Abstract

This case study discusses the impact that the proprietary Generative AI (Gen AI) tool called AIDA (AI+Data) of the US-based multinational confectionery company Mondelēz International, Inc. (Mondelēz) would have on the world of advertising. The case study begins with a brief history of Mondelēz and provides reasons for the high marketing costs incurred by such fast-moving consumer goods (FMCG) companies. The case describes in detail the rationale behind the development of AIDA by Mondelēz in collaboration with advertising company, Publicis Groupe and the IT firm Accenture Plc. With more than 60% of its advertising and consumer promotion spending directed towards creative development and production, Mondelēz was keen to address rising costs and increasing demands for personalized, high-volume digital content, through AIDA. By 2025, Mondelēz had used AIDA to create automated digital display advertisements and animations for select brands, with plans to use it to generate video content in the future. Mondelēz had positioned its AI tool not as a replacement for human creativity but as an operational enabler embedded in its existing marketing strategy. While early pilots demonstrated gains in speed and efficiency, uncertainty remained about the magnitude and sustainability of long-term cost savings. How aggressively should Mondelēz scale AI deployment across its marketing communications without compromising the brand integrity?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the strategic rationale behind an FMCG company’s investment in Gen AI.
• Examine the build-versus-buy decision process in the context of AI tools.
• Evaluate how AI tools can transform creative production processes in the FMCG industry and provide a competitive advantage.
• Assess the governance, ethical, and brand control challenges associated with scaling Gen AI in global marketing operations.

Keywords

Generative AI; Creative Automation; Content Production; AI-driven Marketing Transformation; Ad Agency; PESTLE Analysis; Personalization; Marketing Costs; Brand Integrity; Competitive Advantage; Differentiation; FMCG industry; Responsible AI; Human-in-the-loop Governance; and Marketing Technology.Mondelēz; Creative Strategy; AI Applications; Media Planning & Strategy; Marketing Automation; Data Tools; Build Versus Buy Decision; Uncanny Valley Effect; AI in Product Development; Porter’s Generic Strategies.