1. Meta’s “AI Granny” Ads Gone Wrong
What happened:
Several advertisers using Meta’s Advantage+ AI ad tools found that the platform had automatically generated and served AI imagery instead of the real creative they expected. The most notorious example was an ad for apparel brand True Classic: a top‑performing campaign featuring a male model was replaced by an AI‑generated image of a cheerful grandma, clearly off‑brand for the target audience. (LinkedIn)
Backlash & industry reaction:
- Marketers were perplexed and frustrated, saying AI made bizarre swaps — even when settings to prevent AI imagery were turned off. (LinkedIn)
- Many said this increased manual workload (having to monitor and undo unwanted AI selections) rather than saving time.
- Experts warned that letting AI “invent stories from scratch doesn’t yield true creative innovation, it yields approximations of human emotion that can misfire.” (Business Insider)
Why it matters:
This highlighted a larger issue with opaque AI automation — platforms optimizing without clear human control can damage brand messaging and waste ad spend.
2. Coca‑Cola’s AI Holiday Truck Ads — Twice Controversial
What happened:
Coca‑Cola leaned into AI for its 2025 holiday campaign, producing multiple AI‑generated “Holidays are Coming” ads. Viewers and creative professionals noticed visual inconsistencies — such as trucks that seemed to change shape or disappear mid‑ad — and imagery that many perceived as oddly lifeless or uncanny. (eWeek)
Public and creative community reaction:
- Many social media commenters criticized the ads as “soulless”, ”creepy”, or lacking the emotional magic of Coke’s traditional holiday spots. (euronews)
- Some backlash centered on AI’s role in replacing artists, with observers calling the work “AI slop” and questioning the aesthetic and ethical trade‑offs. (eWeek)
- Reddit discussions often mocked the ad quality and wondered why the brand didn’t stick with classic, human‑driven content. (Reddit)
Defense from Coca‑Cola:
Company execs framed AI as the future of storytelling and innovation, arguing that blending AI and human creativity allows for rapid production and scalability. Critics weren’t convinced — and the ads became a case study in the risks of prioritizing technology over emotional resonance. (euronews)
3. McDonald’s Netherlands’ “Most Terrible” AI Holiday Ad
What happened:
McDonald’s Netherlands released an AI‑generated holiday ad meant as a satirical montage of Christmas mishaps — but many viewers found it tone‑deaf, cynical, and just plain creepy. The short spot featured a chaotic sequence of cooking disasters, broken bones, and a sleigh stuck in traffic. (AOL)
Backlash & outcome:
- Audiences reacted poorly, calling the tone inappropriate for the festive season.
- McDonald’s temporarily disabled comments on its YouTube upload and ultimately pulled the ad entirely. (AOL)
- The brand acknowledged that its intent (a humorous take on holiday stress) had missed the mark for many customers.
Expert commentary:
This case underlined that AI‑generated satire and humor can misfire if cultural nuance and audience sentiment aren’t carefully considered.
4. H&M’s Digital Twin Models Controversy
What happened:
H&M announced it would create AI‑generated “digital twins” of 30 models to be used across social media and ad campaigns — potentially eliminating the need for traditional photo shoots. (Yahoo News)
Industry and influencer pushback:
- Critics, including fashion activists, raised ethical concerns around consent, compensation, and the broader impact on creative industry jobs if AI starts to replace human models, makeup artists, and photographers. (Yahoo News)
- Influencers called the initiative “shameful,” suggesting it could set a dangerous precedent in the fashion industry. (Yahoo News)
Brand response:
H&M said it was exploring how AI could support creativity responsibly, acknowledging that not all questions have answers yet. (Yahoo News)
Why it’s notable:
This controversy wasn’t just about ad quality but about AI’s impact on jobs, rights, and the human side of creative industries.
5. AI‑Generated Models in Vogue/Guess Ads
What happened:
A 2025 Vogue issue included ads produced with AI‑generated models (“Vivienne” and “Anastasia”) for Guess — labeled as such and created by an AI marketing agency. (Yahoo News)
Public reaction:
- Many readers slammed the images as promoting unrealistic beauty standards and voiced fears about the use of AI replacing real models and creatives. (Yahoo News)
- Some threatened to cancel their Vogue subscriptions in protest. (Yahoo News)
- The agency behind the campaign claimed it aimed to supplement the modeling world rather than replace it, but skepticism remained strong. (Yahoo News)
Industry ripple effects:
This situation reflected growing unease over AI’s encroachment into visual advertising spaces traditionally dominated by human talent, broadening the debate from technical glitches to societal and ethical issues.
Overall Reactions & Expert Commentary
Shifting Consumer Sentiment
A survey of over 6,000 U.S. consumers showed that 39% view AI‑generated ads negatively, with only about 18% feeling positive toward brands using AI content — signaling broader skepticism about AI creative content in ads. (Yahoo News)
Expert Views
Many adtech experts warn brands to be cautious about fully automating creative storytelling, arguing that AI often produces approximations of emotion rather than genuine innovation — and that mishaps make headlines for the wrong reasons. (Yahoo News)
Key Takeaways
AI can speed production and enable new possibilities — but missteps can harm brand reputation.
Consumers and creatives alike expect authenticity, subtle cultural nuance, and emotional resonance — areas where AI still struggles.
Ethical concerns about employment, consent, and representation are increasingly central to debates over AI in advertising.
