Will AI Explainer Videos Take Over in 2025?

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Picture of Stephen Conley
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).

Artificial Intelligence (AI) is revolutionizing explainer video production, making it more efficient, cost-effective, and accessible. In 2025 and beyond AI is expected to significantly transform various stages of explainer video creation, from scripting to post-production.

At Gisteo, with over 12 years of experience in the explainer video production space, we’re witnessing firsthand how AI is reshaping the landscape and we’ve gotten into the game. Let’s explore how AI is influencing explainer videos and why human creativity remains indispensable.

The Current State of Video Marketing in 2025

Recent industry statistics highlight the growing importance of video content:

These figures underscore the central role of video in modern marketing strategies.

AI’s Impact on Explainer Video Production

AI is revolutionizing explainer video production in several key areas:

  • Script Generation and Optimization:

    • Natural Language Processing (NLP) enhances scripts for emotional resonance.
    • Automated keyword optimization improves searchability.
    • Multi-language adaptation broadens audience reach.
  • Visual Element Creation:

    • Deep learning algorithms ensure style consistency.
    • Real-time rendering accelerates production timelines.
    • Automated character animation and dynamic background generation add visual appeal.
  • Voice Synthesis and Audio Processing:

    • Advanced Text-to-Speech (TTS) technology offers emotional voice modulation.
    • Multiple accent options cater to diverse audiences.
    • Background music optimization enhances the viewing experience.

These advancements streamline the production process, making it more efficient and cost-effective.

Cost and Performance Metrics

Comparing traditional and AI-enhanced production methods:

  • Traditional Production:

    • Average cost: $3,000 per 60-second video.
    • Revision costs: $500–$1,000 per round.
    • Timeline: 4-5 weeks.
    • Additional language versions: $1,000+ each.
  • AI Video Production:

    • Gisteo’s introductory rate: $150 per 60-second video.
    • Unlimited revisions included.
    • Timeline: 24–72 hours.
    • Multiple languages at minimal cost.

According to Grand View Research, performance metrics for AI-generated videos include a 30% improvement in conversion rates, a 45% increase in viewer retention, a 27% boost in click-through rates, and a 38% rise in social sharing.

Future Market Analysis and Predictions

  • Market Growth Projections (2025–2030):

    • Global AI video market: Expected to reach $42.29 billion by 2030.
    • Annual growth rate: 35.3% CAGR.
    • Explainer video segment: 35% of total market.
    • Enterprise adoption rate: 85% by 2030.
  • Emerging Technologies:

    • Quantum computing integration.
    • Advanced neural networks.
    • Real-time personalization.
    • Blockchain verification.
  • Industry Transformations:

    • Hybrid production becoming standard.
    • Personalization at scale.
    • Interactive video evolution.
    • Multi-platform optimization.

AI-Driven Scriptwriting and Content Generation

AI tools are streamlining the scriptwriting process by analyzing existing content and generating engaging narratives. This automation allows businesses to produce explainer videos more quickly and with greater consistency. For instance, AI can transform lengthy documents or data into concise, compelling scripts, saving time and ensuring clarity.

Personalized and Interactive Content

AI enables the creation of personalized explainer videos tailored to specific audience segments. By analyzing viewer data, AI can adjust visuals, text, and voiceovers to resonate with different demographics, enhancing engagement and conversion rates.

Additionally, AI-powered interactive elements, such as clickable graphics and decision trees, can be incorporated into videos, allowing viewers to engage directly with the content and explore specific features at their own pace.

AI-Generated Voiceovers and Avatars

Advancements in AI have led to the development of realistic voiceovers and avatars, reducing the need for human voice actors and presenters. Platforms like Synthesia allow users to create AI-generated versions of themselves or select from a range of avatars, enabling the production of videos without traditional filming equipment. This technology supports over 140 languages, facilitating the creation of multilingual content.

Synthesia, a London-based AI start-up, has achieved a valuation of $2.1 billion following a $180 million funding round led by New Enterprise Associates, with participation from existing investors GV and MMC Ventures, and new backers including World Innovation Lab and Atlassian Ventures.

Founded in 2017, Synthesia specializes in creating lifelike human faces and speech using AI, eliminating the need for cameras, actors, or film studios. The company offers a platform that enables users to generate AI-powered videos featuring digital avatars, which can be customized to represent individuals or selected from a range of pre-generated presenters. The platform supports over 60 languages and multiple gender options, facilitating the creation of multilingual content. Synthesia’s technology has been utilized by corporations for communication, training, and advertising purposes. The recent funding will support Synthesia’s expansion into markets such as Japan, Australia, Europe, and North America, as well as further product development and talent growth. Co-founder and CEO Victor Riparbelli stated that the investment will aid in developing new interactive and personalized AI-powered video experiences.

Enhanced Post-Production with AI

In post-production, AI is automating tasks such as video editing, color correction, and sound design. AI-powered editing tools can analyze footage to identify key moments, streamline workflows, and enhance narratives, significantly reducing production time and costs. For example, AI can automatically trim, resize, and enhance video quality, ensuring a polished final product.

Adobe’s AI Innovations

Adobe has introduced the Firefly Video Model, a generative AI tool that allows users to create and edit videos using text prompts and photo-to-video conversions. This tool is available in two pricing tiers: Firefly Standard at $9.99 per month and Firefly Pro at $29.99 per month. Adobe emphasizes that its AI models are trained on licensed content, ensuring that generated videos are safe for commercial use. The company aims to provide new tiers that offer significant value to customers, integrating AI capabilities into its existing products to enhance user experience.

Ethical Considerations and Future Prospects

As AI continues to advance, ethical considerations arise, particularly concerning deepfakes and misinformation. It’s crucial to develop strategies to address these issues, ensuring that AI-generated content is used responsibly. Looking ahead, the future of explainer video production with AI holds immense potential, with advancements in AI-enhanced filmmaking techniques and the possibility of AI handling the entire process, from start to finish, without human involvement.

Conclusion

In summary, AI is set to transform explainer video production by automating routine tasks, enhancing creative possibilities, and making high-quality video creation more accessible. As these technologies evolve, they will continue to shape the future of content creation, offering new opportunities and challenges for the industry.

Gisteo has taken a leap into the AI video production space. For more information about our AI avatar production services, please click here.

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