Snacking giant Mondelez is using generative AI to slash marketing costs and is preparing to release AI-generated TV ads next year, a senior executive told Reuters.

Jon Halvorson, Mondelez’s global senior vice president of consumer experience, said the company has spent more than $40 million on an AI video tool that can halve production costs. TV ads made using the tool should be ready to air in time for the 2026 holiday season, he said, and potentially the 2027 Super Bowl. 

Mondelez is already using the tool to make social content for Chips Ahoy cookies and Milka chocolate, and will use it to design online product pages for Oreo cookies in November. 

Companies are increasingly turning to AI to cut ad spending, though results are mixed. Last year, Coca-Cola’s AI-generated Christmas ads were savaged online as “soulless” and creepy.