What This Means for Marketers
These controversies aren’t just isolated flops — they reflect broader challenges about how brands should balance AI’s efficiency with human creativity, oversight, and ethical considerations. When AI is used to supplement rather than replace human judgment, many of the backlash risks can be mitigated.
Here’s a case‑study and comment‑driven look at five AI advertising controversies that grabbed attention in 2025 — from Meta’s AI granny mishap to Coca‑Cola’s shape‑shifting trucks — with what happened, social reactions, and expert commentary: (Business Insider)
1) Meta’s AI “Granny” Ads Gone Wild
What Happened
Several advertisers using Meta’s AI‑enhanced ad tools reported bizarre outcomes where Meta’s platform automatically generated and ran AI‑produced imagery instead of the intended creative. The most infamous example involved a True Classic ad — originally featuring a male model — being replaced with an AI‑generated friendly grandmother, completely off‑brand for the audience. (LinkedIn)
Reaction & Backlash
- Marketers were perplexed and frustrated, noting that settings meant to disable auto‑AI creative kept switching back on, leading to budget spend on unwanted visuals. (Reddit)
- A Nova adtech executive warned this emphasizes the limits of AI when creating emotional storytelling, saying people end up with “an approximation of human emotion” rather than innovation. (AOL)
Expert Comment
This controversy highlighted a core industry fear: opaque automation tools can hijack creative control, forcing brands to spend hours manually overriding defaults — the opposite of the “efficiency” promised by AI. (LinkedIn)
2) Coca‑Cola’s AI Holiday Trucks — Shape‑Shifting & Mixed Reactions
What Happened
Coca‑Cola continued its controversial run of AI‑generated holiday commercials, including new versions of its classic “Holidays are Coming” ads. Some eagle‑eyed viewers noticed the number of trucks appeared to change mid‑ad, and AI visual oddities sparked debate online. (AOL)
Reaction & Backlash
- Creative professionals and consumers called the visuals “soulless,” “creepy,” and lacking the nostalgia of older Coke spots — reactions echoed across social platforms. (euronews)
- Some comments even suggest the campaign feels like “AI slop” — a catch‑all term for AI output that lacks genuine artistic resonance. (Reddit)
- Despite the drama, third‑party testing still rated the ads highly for brand recall and long‑term growth potential — showing a disconnect between social buzz and marketing metrics. (AOL)
Expert Comment
Coca‑Cola’s example underscores how AI can accelerate production and lower costs, but many critics argue it diminishes the emotional quality and human artistry that define iconic commercials — especially around major holidays. (euronews)
3) McDonald’s Netherlands’ “Most Terrible” AI Holiday Ad
What Happened
McDonald’s Netherlands released a fully AI‑generated holiday ad intended as a tongue‑in‑cheek satire on seasonal stress — showing chaotic mishaps like broken decorations and traffic jams, with the message that the restaurant offered refuge. (AOL)
Reaction & Backlash
- Viewers criticized the tone as cynical, off‑putting, and insensitive for a holiday message.
- After disabling YouTube comments and facing mounting negative response, the brand ultimately pulled the ad entirely. (AOL)
Expert Comment
This case shows how AI‑generated humor and satire can easily misfire if not grounded in deep audience insight — a reminder that automated creative still needs careful human oversight.
4) H&M’s “Digital Twins” of Models
What Happened
Fast‑fashion giant H&M announced plans to create AI‑generated “digital twins” of 30 human models for use in social media and ad campaigns — images and likenesses the company claimed the human models would own the rights to. (Yahoo News)
Reaction & Backlash
- Fashion influencers and workers’ advocates called the move “shameful” and raised concerns about job displacement, consent, and compensation in an industry dependent on creative professionals. (Yahoo News)
- Critics warned that fully AI‑produced model imagery could undermine employment for stylists, makeup artists, photographers, and more. (Yahoo News)
Expert Comment
H&M’s plan ignited ethical debate about what role AI should play in industries built on human creativity and labor — not just technology for technology’s sake.
5) Guess Ads in Vogue Using AI Models
What Happened
In Vogue’s August 2025 issue, Guess ran ads featuring AI‑generated models (“Vivienne” and “Anastasia”) created by an AI agency — with a disclaimer noting they were produced by AI. (Yahoo News)
Reaction & Backlash
- Some readers slammed the campaign as promoting unrealistic beauty standards and criticized the use of AI models in a traditionally human‑centric space.
- Online commenters even threatened to cancel subscriptions and questioned the long‑term impact of AI replacing real talent in fashion photography. (Yahoo News)
Expert Comment
This controversy ignited broader cultural debates around AI’s impact on labor value, representation, and authenticity — especially when visuals replace or blur human identity.
Broader Industry & Consumer Commentary
Public Sentiment
A consumer survey found that 39% of U.S. respondents viewed AI‑generated ads negatively, with only ~18% feeling positive about brands using AI in marketing — indicating significant skepticism among the general public. (Business Insider)
Marketing Expert View
Industry voices caution that while AI tools are powerful, over‑automation without careful creative strategy can backfire. As one adtech executive put it, asking AI to “invent stories from scratch… yields an approximation of human emotion,” which can make headlines for all the wrong reasons. (AOL)
Key Takeaways for Marketers
AI can accelerate production and reduce costs, but creative oversight and audience empathy remain essential.
Controversies often stem from lack of context or emotional nuance, not the technology itself.
Negative sentiment doesn’t always damage metrics, but it does shape public perception.
Ethical concerns — job displacement, consent, representation — are rising alongside technical debates.