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AI Slop for Christmas: Why McDonald’s and Coca-Cola’s AI Holiday Ads Missed the Mark

Commentary: Two billion-dollar companies using AI for holiday ads isn’t giving me that holly jolly feeling.

I am completely exhausted by huge corporations like McDonald’s and Coca-Cola choosing to rely so heavily on AI for their holiday ads. McDonald’s made $25.9 billion in revenue in 2024, and Coca-Cola made $47.1 billion. Do these companies expect us to be OK with AI slop garbage when they could’ve spent a tiny fraction of that to hire a real animator or videographer?

In case you haven’t been inundated with these AI commercials, I’ll back up a bit. Both McDonald’s and Coca-Cola have launched holiday-themed commercials that are undeniably made with AI — each bragged about its use of AI, which they have probably come to regret. They’re very different, showing the full range of what’s possible with AI in advertising. But the backlash against both proves we don’t have the appetite for AI slop.

McDonald’s commercial features a series of holiday-themed mishaps, set to a parody of the song It’s the Most Wonderful Time of the Year, about how it’s actually the most terrible time of the year. The commercial is only 30 seconds long and intended only for the Netherlands, but it has already garnered so much hate online that the company removed the video from its pages. The marketing agency behind the spot, The Sweetshop Film, still has the video up on its website.

The McDonald’s ad is very clearly AI, with short clips stitched together with a bunch of hard jump cuts. The text isn’t nearly legible, fine details are off and it just has that AI look I’ve come to quickly recognize as an AI reporter. In a now-deleted social media post, the marketing agency’s CEO talked about how it used various AI tools to create it. By contrast, the Coca-Cola commercial is a little more put-together. A Coca-Cola truck drives through a wintry landscape and into a snowy town, and forest animals awaken to follow the truck and its soda bottle contents to a lit Christmas tree in a town square. But even this video has clearly AI-generated elements.

While disappointed, I wasn’t surprised when I saw the ad and the resulting backlash. There has been a surge in creative generative AI tools, especially in the past year, with numerous AI tools built specifically for marketers. They promise to help create content, automate workflows and analyze data. A huge proportion (94%) of marketers have a dedicated AI budget, and three-quarters of them expect that budget to grow, according to Canva’s 2025 Marketing and AI report. That’s partly why we’ve seen a massive increase of AI-generated content in our social media feeds. It’s no wonder Merriam-Webster selected ‘slop’ as its word of the year.

McDonald’s and Coca-Cola’s feel-good, festive commercials manage to hit upon every single controversial issue in AI, which is why they’re inspiring such strong reactions from viewers. AI content is becoming — has already become — normalized. We can’t escape chatbots online and AI slop in our feeds. McDonald’s and Coca-Cola’s use of AI is yet another sign that companies are plowing ahead with AI without truly considering how we’ll react. Like advertisements, AI is inescapable.

If AI in advertising is here to stay, it’s worth breaking down how it’s used and where we, as media consumers, don’t want to see it used.


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Spotting the AI in Coca-Cola’s ad

McDonald’s now-removed ad was clearly AI, with its plastic-y people and jerky motions. Its format, a series of short clips stitched together with hard jump cuts, is another telltale sign since most AI video generators can only generate clips up to 10 or so seconds long. Coca-Cola’s ad was a little different, but the AI use was just as obvious.

The Holidays Are Coming ad is a remake of Coca-Cola’s popular 1995 ad. In a behind-the-scenes video, Coca-Cola breaks down how it was created. It’s obvious where AI was used to create the animals. But I’m not sure I believe the company went «pixel by pixel» to create its fuzzy friends.

Coca-Cola’s AI animals don’t look realistic; they look like AI. Their fur has some detail, but those finer elements aren’t as defined as they could be. They also aren’t consistent across the animal’s body. You can see the fur gets less detailed further back on the animal. That kind of detailed work is something AI video generators struggle with, but it’s something a (human) animator likely would’ve caught and corrected. 

The animals make overexaggerated surprised faces when the truck drives past them, their mouths forming perfect circles. That’s another sign of AI. You can see in the behind-the-scenes video that someone clicks through different AI variations of a sea lion’s nose, which is a common feature of AI programs. There’s also a glimpse of a feature that looks an awful lot like Photoshop’s generative fill. Google’s Veo video generator was definitely used at least once.

