WSJ What’s News – “How AI Is Reshaping the Advertising Industry”
Original Air Date: February 8, 2026
Host: Alex Osola
Guests: Katie Dayton and Suzanne Vernica, WSJ Advertising Journalists

Episode Overview

This episode of “What’s News Sunday” dives into the visible and subtle ways artificial intelligence is reshaping the advertising industry, with a special focus on how these changes are coming to the forefront during Super Bowl Sunday—advertising’s biggest night. Host Alex Osola interviews Wall Street Journal reporters Katie Dayton and Suzanne Vernica to explore:

• The emergence and impact of AI companies as Super Bowl advertisers,
• How, where, and why AI is being used in creating commercials,
• The broader impact on creatives, agencies, and industry structure,
• What to watch for in today’s crop of Super Bowl ads.

Key Discussion Points & Insights

1. AI’s Spotlight at the Super Bowl

• Rise of AI Company Ads [02:41]
  • 2026 marks a pivotal year as AI companies like Anthropic, OpenAI, and Microsoft (Copilot) buy Super Bowl ad slots.
  • Suzanne Vernica: “Every year there's a big category that comes out, and this year it's going to be the AI Bowl. Definitely. You've got Anthropic that's making their Super bowl debut. OpenAI is expected to air a spot. Microsoft is going to be pushing Copilot. So that's a lot.” [02:41]
  • AI giants are engaged in a “death match” for user mindshare, using massive audiences to build brand recognition.
• The Value & Competition for Creativity [03:34]
  • Super Bowl ads must stand out to avoid backlash or obscurity.
  • Companies rely on star power: “So there's a big competition on whose are gonna be the most creative. And that's why you see lots of companies putting multiple celebrities, hoping that helps them stick out.” – Suzanne Vernica [03:36]

2. Is AI Making the Ads Themselves?

• Current Uses — Mostly Behind the Scenes [04:01]
  • AI is predominantly used for research, briefing, and production assistance, not main ad creation.
  • On using AI for ad visuals: “Obviously, we've seen lots of companies put AI creative out there, and it doesn't look great in many cases. That's the future, there's no doubt. But right now, people are using it on the back end more than the front end.” – Suzanne Vernica [04:01]
• Experimentation & Limitations [04:27]
  • When AI-produced ads are made, companies heavily promote the “AI-generated” aspect to highlight innovation, but the results still lag behind top creative (e.g., “If you have Yorgos Anthemos directing a beautiful black and white spot Starring Emma Stone, and then right afterwards, you put something AI produced… it's not quite holding up creatively.” – Katie Dayton [04:35])

3. Why Are Companies Turning to AI for Ads?

• To Cut Costs and Satisfy Shareholders [05:06]
  • Large sums are at stake — up to $8 million per 30-second slot, plus production costs.
  • “If an agency can come along and go, you know what? We're just going to do that on a computer, they can save so much money.” – Katie Dayton [05:06]
• Are Audiences Responding? [05:47]
  • Mixed reactions: Creatives dislike fully AI-made spots, but the general public may not notice, especially for nostalgia-rich content.
  • Example: Coca-Cola’s AI-generated holiday ad performed well due to familiar music and visuals.
  • The industry hasn’t yet seen an AI ad that “has done something completely original that people have loved.” [05:47]
  • Svedka’s “fembot” AI-generated ad [06:46] typifies the current creative use: leaning on established tropes, not inventing new ones.

4. AI’s Expanding Role Beyond Visuals

• AI in All Stages of Ad Creation [08:42]
  • AI manages “grunt work”: research, briefing, storyboards, and creating near-final mockups for review—all to increase efficiency.
  • “There are companies...that have spent the last two years feeding these bots all of their old advertising, all of their brand books...You're not going to be able to tell the difference...between what's now called AI slop and what looks like a perfectly created spot. We're a little bit away from that at this point, but we're going to get there.” – Suzanne Vernica [08:42]
• Artificial Audiences for Testing [09:43]
  • Agencies now use “artificial audiences”—AI-modeled consumer groups for pre-release testing—speeding up campaigns and cutting traditional market research costs.
  • “They can now do these things called artificial audiences where they can replicate what a real audience might be thinking...that again, saves so much time and money.” – Katie Dayton [09:43]

5. Legal and Ethical Questions

• Transparency and False Claims [08:00]
  • No law requires disclosure that AI generated an ad, but misleading AI visuals (e.g., unrealistic beauty) could have legal consequences.
  • “If you think about AI, there are legal ramifications, because if you're a beauty brand and your person that you're showing with the hair is done with AI, then that's actually a false claim in many lawyers that I've spoken to's opinion.” – Suzanne Vernica [08:00]
  • Industry is in active discussion about these implications as usage grows.

