Coca-Cola AI Ad Backlash: Why Is the Soda Company Doubling Down?

Coca-Cola is back with its AI Santa and Christmas ads. The backlash surrounding Coca-Cola’s AI ads has intensified this year. The AI-generated “Holiday Magic Is Coming” ad has been making headlines after the soda company released it online. 

The beverage giant didn’t stop at releasing the ad; they also put out a full behind-the-scenes breakdown and praised their own process of making an AI ad. 

We’re not here to beat a dead horse after a month of discourse. The genie is out of the bottle, and it’s not going back. So let’s dive into Coca-Cola’s second attempt at an AI holiday ad. 

Coca-Cola AI ad backlash is real

You can’t just dismiss the criticism and negative sentiment from viewers. Yes, System1 gave the ad a 5.9 out of 5.9, the highest rating in their system. 

Andrew Tindall, VP at System1, said that a handful of comments doesn’t reflect the reality of an ad’s performance. 

But beyond these commendations, users know what they’re reacting to: the uncanny valley visuals, the absence of human faces, and the amount of AI slop throughout the video. It left a bad impression. 

Frank Landymore of Futurism wrote that this may be more of an embarrassing reflection on Coke’s own AI efforts, especially since video-generation models like OpenAI’s Sora 2 and Google’s Veo 3 have advanced significantly this year. 

The YouTube comments are packed with negativity, from anti-AI viewers to Pepsi loyalists. Many are openly cheering for Pepsi over Coke. 

So, why is Coca-Cola doing it?

Last year, we at Ad Pulse reported that Coca-Cola is one of the many brands that have been experimenting with AI for a few years. 

Yes, Coca-Cola is in its experimental era. And why not? Their market cap is hovering around $300 billion, and quarterly revenue graphs are at an all-time high. 

The company is not going to sweat over an AI-generated ad nudging a consumer psyche to make a purchase. Coke doesn’t need persuasion in science. Coke is a persuasion science. 

It seems the job description for a Coca-Cola Christmas ad in 2025 is pretty much: “Remind the world we’re still here. That’s it. That’s the brief.” Their risk profile is calm. 

So, when Coca-Cola pours money into AI ads, it’s not because AI will magically sell more soda. It’s because they can afford to play. 

This is a company that dresses Santa Claus in a red suit. A company whose Christmas trucks, jingles, and visuals are permanently implanted in global pop culture. Coke has already won the recognition game.  

However, we are not going to drag the discussion or pour love over AI creations. 

But let’s call it what it is: a flex that still needs human intervention

The ad is soulless. AI cannot create mindful or meaningful stories, and this one proved it. What we got was a plain, beige animal fiesta for no logical reason. 

Five AI experts, 70,000 generated videos, and the full arsenal of Veo 3, Sora, KlingAI, Luma, and more, and Coca-Cola still landed on something this lackluster. Yet the executives are thrilled with the final product. 

Why? Efficiency, speed, and cost-effectiveness

Speaking to WSJ, Manolo Arroyo, CMO of Coca-Cola, said, “Before, when we were doing the shooting and all the standard processes for a project, we would start a year in advance. Now, you can get it done in around a month.” 

And still, we got sloths and polar bears chilling in the same habitat. AI didn’t fact-check itself, and nobody in the room cared enough to intervene. Silly mistakes, but clearly not dealbreakers for them. 

Coca-Cola is also preparing to restructure its staff, or, more bluntly, resize its workforce. According to company executives, the restructuring outlined in the October earnings call is expected to take shape next year as the company incorporates more AI and agentic technologies. 

It seems that fewer humans will remain in the process next time. 

Cut to the chase

Coca-Cola is doubling down on its AI ad adventure. Whether social media is voicing concerns or creative professionals are expressing anger, the soda company has made up its mind about AI and human partnership.