Amazon’s Creative Studio AI agent creates free video ads for small businesses

Amazon has launched a new AI agent that automates the entire advertisement production process, from audience research to video creation, targeting small businesses that typically lack access to high-quality ad production resources. The tool, available through Amazon’s Creative Studio, leverages the company’s vast e-commerce data and multiple AI models to create professional-grade advertisements at no additional cost to advertisers.

What you should know: The AI agent handles every aspect of ad creation, from initial concept to final video production.

• The tool suggests product taglines, generates custom imagery, creates music and voiceovers, and assembles multi-scene video ads.
• It’s powered by Amazon’s retail insights combined with AI models including Amazon’s Nova family and Anthropic’s Claude.
• The agent uses “customer shopper signals” and analyzes advertiser pages to create targeted ad creative.
• Currently in beta, the tool is free for all Amazon Ads advertisers with no minimum ad spend requirement.

How it works: Users interact with the agent through natural language prompts via a new “chat” feature in Creative Studio.

• An outdoor gear retailer, for example, could provide basic brand information and product details like a backpack’s webpage.
• The agent responds with tagline options and ad concepts, explaining its reasoning for each suggestion.
• Once a concept is selected, the tool generates scripts, images, and other assets that can be fine-tuned.
• The agent maintains transparency by explaining each step, allowing advertisers to edit even minor details.

The competitive landscape: Amazon joins other tech giants in automating advertising production for businesses.

• Meta, the parent company of Facebook and Instagram, has introduced similar AI tools for advertisers and reportedly plans to automate the entire ad production process by year-end.
• In June, Amazon launched its Video Generation tool, allowing brands to create AI-generated video ads from still product images.
• The move positions Amazon to compete more directly in the advertising automation space while leveraging its unique e-commerce data advantage.

Why this matters: The tool democratizes access to professional-quality advertising that was previously limited to well-funded brands.

• “Creative Studio’s powerful new AI tool acts like a creative partner and strategist at your fingertips, helping advertisers of all sizes produce polished, professional-quality ads in just hours — at no additional cost — unlocking the same creative edge once reserved for the biggest brands,” Amazon stated.
• The development reflects broader industry tensions around AI’s role in creative work, with companies positioning these tools as augmentation rather than replacement for human creativity.
• Amazon’s approach leverages its position as the world’s largest e-commerce platform, using consumer shopping data to inform ad strategy in ways competitors cannot replicate.