From analyzing data sets in seconds to answering just about any question under the sun—AI tools have taken the world by storm. The technology has seemingly endless applications, and it’s still considered to be in its early stages of development. With the rapid emergence of video GenAI tools, the technology is thinning the line between what’s real and what’s pixels.
Capitalizing on this hyper-realistic video generation capability, New Zealand has recently aired its first AI-generated television commercial. The launch of this TVC could be transformative for the media industry. But it also calls for potential legal battles that could put a spanner in the works. Let’s dive in and see where the Kiwi nation is placed on this scale.
Bremworth, a wool carpet company based in New Zealand made headlines when it announced the nation’s first-of-its-kind AI-generated TVC. Drummed up completely by a string of algorithms, the commercial features a brunette woman surrounded by cloud-like wool, which glides across landscapes and eventually falls on a lounge floor as a rich carpet.
Bremworth’s Chief Brand and Product Officer, Rochelle Flint, was delighted to launch the new ad. "We are proud to share our new TV commercial, believed to be the first time a complete TVC has been created visually by AI for broadcast in NZ", she wrote.
Flint explained how the advanced production method helped the company save a significant amount in both time and cost. The company witnessed a 60% reduction in production cost, along with a much shorter time span between production and go-live.
Bremworth strategically used these saved costs as a reinvestment for promotion in local media channels, extending their reach by over an estimated 1.7 million views. The ad campaign is live on the Kiwi television networks and all digital media platforms.
Bremworth’s example is opening up a world of possibilities for the use of AI in TV ads. The production strategy can help brands churn out campaigns faster, while also saving big on costs.
Highlighting the power of using AI, Flint explained, "For our Crafted Feels Different campaign, it has allowed us to develop a beautiful video asset without real-world creative constraints, within less time and for less money vs if we had created it via a traditional method”.
However, she also pointed out that the process wasn’t entirely smooth. For instance, she explained how her team found it difficult to make minor changes to the scenes and settings, causing creative disruptions.
Interestingly, the use of AI in TVCs isn’t new on a global scale. Earlier in 2024, Toys R Us launched an ad generated entirely by OpenAI’s Sora video-gen tool—although it did end up facing a ton of backlash for it.
Now, to the big question—is New Zealand really ready for a trend of using AI in TVCs? What are the possible legal implications?
As per intellectual property rights lawyer Narly Kalupahana, The New Zealand Copyright Law has provisions for putting computer-generated work under copyright.
The nation’s Fair Trading Act also covers misleading representations under section 13. For instance, if your ad makes people misinterpret fake personalities in your ad as someone in real life, you would be breaching the Fair Trading Act.
Expert industry reports highlight the nascent nature of the technology. They particularly point towards the tool’s drawbacks related to its unreliable and repetitive nature.
A Capterra report stated, “AI-generated videos may require additional manual oversight. While a powerful tool, AI video generators are most effective when combined with human creativity and oversight”.
No business wants to be left behind when experimenting with AI tools in their advertisements. A survey showed that 54% companies have already used GenAI tools to create video content, while another 34% plan to do so.
Thus, it seems that as the technology evolves further, it won’t be long before we see multiple brands using GenAI for their TVCs. Nevertheless, the trend is still not going to replace the human element and contribution that is required in advertising and media production.