The evolution of brand identity in the age of AI

What makes a brand identity? Is it the distinctive golden arches of McDonald's, the swoosh of Nike or the red and white script of Coca-Cola? While these visual elements are part of the equation, true brand identity goes much deeper.

Brand identity encompasses the entire emotional and sensory experience consumers have with a company. It's the consistent voice in advertisements, the feeling customers get when interacting with its products, and the values projected at every touchpoint. McDonald's isn't just golden arches; it's aimed at providing feel-good moments for everyone. The brand's identity is so powerful that it has often incorporated mere segments of the golden arches as billboards or social media creatives with minimal text needed. For example, one of its campaigns, ‘Follow the Arches,’ from 2018 simply used segments of its golden arches, using them as directional billboards to guide customers to nearby restaurants. 

Similarly, Coca-Cola has built its identity around more than just its bottle shape and typography. The company has associated itself with moments of happiness and togetherness, especially during holiday seasons. Its ‘Holidays are Coming’ campaign, running since 1995, has become so embedded in cultural consciousness that it is often remembered when one thinks of Christmas. 

"A brand's identity is shaped by its values, purpose, and emotional connection with its audience—it's not just how it looks, but what it makes the consumers feel," explains Ritu Nakra, General Manager Delhi at Landor India. 

These brand identities represent billions in investment and return. Interbrand's ‘Best Global Brands’ list in 2025 includes Coca-Cola at the seventh position with a brand value of $61.2 billion. Moreover, the brand is anticipating a 5% to 6% organic revenue growth for 2025, according to reports. McDonald's brand value increased by 7% compared to the previous year, driven by a strong Brand Strength Index (BSI) score and is projected to be $40.5 billion, as per Brand Finance.

Branding efforts create instant recognition, foster customer loyalty, and provide consistent experiences across global markets. Most importantly, they establish trust, and no matter where customers encounter these brands, they know exactly what to expect.

But what happens when artificial intelligence (AI) enters this carefully crafted equation? Can algorithms understand the nuanced emotional connections that form the foundation of brands? 

With image and video generation tools like Midjourney, DALL.E, Sora and more accessible to consumers and brands, it is being actively incorporated in brand communication. In a recent example, OpenAI's ChatGPT introduced its most advanced image generator into GPT‑4o. The feature allows users to turn their photos into images mimicking the distinct artistic styles. 

While the feature works incredibly well, it also raises concerns. The feature is being used to replicate Studio Ghibli's art style. This viral trend led OpenAI to temporarily impose a rate limit on the image generation feature due to overwhelming demand, practically melting its GPUs.

The integration of AI into branding is altering how companies create and deliver brand experiences. Beyond visual design, AI is helping brands connect with consumers on a personal level.

Brands like Netflix and Spotify use AI-driven personalisation, including recommendation engines that analyse individual viewing patterns to suggest content and music tailored to each user's preferences. 

Retail brands like Sephora’s Virtual Artist use AI and augmented reality to allow customers to virtually try on makeup products, while Starbucks utilises AI in its mobile app to suggest drinks based on previous orders.

While AI can enhance brand identity when used strategically, not all AI implementations have been as successful in maintaining brand integrity.

When AI branding goes wrong

Shashwat Das, Founder Director of Almond Branding, notes, "At its core, a brand is not just how it looks—but how it feels. AI can replicate aesthetics, but it can't replicate emotional insight, cultural nuance or a brand truth. That's our job."

However, in the rush to incorporate AI into their identity and communications, brands often miss this point.

The famous ‘Holidays are coming’ ad by Coca-Cola was reimagined using AI during Christmas 2024. The AI-generated holiday advertisements sparked significant backlash from the advertising community and consumers alike. The ads, which were created by three AI studios using four different generative models was described as "badly rendered, shiny faces and distorted proportions". YouTube comments have even noted the irony in the slogan ‘Always the real thing’ being applied to AI-generated content.

Similarly, Toys R Us released a 60-second ad using OpenAI's Sora text-to-video tool. While the brand touted it as a ‘pioneering’ use of technology in brand storytelling, many found the dreamlike visuals creepy and off-putting.

McDonald's experiment with AI handling drive-through orders resulted in embarrassing viral moments when the system accepted absurd orders like hundreds of McNuggets or ice cream with bacon. The brand eventually halted the program, acknowledging that the technology wasn't yet ready for widespread implementation.

Another significant controversy involved Pentagram's use of Midjourney for Performance.gov's design, which stirred industry-wide debate. Paula Scher defended using generative AI to create over 1,500 icons as a practical design solution, but it was accused of displacing artists and supporting AI tools trained on human artists' work without proper attribution.

