through a cityscape made of code? AI can create that. Need to demonstrate a complex process by taking viewers inside a molecule? AI makes it possible.
This creative freedom isn’t just about spectacular visuals—it’s about finding new ways to make complex ideas accessible, memorable, and engaging. When you’re not constrained by physical limitations or budget realities, you can focus purely on what will best serve your audience’s understanding and emotional connection to your message.
The Strategic Considerations: When to Use (and Not Use) AI for Explainer Videos
AI isn’t always the answer, and smart marketers understand the nuances. It shines brightest for quick-turn projects, internal communications, MVP demonstrations, A/B testing scenarios, and content that needs frequent updates or iterations.
AI excels when you need to explain processes, demonstrate software functionality, present data-driven insights, or create educational content. It’s particularly powerful for B2B scenarios where information transfer is more important than emotional storytelling, and for companies that need to maintain consistent messaging across multiple touchpoints.
But for deeply emotional brand stories, highly nuanced character animation, culturally sensitive content, or situations where authentic human connection is paramount, traditional animation or live action might still be the better choice. The key is understanding that each approach has its strengths and knowing how to match the tool to the task.
That’s why we treat AI as an extension of our creative toolkit—not a total replacement. The most effective video strategies often combine AI efficiency with human creativity, using artificial intelligence to handle the technical heavy lifting while human expertise guides the strategic and emotional elements.
The Future Is Already Here
The trajectory is clear: AI-powered video production will become the standard, not the exception. Early adopters are already seeing competitive advantages in terms of content velocity, testing capabilities, and audience engagement. The question isn’t whether AI will transform video marketing—it’s whether your brand will lead that transformation or be forced to catch up.
Want to Explore the AI Option?
If you’re curious about explainer video AI, we’d love to show you what’s possible. The technology has matured to the point where AI-generated videos can genuinely compete with traditional production on quality while dramatically exceeding it on speed, cost, and scalability.
Whether you’re considering a sleek avatar video that can serve as your always-available brand spokesperson or a high-impact AI montage that turns complex concepts into visual experiences, we’ll help you determine the right approach for your message, audience, and business objectives.
The consultation process itself is revealing. We’ll analyze your current video strategy, identify gaps where AI could provide immediate value, and map out a production approach that aligns with your broader marketing goals. Sometimes the answer is full AI production. Sometimes it’s a hybrid approach. And sometimes, traditional methods still serve you best.
Ready to ride the next wave of video marketing?
Let’s talk. We’ll help you tell your story—with or without AI—in a way that cuts through the noise, captures attention, and drives the business results you’re after. The future of video marketing is here, and it’s more accessible than you might think.
Schedule your free consultation today!
