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Mondelez, the maker of snacks such as Oreo and Cadbury, is reviewing its marketing strategies through adoption of newly developed generative AI tool aimed at reducing production costs by 30% to 50%.

Mondele is reviewing its marketing strategies through a adoption of newly developed generative AI tool aimed at reducing production costs by 30% to 50%.

This investment comes as the company navigates a challenging economic landscape characterised by rising tariffs and shifting consumer spending patterns.

The AI tool, which Mondelez has been developing in partnership with Publicis Groupe and Accenture, represents a significant technological advancement for the packaged-food giant.

With an investment exceeding $40 million, Mondelez anticipates that the tool will enable the rapid creation of short television advertisements, with initial deployments expected by the upcoming holiday season and potentially for the 2027 Super Bowl.

Jon Halvorson, Mondelez’s global senior vice president of consumer experience, highlighted the urgency of integrating AI into their marketing processes to enhance efficiency and reduce reliance on traditional advertising agencies.

Mondelez is not alone in this endeavour. Kraft Heinz and Coca-Cola are also exploring AI-driven advertising solutions. Notably, Coca-Cola ran AI-generated holiday ads in 2024, although the execution received mixed reviews from consumers.

Mondelez's approach, however, currently avoids using human likenesses in its AI-generated content, focusing instead on product-centric animations for brands like Chips Ahoy and Milka.

The generative AI tool has already been used for social media campaigns, showcasing visually engaging animations that resonate with targeted consumer demographics.

For instance, an eight-second video for Milka features dynamic chocolate visuals tailored to specific audiences, which Halvorson noted would traditionally cost hundreds of thousands to produce. By leveraging AI, Mondelez aims to streamline these processes and significantly reduce costs.

In the US market, the AI tool is set to enhance product pages for Oreo on major retail platforms such as Amazon and Walmart starting in November. Additionally, Mondelez plans to extend its use to Lacta chocolate in Brazil and Cadbury in the UK in the coming months.

Tina Vaswani, vice president of digital enablement and data at Mondelez, assured that all AI-generated content will undergo human review to prevent any potential missteps. The company has established guidelines to avoid promoting unhealthy eating habits and other sensitive topics.