These controversies could have real financial consequences. Research suggests that consumer trust in AI-generated content remains low, with more than 71% of consumers worrying about being able to trust what they see or hear because of AI. This indicates that brands rushing into AI implementation without careful consideration risk damaging consumer confidence and, by extension, their market value.

New markers of brand distinctiveness

If AI can generate any visual style instantaneously, what becomes the new marker of originality for brands? "Originality now lies less in how a brand looks and more in how it feels. A strong narrative, emotional resonance, and a consistent point of view are becoming the new markers of distinctiveness," says Ritu Nakra. 

She believes that it's the meaning behind the visuals and not just the visuals themselves that sets a brand apart.

Nakra also acknowledges there is a risk of homogenisation as brands rely on trending AI-generated styles. "The key is to treat AI as a starting point, not the final output. Originality still depends on the human layer—custom thinking, cultural context, and emotional nuance—that AI can't replicate."

This shift in focus from aesthetics to meaning represents perhaps the most significant transformation in how brands will establish identity in the AI era.

How are agencies changing their creative processes

For branding agencies, the integration of AI has begun changing workflows, roles, and value propositions. The creative process itself is evolving as AI tools become more sophisticated.

Ashwini Deshpande, Co-founder and Director of Elephant Design, believes that while execution aspects might be accelerated with AI tools, the strategic elements of branding remain firmly within human domain: "Defining a brand's meaning and context, its authentic story and purpose, cultural alignment, tone of voice and narrative will firmly remain within the offerings of a branding agency." 

She notes that AI can't handle platform or ecosystem thinking, nor can it conduct cultural assessments essential to branding exercises.

At Almond Branding, Shashwat Das shares a similar perspective.

"AI enhances execution—but never replaces thinking. It opens new creative possibilities, but strategy has always remained at the centre of our process." He emphasises that while AI can generate a logo, it can't build a brand people want to believe in. 

“That still requires human insight, intuition, and heart—and that's what we're truly in the business of."

At Landor, AI has improved speed and expanded the ability to experiment during early-stage visual exploration and moodboarding. However, Nakra emphasises that strategic thinking, conceptual development, and final design decisions remain human-led. 

Despite these changes, she maintains that the agency's core value proposition remains intact. 

"We're not just selling design, we're selling strategic storytelling, brand coherence, and culturally relevant thinking, all powered (not replaced) by emerging tech."

Evolving role of professionals

As AI tools become more integrated into creative workflows, the roles within branding agencies are being redefined rather than replaced. Nakra observes that "no role is becoming obsolete instantly, but many are evolving." 

Designers are becoming curators and editors of AI outputs, while strategists are more essential than ever in shaping meaning and guiding narrative. Copywriters are leaning into storytelling and tone, areas where human nuance remains critical.

New skills are also emerging as valuable additions to the creative toolbox. Prompt engineering and ethical use of AI are becoming increasingly relevant, Nakra notes, adding that more people, especially juniors, must start adopting the use of AI tools in their daily work life.

Deshpande highlights a shift toward curation as a key skill.

"A large part of the execution, like logo, visual adaptations to formats, copywriting, animation, may get accelerated with help from AI tools, shifting the focus of branding agencies to curation." 

She emphasises the importance of human judgment in selecting from AI-generated options and shares, "AI may generate a hundred logos, but without appropriate prompts and curation, AI is just visual pollution or noise at the moment."

The future of AI in branding

Looking ahead, it has been predicted that AI will continue to evolve packaging, design, and branding. According to industry reports, AI-powered smart packaging with embedded sensors will transform traditional packaging into interactive consumer touchpoints, while sustainable design optimisation through AI algorithms will help minimise material usage.

The branding agency Landor underwent a comprehensive rebranding in November 2023, introducing a new ultramarine blue identity inspired by the transformative nature of water. This rebrand symbolised a shift in services across consulting, design, and experience, with AI integration being part of its future strategy.

The rise of AI in branding presents both opportunities and challenges. While it can enhance efficiency, personalisation, and experimentation, the controversies surrounding its implementation reveal the continued importance of human judgment in storytelling/

As Shashwat Das puts it, "A brand's identity isn't just a logo—it's a distilled expression of purpose, personality, and emotion. While AI can now generate visual identities in seconds, that surface-level output often lacks soul."

The brands and agencies that thrive in this landscape will likely be those that leverage AI as a mere tool while maintaining a clear focus on the human elements that give brands their emotional resonance and cultural relevance.

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