6. Industry Impact and Shifting Agency Landscape

• Consolidation, Layoffs, and a New Playing Field [10:19–10:51]
  • AI is accelerating industry trends: consolidation of agency holding companies, layoffs, less need for big creative teams.
  • “We're seeing a massive consolidation at the holding company level...We're already seeing some of this. People will call this an AI led thing. The problems had existed. AI is just going to exacerbate them.” – Suzanne Vernica [10:19]
  • Smaller, nimble agencies may thrive: “It opens up the playing field slightly, especially when the technology gets a little cheaper.” – Katie Dayton [10:51]

7. What to Watch for in 2026’s Super Bowl Ads

• The “AI Bowl” and Quirky Counter-Programming [11:34–12:51]
  • Suzanne: “Anthropic's ad is definitely going to be one that generates a ton of water cooler buzz because it's this topical moment in the battle for AI users.”
  • Katie: Anticipates bathroom humor as counter-programming, coining the phrase “Pooper Bowl” due to a surprising number of toilet-related ads.
  • “Lowest common denominator.” / “Everybody poops.”

Notable Quotes & Moments

• On the Super Bowl’s Role as an Ad Platform:
  “There's nothing better for name recognition in today's world than the Super Bowl Sunday.” – Suzanne Vernica [03:14]

• On AI’s Creative Limits:
  “We haven't really seen AI ads that have done something like completely original that people have loved yet.” – Katie Dayton [05:58]

• On Legal Ramifications:
  “If you're a beauty brand and your person that you're showing with the hair is done with AI, then that's actually a false claim...” – Suzanne Vernica [08:10]

• On Industry Upheaval:
  “We're already seeing the fallout. We're seeing a massive consolidation at the holding company level...AI is just going to exacerbate them.” – Suzanne Vernica [10:19]

• Super Bowl Ad Humor:
  “I tried to coin the phrase the Pooper bowl, because we have three ads in, one of which is national, a couple of which are on regional buys that all have to do with the bathroom.” – Katie Dayton [11:58]
  “Everybody poops.” – Katie Dayton [12:51]

Timestamps for Key Segments

• [02:41] – Introduction of AI companies advertising in the Super Bowl.
• [03:36] – Why creative quality matters more than ever.
• [04:01] – How AI is (and isn’t) used to make ads right now.
• [05:06] – Why companies choose AI—cost, scale, and effectiveness.
• [05:47] – Audience response to AI-generated ads.
• [06:46] – Svedka’s AI-generated ad example.
• [08:00] – Legal and ethical considerations for AI in advertising.
• [08:42] – AI’s broader integration into production and campaign development.
• [09:43] – Use of “artificial audiences” in ad testing.
• [10:19–10:51] – Impact of AI on agencies, jobs, and competition.
• [11:34] – Predictions for the most talked-about Super Bowl ads (AI battles, toilet humor).
• [12:51] – Light banter: “Everybody poops.”

Conclusion

This episode offers an in-depth yet accessible look at the transformation of advertising in the AI era, revealing how AI is not only an emerging theme in Super Bowl commercials but also fundamentally changing how ads are strategized, produced, and tested. Creative quality remains the industry’s holy grail, even as costs and operational efficiencies drive rapid AI adoption behind the scenes—raising new legal, ethical, and workforce questions. As Super Bowl ads highlight, the intersection of AI technology, creativity, and audience engagement is only beginning to be explored.

For listeners interested in both the business and cultural sides of advertising, this episode provides sharp analysis, real industry examples, and a preview of what to watch during the year’s biggest night for commercials.