Amazon has introduced a new artificial intelligence-powered video creation tool for Australian retailers. This allows sellers to create dynamic, high-quality ads on the marketplace in minutes.
The system is designed to be easy. When a seller uploads one product image, the platform’s AI transforms it into up to six different video concepts, each featuring realistic movement and multiple scenes. What once required a production team, budget, and editorial expertise can now be done with minimal effort.
Amazon says the rollout is aimed at making advanced advertising more accessible, especially for small and medium-sized businesses that have traditionally had to pay for video marketing. The company believes this will narrow the gap between big brands and independent sellers.
However, the growing adoption of AI in advertising is raising concerns. Shoppers are increasingly questioning whether what they see reflects reality or sophisticated, artificial versions of products. This concern poses a potential challenge for Amazon as it continues to expand into a huge global market.
Willie Pan, managing director of Amazon advertising for Australia and New Zealand, said the company had built safeguards to maintain trust. He pointed out that product images seen on some competing platforms can be misleading or diverge from the actual product.
Pan explained that the tool relies on existing product images and detailed identifiers such as ASINs and SKUs to ensure accuracy. He stressed that the visuals are not fabricated, but are generated from real product data, with the goal of matching what customers receive.
He added that mismatched expectations can quickly damage a seller’s reputation. If buyers feel misled, they are less likely to return, and poor performance will ultimately impact sales results. Therefore, the system is designed to prioritize consistency between visuals and the actual product.
Still, brands that use AI-generated content are facing criticism. Some campaigns have been labeled as disturbing or inauthentic. One example involves sleepwear brand Peter Alexander. The company used computer-generated dogs in its campaigns and released products that featured visible design errors and distorted images.
Pang argued that if applied carefully, AI can still provide significant benefits, especially for small businesses looking to expand. US data suggests that advertisers using this video tool saw a 12.1% increase in conversion rates. Additionally, over 60 percent of the items promoted through this feature had never been featured in video format before.
For Australia’s small and medium-sized enterprises, efficiencies can be significantly improved. Internal research shows that marketing teams could save approximately 7.3 hours each week by implementing AI tools, which translates into approximately 45 work days per year.
Pan compared this change to the early days of Internet advertising, when companies were hesitant to move away from print directories. At the time, he was working in the field and had to convince businesses that digital communications could reach customers instantly.
Looking back, he sees new video tools as part of a similar transformation. With millions of small and medium-sized businesses operating in Australia, he believes this technology provides the first real opportunity to use video at scale. This format consistently delivers strong engagement.
Business owners who have tested the tool say it’s a huge step forward. Chao Wang of stationery brand Vignette says this allows for faster experimentation and faster realization of ideas. Eugene Chen, founder of The Sneaker Laundry, said this allowed his company to expand into video advertising and support continued growth.
The system leverages Amazon’s own Nova model and external AI technology while maintaining a connection to verifiable product information. Still, as such tools become available, new questions arise for businesses. When everyone can create sophisticated video content, it becomes more difficult to stand out.
Pan believes the current version is just the beginning. He cites agentic AI, where systems operate more autonomously, as the next step. This could lead to automated workflows, more in-depth storytelling, and long-term brand development handled primarily by AI.
In his view, Video Generator is an entry point. This provides businesses with an initial level of sophistication, with the potential for more advanced features to be added later.