The company has been all-in on AI for a while, starting with a 2023 partnership with OpenAI. Even Coca-Cola’s advertising agency, Publicis Group, bragged about snatching Coca-Cola’s business with an AI-first strategy. It seems clear that the company won’t be swayed by its customers’ aversion to AI. (Disclosure: Ziff Davis, CNET’s parent company, in April filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)

All I want for Christmas is AI labels

There is exactly one thing Coca-Cola got right, and that’s the AI disclosure at the beginning of the video. It’s one thing to use AI in your content creation; it’s entirely another to lie about it. Labels are one of the best tools we have to help everyone who encounters a piece of content decipher whether it’s real or AI. Many social media apps let you simply toggle a setting before you post. 

It’s so easy to be clear, yet so many brands and creators don’t disclose their AI use because they’re afraid of getting hate for it. If you don’t want to get hate for using AI, don’t use it! But letting people sit and debate about whether you did or didn’t is a waste of everyone’s time. The fact that AI-generated content is becoming indistinguishable from real photos and videos is exactly why we need to be clear when it’s used.

It’s our collective responsibility as a society to be transparent with how we’re using AI. Social media platforms try to flag AI-generated content, but those systems aren’t perfect. We should appreciate that Coca-Cola didn’t lie to us about this AI-generated content. It’s a very, very low bar, but many others don’t pass it. (I’m looking at you, Mariah Carey and Sephora. Did you use AI? Just tell us.)

AI in advertising

In June, Vogue readers were incensed when the US magazine ran a Guess ad featuring an AI-generated model. Models at the time spoke out about how AI was making it harder to get work on campaigns. Eagle-eyed fans caught J.Crew using «AI photography» a month later. Toys R Us made headlines last year when it ran a weird ad with an AI giraffe, though it did share that it was made with an early version of OpenAI’s Sora.

Something that really stung about the use of AI by Guess and J.Crew is how obvious it was that AI was used in place of real models and photographers. While Coca-Cola and Toys R Us’s use of AI was equally clear, the AI animals didn’t hit quite the same. As the Toys R Us president put it, «We weren’t going to hire a giraffe.» Points for honesty?

Even so, it’s more than likely that real humans lost out on jobs in the creation of these AI ads. Both commercials could’ve been created, and probably improved, if they had used animators, designers and illustrators. Job loss due to AI worries Americans, and people working in creative industries are certainly at risk. It’s not because AI image and video generators are ready to wholly replace workers. It’s because, for businesses, AI’s allure of cutting-edge efficiency offers executives an easy rationale. It’s exactly what just happened at Amazon as it laid off thousands of workers.

It’s easy to look at Coca-Cola’s and McDonald’s AI holiday ads and brush them off as another tone-deaf corporate blunder, especially when there are so many other things to worry about. But in our strange new AI reality, it’s important to highlight the quiet moments that normalize this consequential, controversial technology just as much as the breakthrough moments.

So this holiday season, I think I’ll drink a Pepsi-owned Poppi cranberry fizz soda instead of a Coke Zero.

Technologies

Google races to put Gemini at the center of Android before Apple’s AI reboot

Google is using its latest Android rollout to position Gemini as the AI layer across phones, Chrome, laptops and cars.

Google is using its latest Android rollout to make Gemini less of a chatbot and more of an operating layer across the phone, browser, car and laptop, just weeks before Apple is expected to show its own Gemini-powered Apple Intelligence reboot at WWDC.
Ahead of its Google I/O developer conference next week, the company previewed a number of Android updates, including AI-powered app automation, a smarter version of Chrome on Android, new tools for creators, a redesigned Android Auto experience, and a sweeping set of new security features.
Alphabet is counting on Gemini to help Google compete directly with OpenAI and Anthropic in the market for artificial intelligence models and services, while also serving as the AI backbone across its expansive portfolio of products, including Android. Meanwhile, Gemini is powering part of Apple’s new AI strategy, giving Google a role in the iPhone maker’s reset even as it races to prove its own version of personal AI on the phone is further along.
Sameer Samat, who oversees Google’s Android ecosystem, told CNBC that Google is rebuilding parts of Android around Gemini Intelligence to help users complete everyday tasks more easily.
“We’re transitioning from an operating system to an intelligence system,” he said.
As part of Tuesday’s announcements. Google said Gemini Intelligence will be able to move across apps, understand what’s on the screen and complete tasks that would normally require a user to jump between multiple services. That means Android is moving beyond the traditional assistant model, where users ask a question and get an answer, and acting more like an agent.
For instance, Google says Gemini can pull relevant information from Gmail, build shopping carts and book reservations. Samat gave the example of asking Gemini to look at the guest list for a barbecue, build a menu, add ingredients to an Instacart list and return for approval before checkout.
A big concern surrounding agentic AI involves software taking action on a user’s behalf without permissions. Samat said Gemini will come back to the user before completing a transaction, adding, “the human is always in the loop.”
Four months after announcing its Gemini deal with Google, Apple is under pressure to show a more capable version of Apple Intelligence, which has been a relative laggard on the market. Apple has long framed privacy, hardware integration and control of the user experience as its advantages.
Google’s Android push is designed to show it can bring AI deeper into the device experience while still giving users control over what Gemini can see, where it can act and when it needs confirmation.
The app automation features will roll out in waves, starting with the latest Samsung Galaxy and Google Pixel phones this summer, before expanding across more Android devices, including watches, cars, glasses and laptops later this year.
The company is also redesigning Android Auto around Gemini, turning the car into another major surface for its assistant. Android Auto is in more than 250 million cars, and Google says the new release includes its biggest maps update in a decade and Gemini-powered help with tasks like ordering dinner while driving.
Alphabet’s AI strategy has been embraced by Wall Street, which has pushed the company’s stock price up more than 140% in the past year, compared to Apple’s roughly 40% gain. Investors now want to see how Gemini can become more central to the products people use every day.
WATCH: Alphabet briefly tops Nvidia after report of $200 billion Anthropic cloud deal

