Singapore's Gen AI Ad Boom Carries Real Risks for Brands Cutting Corners

Generative AI advertisements are flooding the Singapore market at breakneck speed. From Mr Bean's virtual idol to Dyson livestreams on Shopee and Lazada, brands across the spectrum are racing to show they're at the frontier of AI. Creative agencies specialising in AI content told CNA that demand has surged four to five times since late 2025, with enterprise clients — not just SMEs — leading the charge.

The shift is striking. When AI Studio founder Carol Tan first pivoted her agency to focus on AI-generated content about 18 months ago, businesses were nervous about being associated with the technology. Now the dynamic has flipped entirely: companies want to be seen as cutting-edge, and they're spending to prove it. Songs, films and marketing materials for this year's National Day celebrations all incorporated generative AI, signalling the technology's mainstream arrival in Singapore's advertising landscape.

But there's a catch. Reddit threads are already crowded with consumers mocking ads that look too obviously machine-made. Industry experts warn that poorly executed AI content — think uncanny-valley visuals or generic copy — actively pushes customers away rather than drawing them in. The bar for quality hasn't lowered just because production costs have; if anything, audiences are becoming more discerning about what's authentically crafted versus what's been churned out in seconds.

Why it matters for Singapore: The tension between AI adoption and brand credibility is shaping up as a defining challenge for Singapore's marketing industry. Companies that invest in high-quality AI workflows — using the technology to augment creative teams rather than replace them — will build lasting advantage. Those cutting corners risk damaging their brand equity in a market where consumers are increasingly sophisticated about AI-generated content.