McDonald's has removed a glitchy AI-generated holiday commercial intended for the Netherlands following widespread online criticism over its 'soulless' visuals. The 30-second ad, featuring holiday mishaps set to a parody of 'It's the Most Wonderful Time of the Year,' was accused of lacking authenticity and quality. This incident highlights growing concerns about AI in advertising amid a surge in such tools.
McDonald's recently launched a 30-second Christmas ad exclusively for the Netherlands market, depicting a series of holiday-themed mishaps. The commercial parodies the song 'It's the Most Wonderful Time of the Year' by portraying it as 'the most terrible time of the year.' Produced with AI, the video features stitched-together short clips, hard jump cuts, illegible text, and unnatural details that viewers quickly identified as hallmarks of generative AI.
The backlash was swift and intense online, with critics labeling the ad as 'soulless' and chaotic. In response, McDonald's removed the video from its official pages, though the marketing agency The Sweetshop Film still hosts it on their website. This move comes as large corporations increasingly adopt AI for content creation, despite public aversion.
The incident echoes similar controversies, such as Coca-Cola's remake of its 1995 'Holidays Are Coming' ad, which used AI to generate forest animals following a truck through a snowy landscape. While Coca-Cola's video included an AI disclosure at the start and elements like Google's Veo generator, it too faced criticism for unrealistic fur details and exaggerated expressions. Coca-Cola has partnered with OpenAI since 2023 and employs an AI-first strategy through its agency Publicis Group.
A 2025 Canva report indicates 94% of marketers have dedicated AI budgets, with three-quarters expecting growth. However, with McDonald's 2024 revenue at $25.9 billion and Coca-Cola's at $47.1 billion, critics argue these firms could afford human creatives instead of AI 'slop.' Past examples include a Vogue ad with an AI-generated model from Guess, J.Crew's AI photography, and Toys R Us's AI giraffe in an ad using OpenAI's Sora.
Experts emphasize the need for transparency, like AI labels, to help consumers distinguish generated content. While AI promises efficiency, it raises fears of job losses in creative fields, as seen in recent Amazon layoffs. This backlash serves as a cautionary tale for AI in advertising, underscoring the tension between innovation and authenticity.