Ads and AI: Leveraging AI Creative in 2026

In this episode of the Social Media Marketing Podcast, host Michael Stelzner dives into the transformative role of AI in ad creative, featuring expert Caleb Cruz, known as Mr. Paid Social. Cruz shares his journey from a 12-year veteran in paid social advertising to a leading AI ad strategist, highlighting how generative AI tools like Nano Banana, Sora 2, and Kling 3.0 are revolutionizing how marketers create high-quality, scalable ad content. He emphasizes that AI isn't just a time-saver—it's becoming essential for staying competitive, especially as platforms like Meta, TikTok, and Google integrate AI deeply into their ad ecosystems. Cruz walks listeners through practical workflows for generating AI images and videos, including using reference images, prompt engineering with AI assistance, and leveraging tools like ArcAds, AI Studio, and 11 Labs for voice cloning and sound effects. He also addresses critical concerns like brand safety, FTC compliance, and the ethical use of AI avatars, particularly in sensitive industries like apparel and skincare. The episode concludes with a strong call to action for marketers to embrace AI now, not as a threat, but as a powerful tool to scale creativity and performance. Key takeaways include: AI is no longer optional—it’s the future of scalable ad creative; tools like Nano Banana 2 and Sora 2 enable high-resolution, multi-scene video creation with minimal effort; prompt engineering can be automated using AI-generated templates; AI enables rapid A/B testing across personas, ages, and settings; and ethical use requires transparency and adherence to FTC guidelines. The episode underscores that AI doesn’t replace human creativity—it amplifies it, allowing marketers to experiment faster, produce more, and reach more audiences with authentic, platform-native content.