Oreo-maker Mondelez to Use New Generative AI Tool
The confectionery corporation Mondelez is leveraging artificial intelligence technology to reduce advertising expenses and plans to launch AI-created television commercials in the coming year, based on recent reports.
According to Jon Halvorson, who serves as Mondelez's global senior vice president of consumer experience, the organization has invested over $40 million in an artificial intelligence video platform capable of reducing production expenses by fifty percent. Television commercials created through this platform are expected to be broadcast-ready for the 2026 holiday period, with possible deployment during the 2027 Super Bowl.
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The food processing company initiated development of this platform in the previous year through partnerships with advertising agency Publicis Groupe and technology consulting firm Accenture. Mondelez anticipates the platform will produce brief television advertisements ready for broadcast as early as next year's holiday season, with potential use for the 2027 Super Bowl, according to Jon Halvorson, the company's global senior vice president of consumer experience.
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The company is currently utilizing this platform to create social media content for Chips Ahoy cookies and Milka chocolate products, and plans to employ it for designing web-based product pages for Oreo cookies this November.
The manufacturer behind Cadbury chocolate has put more than $40 million into this platform, Halvorson noted, mentioning that cost reductions would increase as the tool develops capabilities for producing more complex video content.
Confronting tariff pressures and declining consumer spending power, Mondelez is joining other consumer product manufacturers in embracing artificial intelligence to reduce advertising agency costs and accelerate product development and launch timelines.
Competitors including Kraft Heinz, known for macaroni and cheese, and Coca-Cola have similarly experimented with AI in their advertising efforts. Coca-Cola deployed AI-generated holiday advertisements in 2024, though some customers mocked the digitally created characters for appearing emotionally inauthentic.
Mondelez has not yet incorporated human figures into its AI-produced materials.
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The company is currently deploying content created by this new technology across social platforms for its Chips Ahoy cookie brand in America and Milka chocolate products in Germany. One brief eight-second Milka advertisement features flowing chocolate cascading over a wafer cookie, with varying backgrounds tailored to specific consumer demographics Mondelez wants to reach.
Traditional animation costs run "into the hundreds of thousands," according to Halvorson. "This approach represents significantly lower expenses."
For the American market, Oreo plans to implement this technology for product listings on Amazon and Walmart platforms in November. Mondelez intends to deploy the system in upcoming months for Lacta chocolate and Oreo products in Brazil, plus Cadbury offerings in the United Kingdom, Halvorson explained.
Tina Vaswani, the company's vice president overseeing digital enablement and data operations, emphasized that human oversight will always review the tool's output to prevent potential problems. Mondelez maintains guidelines that forbid promoting unhealthy consumption patterns, vaping, excessive eating, emotionally exploitative messaging, and harmful stereotyping, based on documentation provided by the Chicago-headquartered corporation.