Mondelez Leverages Generative AI to Cut Marketing Costs by Up to 50%

Snack giant Mondelez International, the maker of Oreo, Cadbury, and Chips Ahoy, is using a new generative AI toolto revolutionize marketing content creation and reduce production costs by 30% to 50%, according to a Reuters report. Developed in partnership with Publicis Groupe and Accenture, the tool aims to streamline ad production, making it faster and significantly cheaper.

Mondelez began developing the AI system last year and has already invested over $40 million in its creation. The company expects that by next year’s holiday season—and potentially by the 2027 Super Bowl—the AI tool will be capable of producing broadcast-ready video ads.

Currently, the AI is being used to create digital content for brands such as Chips Ahoy in the U.S. and Milka in Germany. For instance, one AI-generated Milka ad showcases chocolate waves flowing over a wafer, with visuals adapting to different consumer demographics. Mondelez plans to expand usage soon to Oreo and Lacta in Brazil and Cadbury in the UK, with Oreo’s Amazon and Walmart product pages set to feature AI-generated visuals this November.

The initiative reflects Mondelez’s broader strategy to combat rising costs, tariffs, and changing consumer spending habits through automation. By reducing dependence on traditional ad agencies, the company can produce creative assets faster and at a fraction of the cost—especially since high-quality animation typically costs hundreds of thousands of dollars.

While competitors like Coca-Cola and Kraft Heinz also explore AI-driven marketing, Mondelez emphasizes ethical use. The company’s content rules forbid promoting unhealthy habits, vaping, overconsumption, emotional manipulation, or stereotypes. Vice President Tina Vaswani confirmed that all AI-generated content undergoes human review to ensure brand safety and accuracy.

Mondelez’s investment marks a major shift in how global brands use artificial intelligence in advertising, setting a new standard for cost efficiency and creative innovation in digital