Does AI-generated UGC mark a new era of creativity in retail marketing?

17/12/2024

by Jennifer Meyer

An astronaut in a red spacesuit holds a bottle of Coca-Cola, illustrated in a surreal, artistic style; copyright: The Coca-Cola Company

User-generated content (UGC) has long been a fixture in modern marketing. But how does the use of artificial intelligence affect this style of content? And what does this mean for companies in retail marketing? We show how AI is revolutionizing the use of UGC and what opportunities it presents.

A reel on Instagram, a testimonial on Google, an unboxing video on YouTube – UGC has triggered an unprecedented shift in power in marketing. Where brands and then major influencers used to set the tone for a long time, user-generated content now dominates. “Almost 90% of consumers no longer trust influencers and rely on UGC instead,” explains Sarah Yim, Strategy Director of the Canadian creative agency Zulu Alpha Kilo in the Social Media marketing trends 2024 study.

The strength of UGC lies in its authenticity and proximity. Products and services are shown through the eyes of real people – an approach that creates trust and influences purchasing decisions.

User-generated content (UGC) refers to content that is created and shared online by users themselves, such as photos, videos, reviews or social media posts. This content is authentic and reflects personal experiences, which is why it is particularly credible and effective in marketing.

UGC: a success factor for brand marketing

With the growing importance of UGC, companies and agencies recognized its potential and began to actively exploit the trend. This gave rise to the UGC style: content that looks like classic UGC but is specifically commissioned and controlled by brands. Platforms such as Speekly or Influee offer creators who produce UGC-style content for a fee. These contributions combine the light-hearted, approachable aesthetic of UGC with strategic brand communication. Brands play out this content via their own channels and thus benefit from the authenticity of the format and the predictability of the message.

User-generated content is likely to play an even more central role in 2025. In its Global Ad Spend Forecast, the British market researcher WARC predicted that more and more advertising money will flow into social media, replacing traditional search engines as the largest advertising channel worldwide. Generation Z and millennials in particular are driving this trend: 46% of Gen Z and 35% of millennials already use social media to discover new products – often instead of search engines. If they come across authentic content that convincingly emphasizes the quality of a product, this can be a decisive factor in motivating them to buy.

Attention, emotion, conversion! Promotional and marketing activities can have a major impact. To do so, they must be applied in a targeted manner and implemented with the best tools. You will find inspiration for this in our Retail Marketing dimension at EuroShop!

Three images, on the left a ski gondola with skiers, in the middle the sole of a ski boot, on the right a depiction of a ski boot exploding into individual color parts; copyright: Reebok

How AI is strengthening the UGC trend

AI is already significantly changing how user-generated content is created and used. On the one hand, it helps brands to make the creation of UGC more efficient, while the use of AI also increases its quality, scalability and impact.

On the other hand, AI tools such as ChatGPT or Gemini also make things easier for consumers: professional-looking images and videos can be created with little effort. Large language models help with copywriting and translation, for example for product reviews or hooks for social media posts. AI tools can also be used to provide inspiration or try out different styles and looks.

How social media platforms react

Social media platforms are now also using artificial intelligence to further develop user-generated content. Pinterest, for example, has introduced an AI-supported collage tool that can significantly change UGC. It enables users to combine visual elements and create individual collages. Brands can in turn tag these collages and use them as an authentic part of their campaigns, for example in showcase ads or collection ads. This creates a new form of UGC.

A cat dressed in a space suit holds a can of Coca-Cola, set against a colorful, cosmic background; copyright: The Coca-Cola Company

Brands such as Reebok and Coca-Cola embrace an AI-supported reinterpretation of UGC

Reebok and Coca-Cola have already provided a foretaste of what could be seen more frequently in marketing in 2025.

With “Reebok Impact”, Reebok has developed an interactive format that offers users the opportunity to upload personal photos and use them to design individual digital sneakers. The creative process is carried out by an AI that generates designs based on the images submitted. Users can share the finished models or purchase them as files to use them on platforms such as Unreal Editor for Fortnite (UEFN) or Roblox.

Coca-Cola's “Create Real Magic” campaign also shows how the boundaries between classic UGC and AI UGC can be blurred. The brand provided an AI tool that allowed consumers to use elements of the Coca-Cola branding for their own creative designs. They could then share these with the world via social media and thus become part of an interactive brand experience.

The next level of scaling in content marketing: AI UGC

AI UGC (Artificial Intelligence User Generated Content) means that artificial intelligence helps to create content that looks like real user-generated content. AI can improve existing content from users, create new content in the UGC style or adapt posts so that they are suitable for different target groups. This creates authentic-looking content that can be produced more easily, quickly and in a more targeted manner.

In 2025, AI could finally become the catalyst for the UGC trend. AI is revolutionizing content creation and is going beyond supporting creators – it is increasingly replacing them. AI UGC is the keyword: with tools such as those from Arcads, brands can not only produce content faster and more cost-effectively, but also on a larger scale. This is because AI avatars take over the work instead of human creatives, eliminating the need for lengthy coordination and revisions. This saves resources and increases efficiency.

At the same time, AI enables the creation of numerous content variants that can be flexibly tested and precisely tailored to target groups. This leaves more room for strategic and creative tasks, while the AI takes over the otherwise time-consuming content production.

Although there are currently only a few examples of the use of AI UGC, the technology is developing rapidly. Soon, the difference between classic UGC and AI-generated content could be so minimal that it is barely noticeable – heralding a new era of content creation.

Challenges in dealing with AI-generated UGC

AI-generated content offers many advantages, but the biggest challenge remains the perception of authenticity. Content that is recognized as artificial could affect consumer trust. Brands risk losing the personal closeness and credibility that characterizes traditional UGC.

A good strategy is to combine real user content with AI-generated content. This maintains authenticity while AI ensures efficiency and customization. Transparency is also important: openness about the use of AI creates trust and shows that brands are using the technology responsibly.