Abstract

In November 2025, the Coca-Cola Company was criticized on social media for using generative AI for creating the iconic yearly Christmas commercial, "Holidays Are Coming”. The commercial, didn’t go down well with netizens who called it ‘soulless’ and ‘creepy’, as they found the AI-generated images of animals and animated scenes unsettling and inconsistent. Furthermore, the viewers alleged that the emotional appeal, warmth of storytelling, and nostalgia that were linked to Coca-Cola's advertising tradition were apparently missing in the advertisement. Creative professionals also expressed concern over Coca-Cola's reliance on AI rather than human ingenuity and perceived it as a cost-cutting move that might adversely impact their livelihood. However, Pratik Thakar, Global vice president and head of generative AI, Coca-Cola, went ahead with the use of AI stating that the company was looking for new methods to engage customers. Industry experts were divided on the discussion on the use of AI in business. Coca-Cola’s AI ad and the outcry it caused posed a significant challenge for Pratik. How will Pratik strike a balance between embracing technology and preserving the nostalgia that consumers expect from Coca-Cola ads? How will he ensure responsible use of AI while recognizing the contributions of human creators?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Explain the concept of nostalgia marketing and its importance for legacy brands.
• Analyze the risks associated with using Gen AI in advertising to enhance customer experiences
• Design a framework for ethical and responsible use of AI in advertising.

Keywords

Coca-Cola; Advertising; Artificial Intelligence; Nostalgia Marketing; Emerging Technology; Brand Management; Customer engagement; Pratik Thakar,Coca-Cola; Advertising; Generative AI; Emerging Technologies; Nostalgia Marketing; Consumer engagement; Human Creativity vs AI