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Waymo recalls 3,800 robotaxis after glitch allowed some vehicles to ‘drive into standing water’

Waymo issued a voluntary recall of about 3,800 of its robotaxis to fix software issues that could allow them to drive into flooded roadways.

Waymo is recalling about 3,800 robotaxis in the U.S. to fix software issues that could allow them to “drive onto a flooded roadway,” according to a letter on the National Highway Traffic Safety Administration’s website.
The voluntary recall is for Waymo vehicles that use the company’s fifth and sixth generation automated driving systems (or ADS), the U.S. auto safety regulator said in the letter posted Tuesday.
Waymo autonomous vehicles in Austin, Texas, were seen on camera driving onto a flooded street and stalling, requiring other drivers to navigate around them. It’s the latest example of a safety-related issue for the Alphabet-owned AV unit that’s rapidly bolstering its fleet of vehicles and entering new U.S. markets.
Waymo has drawn criticism for its vehicles failing to yield to school buses in Austin, and for the performance of its vehicles during widespread power outages in San Francisco in December, when robotaxis halted in traffic, causing gridlock.
The company said in a statement on Tuesday that it’s “identified an area of improvement regarding untraversable flooded lanes specific to higher-speed roadways,” and opted to file a “voluntary software recall” with the NHTSA.
“Waymo provides over half a million trips every week in some of the most challenging driving environments across the U.S., and safety is our primary priority,” the company said.
Waymo added that it’s working on “additional software safeguards” and has put “mitigations” in place, limiting where its robotaxis operate during extreme weather, so that they avoid “areas where flash flooding might occur” in periods of intense rain.
WATCH: Waymo launches new autonomous system in Chinese-made vehicle

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Qualcomm tumbles 13% as semiconductor stocks retreat from historic AI-fueled surge

Semiconductor equities reversed sharply after a broad AI-driven advance, with Qualcomm suffering its worst day since 2020 amid inflation concerns and rising oil prices.

Semiconductor stocks fell sharply on Tuesday, reversing course after an extensive rally that had expanded the artificial intelligence investment theme well past Nvidia and driven the industry to unprecedented levels.

Qualcomm plunged 13% and was on track for its steepest single-day decline since 2020. Intel shed 8%, while On Semiconductor and Skyworks Solutions each lost more than 6%. The iShares Semiconductor ETF, which benchmarks the overall sector, fell 5%.

The sell-off came after a key gauge of consumer prices came in above forecasts, and as conflict in Iran pushed crude oil higher—prompting investors to shift away from riskier assets.

The preceding advance had widened the AI opportunity set beyond longtime industry leader Nvidia, which for much of the past several years had largely carried the market to new peaks on its own.

Explosive appetite for central processing units, along with the graphics processing units that power large language models, has sent chipmakers to all-time highs.

Market participants are wagering that the shift from AI model training to autonomous agents will lift demand for additional AI hardware. Among the beneficiaries are memory chip producers, which are raising prices as supply remains tight.

Micron Technology slid 6%, and Sandisk cratered 8%. Sandisk’s stock has surged more than six times over since January.

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