Introduction
Mondelez, the global snacking and chocolate giant, is revolutionizing ad production with generative AI. The company is cutting the costs of creating marketing content by 30-50%, a significant reduction reflecting how major corporations tackle shrinking margins and tightening consumer budgets.
With an investment of over $40 million, Mondelez has developed an innovative tool alongside Publicis Groupe and Accenture. This approach marks a turning point in marketing, where AI doesn't replace human creativity but amplifies its efficiency.
The Project: Strategic Partnership
Mondelez began developing the tool last year, partnering with two strategic players: advertising agency Publicis Groupe and technology consulting firm Accenture. The goal was clear: accelerate content production while maintaining high quality standards and reducing time-to-market.
Jon Halvorson, Mondelez's global senior vice president of consumer experience, stated the tool will be capable of creating short TV ads ready for broadcast by the upcoming holiday season, with potential use for Super Bowl 2027. This ambitious timeline demonstrates management's confidence in the technology's potential.
Current Applications and Future Developments
Currently, Mondelez is already testing the tool on social media content for iconic brands like Chips Ahoy in the USA and Milka in Germany. A concrete example: an eight-second Milka video shows chocolate waves rippling across a wafer, with different backgrounds depending on target consumer.
In November, Mondelez's generative AI will support product pages for Oreo on Amazon and Walmart. Additionally, the company plans to extend tool usage to Lacta and Oreo in Brazil, and Cadbury in the UK in coming months.
Economic Impact: Substantial Cost Reductions
The cost savings are substantial. Halvorson explained that traditional animations cost hundreds of thousands of dollars, while the same work performed by the AI tool costs orders of magnitude less. As the tool expands capabilities to create more complex videos, savings will grow further.
In a context where trade tariffs and reduced consumer budgets squeeze margins for consumer goods companies, these savings are strategic. Mondelez and competitors are using AI not only to innovate but to compete in an increasingly challenging market.
Industry Trend: Competitors on the Move
Mondelez isn't alone in this transition. Kraft Heinz and Coca-Cola are also experimenting with AI for ad production. In 2024, Coca-Cola launched holiday ads created entirely by AI, though the computer-generated faces received criticism from some consumers for lacking authentic emotion.
Mondelez takes a more cautious approach: it doesn't insert synthetic human likenesses in AI-generated content. This choice reflects awareness of reputational risk and the need to maintain perceived authenticity, even as automation advances.
Safety and Governance: The Role of Human Control
Tina Vaswani, vice president of digital enablement and data at Mondelez, emphasized that human oversight remains fundamental. Humans always verify what the tool produces to prevent any errors or missteps.
The company has established strict rules: content highlighting unhealthy eating habits, vaping, overconsumption, emotionally manipulative language, and offensive stereotypes is prohibited. This governance framework ensures automation doesn't compromise brand values and corporate responsibility.
Conclusion
Mondelez's investment in generative AI represents a watershed moment in food marketing. By cutting costs 30-50% and accelerating time-to-market, the company demonstrates how technology can be a strategic competitive advantage. The model adopted—partnership with agencies and consultants, rigorous human oversight, protected corporate values—offers a roadmap for other organizations embracing AI without sacrificing quality, safety, and reputation.
FAQ
What cost reduction has Mondelez achieved with generative AI?
Mondelez has reduced ad production costs by 30-50% using the new generative AI tool. A video normally costing hundreds of thousands of dollars now costs orders of magnitude less.
Who helped Mondelez develop the AI tool?
Mondelez partnered with Publicis Groupe (advertising agency) and Accenture (technology consulting firm). The company invested over $40 million in the project.
Which Mondelez brands already use generative AI?
Chips Ahoy (USA) and Milka (Germany) are already in use on social media. Oreo will appear on Amazon and Walmart in November, with Lacta (Brazil), Oreo (Brazil), and Cadbury (UK) following soon.
Does Mondelez use synthetic human faces in AI-generated content?
No. Mondelez takes a conservative approach and does not use synthetic human likenesses in its AI content, unlike Coca-Cola which tested this with mixed results.
How does Mondelez ensure quality and safety of AI-generated content?
Humans always review content created by the tool. Mondelez applies strict rules prohibiting content on unhealthy eating habits, vaping, overconsumption, manipulative language, and offensive stereotypes.
When will Mondelez use AI to create full TV ads?
The tool will be capable of creating short TV ads ready for broadcast by the upcoming holiday season, with potential use for Super Bowl 2027.
Which other competitors use generative AI for advertising?
Kraft Heinz and Coca-Cola are experimenting with AI for ad production. In 2024, Coca-Cola launched holiday ads created entirely by AI.