
- Thu, 21 August 2025
User-generated content (UGC) has redefined the way brands interact with their audiences. UGC includes anything consumers create to share their experience with a product or service, such as photos, videos, reviews, or social media posts.
Its authenticity and relatability make it an invaluable tool in fostering trust, building community engagement, and driving conversions.
A recent study found that 79% of consumers say User-Generated Content (UGC) influences their purchasing decisions, highlighting its power in shaping brand perception. However, traditional UGC isn’t without its challenges.
Producing high-quality, impactful User-Generated Content (UGC) often requires substantial resources—coordination with creators, handling copyright concerns, and time-intensive revisions.
a groundbreaking approach that blends human authenticity with the efficiency of automation. This article explores how AI is transforming User-Generated Content (UGC), making it faster, scalable, and more accessible.
This means that users, undoubtedly important whether they are regarded as actual opinion leaders or not, are the main creators of content in traditional User-Generated content (UGC).
Although genuine, it poses a number of challenges:
It took a lot of time to work with creators because the content has to be reviewed multiple times before editing.
Spendy: Marketing funds could stretch somewhat thin when influencers have to be paid or major campaigns are being set into motion.
Challenges with Scalability: In its original form, User-Generated content (UGC) cannot be scaled if you are not to be constantly engaging and recruiting your content contributors.
These are driven by AI avatars, pre-defined templates, generative algorithms or any content as a service, moving this idea directly to AI-generating User-Generated content (UGC).
Quickness: AI eliminates the delay that comes with coordinating creators; the moment you get your material ready, AI makes it fit for use in minutes.
Creating a couple of valuable articles that provide an outstanding consumer experience does not necessarily have to cost a lot for brands.
Customization: However, through AI systems, companies may direct certain demographics or platforms with their content thus increasing engagement rates.
How fashion brands can reach millennials is by producing AI based video testimonials using avatars that align with the target consumer taste profile.
Various cutting-edge technologies collaborate to produce AI-generated User-Generated Content (UGC):
1. AI Avatars: These refers to a real person that is created in the computer and which can be animated and programmed to look like a human and lip synched. Avatars may play a role in making brands access its audience through its age, ethnic background, and voice.
2. Arcades: for example allows marketers to input scripts, change the graphic and create content tailored to a campaign all of which can be automated and customized. Such a feature makes sure that all of the information appears timely and up-to-date.
3. Generative AI Models: Modern AI techniques use LLMs and generative models to generate proficient and contextually accurate material. You can create: social media posts, video adverts, and even engage in interactive lessons with your audience on those platforms.
4. On-the-Go Feedback and Optimization: By means of artificial intelligence, organizations can perform parallel experiments of several content variants, accruing metrics for real-time changes towards a particular campaign.
Another way of knowing what a certain audience wants is to experiment on different tones when presenting product reviews.
At a global level, this sector is worth $13 billion in 2023, and market analysts anticipate it will skyrocket in the coming years. One of them is a new type of UGC generated by AI which is much cheaper compared to other more traditional approaches to content production.
Reducing Expenses: Hashtags, sponsored promotions, and extensive post-processing unmask themselves in most conventional user-generated content (UGC) campaigns. These costs are handled by AI which mainly frees resources where they are most useful in the company’s operations.
AI makes it possible to waste less time to get a campaign ready and this means that companies can take advantage of seasonal opportune moments or trends as they come.
In this sense, AI enables us to scale our solutions although we do not necessarily have more content and tools to dedicate to the generation of content for many platforms.
Example
One mid-sized e-commerce firm tried to create the client testimonial films using the avatars created with the help of AI and as a result, they reduced the costs related to the video ad production by 60%. During the first month of using PPC, CTR benefited from a 25% rise in the specific brand.
AI-generated user-generated content (UGC) is the go-to for marketers because of all the amazing benefits it offers:
First, it is effective; it takes weeks when employing conventional methods while, employing the Arcads and other AI tools, it only takes minutes to design content. Social media also gives brands the ability to be agile in response – a factor that helps brands to stay relevant.
2. Scalability: AI provides the scalability that was lacking in conventional user-generated content (UGC)-based initiatives – whether it is to generate locally contextual creatives for global campaigns or generate hundreds of ads.
3. Low-Cost: Thanks to Artificial Intelligence no more costly models, photographers and editors are needed. An example of such AI is AI User-Generated Content (UGC) that may benefit startups and other small companies in their battle with their larger competitors.
4. Inclusivity and Diversity: That is why avatar as the form of artificial intelligence may look differently, reflecting different demographics; this makes marketing more accessible.
5. Iteration and Improvement: Employing Artificial Intelligence, companies can experiment with tones, modes, and formats in their strategies, and the data informs necessary refining.
UPLE: A First Approach to Advertising through AI-Generated user-generated content (UGC)
1. Pick the Right Platform: Arcades, AdCreative AI, and other similar tools offer convenient means to create content that is based on artificial intelligence.
2. Establish Your Goals:
Understand what exactly do you want to achieve – is it brand Building or does it aim to increase the number of transactions or does it intend to increase its users’ engagement with the user-generated content (UGC)?
3. Personalize Content: Select AI characters, enter dialogues, and change the appearance of images to align with your company’s ethos.
4. Put it to the Test and Study It: Check how everything is going and make the change where necessary with the help of the information provided by the platform.
5. Extend as Necessary: Once you have some successful formats, copy these and use them in as many different modes as possible to get your message out to the largest number of people.
Even while AI user-generated content has a lot of potential, in order to keep customers’ confidence, marketers need to deal with ethical issues:
They should not mislead their audiences so it is advisable to inform them when the content is generated by AI.
Veracity: Make sure that your tone and the principles of your brand are followed throughout the text.
We conclude that working with AI technologies, it is necessary to conform to all legislative requirements for data protection as well as for advertising legislation.
Taking these factors into consideration, brands may well benefit themselves from AI generated UGC while keeping up the credibility and authenticity.
Combining the quality of human-generated information with the quantity and promptness of AI, UGC is reinventing marketing by offering promotional materials in the form of ‘discoverable’ content. Small companies and large corporations worldwide have embraced AI to develop unique, engaging, high-quality content faster and with comparatively lower costs.
When applying the notion of artificial intelligence to the promotion domain, the effects arise clearer as the technology advances. Thus, it is vital to outline AI-generated user-generated content as a current that is only going to strengthen in the future instead of a trend.
The UGC that can be in the form of videos, text, or photos that are forged to have been generated by users but are actually created by artificial intelligence are called fake UGC.
Sharing artificial intelligence-based ugc is affordable, large-scale, and convenient for organizations with limited resources.
UGC is closely linked to conventional content marketing, and AI can enhance it through quick and scalable solutions . However, if the two are blended little this makes[s] the results to be real.
Plain truth and accountability are ethical factors which have to be considered. For this reason, brands should disclose the AI they employ to customers to avoid giving out wrong information.
Some of the potential end-users who would benefit immensely from the use of AI in generating UGC include the e- commerce, SaaS companies, marketing firms, and mobile application developers.
References
1. Arcads
2. Techcrunch
3. Hubspot
4. Forrester
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