Broadcasters are deploying AI-generated advertising tools to help small and medium-sized enterprises (SMEs)access TV advertising for the first time to create new revenue streams. The move is prompted because traditional advertising revenue is under pressure. Channel 4 and ITV have both launched services enabling small businesses to create TV ads within minutes by using AI.
Channel 4’s Smart Ad Engine, launched at no cost to SMEs in November 2025, generates TV ad creation based on businesses’ existing online footprint and social media presence. The broadcaster subsequently offers paid-for options, including human-led creative development and Clearcast regulatory submission assistance.
ITV launched its AI-generated ad service in September 2024, with commercial director Jason Spencer confirming the broadcaster would avoid creating AI-generated people and instead use real actors. Sheepbridge Interiors, a Northern Ireland-based furniture store, became the first to debut a generative AI-created ad on UTV.
According to Marketing Week’s 2025 Language of Effectiveness research, 57.5% of brand marketers are already using AI to generate content. However, AI-generated video content continues to raise ethical questions and quality concerns following several high-profile failures.
McDonald’s removed an AI-generated Christmas advertisement in the Netherlands after online criticism highlighting obvious errors including missing limbs and distorted visuals. One viewer described it as “AI slop,” though Marketing Week columnist Tom Roach urged caution against dismissing all AI advertising, noting some performs well in testing.
Industry experts suggest broadcasters may lack capacity to support an influx of smaller businesses. One SME founder reported difficulty understanding broadcaster sales representatives who spoke as if clients already knew advertising terminology and couldn’t answer specific technical questions.
The broadcaster push into AI advertising comes as traditional TV revenue faces sustained pressure. Industry observers note that whilst AI creates a more level playing field for advertisers, broadcasters must find new ways to generate revenue as TV no longer holds its historical market dominance.
For brands like Vistry, which entered TV advertising in 2024, AI has enabled access previously blocked by high production costs. Jenny Edwards, head of digital at Vistry, described the ability to utilise AI as an absolute game changer for moving into TV advertising.
