Generative AI: What It Means for Brands and Consumers

If you’ve been scrolling through your feed lately, chances are you’ve already seen it in ads, videos, or filters that just feel different. 

Perhaps it’s the way a product demo appears a little too polished. Or how a background scene feels like it came out of a dream instead of a photo studio. That’s not your imagination. That’s generative AI.

Generative AI (Gen-AI) is technology that learns patterns from data and then creates something new text, images, videos, voices, or even 3D assets. 

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“The magic of generative AI is in unlocking creativity. When I see an AR Lens turn a simple product into something people can play with, laugh at, and share, that’s when I know we’ve crossed a line into real connection. Technology should feel human. Our job is to make sure every AI-powered moment is not just clever code in the background; it should be transparent, trustworthy, and delightful,” Raza, CTO

Think of it as a co-pilot that can generate marketing content in seconds, where you used to need teams, cameras, and long editing cycles. The possibilities are massive. But so are the challenges.

Why Brands Are Falling in Love with Gen-AI

Marketing is under pressure. Budgets are tight, campaigns are expected to land faster, and audiences demand content that feels personalized. Gen-AI steps in as a time-saver and a scale-booster.

• Speed – Concepts that used to take weeks now happen in hours.
• Scale – One product video becomes a hundred variations across languages, formats, and audiences.
• Personalization – Ads that feel like they’re talking to you, not a generic crowd.
• Experimentation – Want to see your sneaker in a cyberpunk city? Or your lipstick in a vintage Paris café? Done.

But speed and scale don’t guarantee success. Without care, AI content risks being bland, uncanny, or untrustworthy.

What the Snapchat Study Tells Us

Snapchat partnered with PMG and Eye Square to test AI in real-world contexts, involving 14,800 consumers across 7 markets and 150 marketers. The findings are eye-opening:

• AI video + AR lenses win, hands down. Compared to static ads, these formats scored higher on attention, recognition, and both upper and lower funnel metrics. In plain terms, they don’t grab eyeballs; they move people closer to purchase.
• Consumers see AI + AR as “premium.” These ads were described as more innovative, more entertaining, and more worth talking about. 
• But… photorealistic people are still creepy. Viewers accepted AI for products, environments, and effects. But fully synthetic humans? Not so much. The trust gap is still there.

This is important because it validates what many of us suspected: AI works best when it amplifies play and immersion, rather than pretending to replace people.

Transparency

One of the most significant takeaways from the study is that transparency is crucial. Consumers don’t necessarily reject AI outright. What they dislike is feeling tricked.

• Millennials, for example, warmed up to AI ads after disclosure.
• Gen Z, meanwhile, stayed a bit more skeptical, but disclosure didn’t tank performance either.

This is a cue for brands: stop fearing disclosure. Position it as a feature, not a flaw. Try: “This Lens was AI-assisted, brought to life by our creative team.” You frame AI as a collaborator, not a replacement.

The Tools That Make It Happen

Snap is also democratizing creation:

• Lens Studio, equipped with AI tools, enables creators to generate backgrounds, objects, or effects from simple text prompts.
• Sponsored AI Lenses are already powering campaigns from Uber to Coldplay, blending fun with engagement.
• Snapchat+ AI Lenses demonstrate how everyday users are eager to experiment with generative visuals, retaining users through delight rather than obligation.

This is a creator opportunity. Anyone with a creative idea can now create interactive, immersive content without a massive budget.

The Ethical Side

But here’s where the optimism needs balance.

• Snapchat’s “My Selfie” AI ads raised eyebrows when users discovered their AI-generated face could appear in personalized ads. Officially, only they see it, but critics argue that it blurs the line between personalization and manipulation.
• AI bias is a real threat: filters and models have been known to lighten skin tones or reinforce narrow beauty standards. Without oversight, brands risk alienating the very audiences they want to include.

This is where brand safety and ethics must catch up. Governance can’t be a “later problem.” Audit your AI assets, test them across diverse demographics, and establish consent mechanisms that are transparent and not hidden in fine print.

Consumers Are Already Living With AI

One more thing: this isn’t abstract. AI is woven into daily habits.

• Nearly one in four U.S. adults uses generative AI on a daily basis. For 18-to 34-year-olds, it’s closer to 4 in 10.
• Gen Z already associates Snapchat strongly with AI so much that AI-powered filters, Lenses, and features aren’t “special.” They’re expected.

That means consumers are less wowed by novelty. They want value, relevance, and fun. Brands that treat AI as spectacle will fade fast. Brands that utilize it to address real needs, such as fit, personalization, and immersion, will emerge as winners.

How to Get This Right

Here’s how to lean in without losing trust:

1. Disclose with confidence. Own it. Transparency boosts trust.
2. Keep AI playful. Use it for environments, objects, effects, not fake people.
3. Govern tightly. Audit prompts, bias-test assets, and watermark outputs.
4. Localize with care. In markets like Brazil, test language, device performance, and cultural nuance.
5. Stay human. Let AI scale your work, but keep storytelling and authenticity in human hands.

Conclusion

Generative AI is no longer a gimmick; it’s a powerful tool. It’s here, reshaping how ads are made, shared, and judged. 

Snapchat’s research proves it: AI and AR can outperform static formats if brands prioritize disclosure, ethics, and human oversight.

For creators, this is an invitation to experiment boldly. For brands, it’s a wake-up call to build governance before regulators or consumers demand it.

Because AI can create content in seconds. But trust takes years to build and only seconds to lose.