Blessing or Backlash? The Organizational Shift Toward In-House Generative AI Advertising Production in Indonesia

Abstract

This study examines the organizational shift toward in-house generative AI advertising production in Indonesia. As generative AI enables brands to produce visual assets, synthetic models, advertising copy, and campaign variations internally, traditional production arrangements involving external agencies, production houses, photographers, and model partners are being reconfigured. Guided by the Resource-Based View, Dynamic Capabilities Theory, Transaction Cost Economics, and the Automation–Augmentation Paradox, this study investigates whether this shift represents a strategic blessing or creates organizational and ecosystem backlash. A qualitative multiple-case study design was used, with data collected through semi-structured interviews with 14 informants representing in-house production teams, brand representatives, and external agency or production partners. The data were analyzed using thematic analysis. The findings show that in-house generative AI advertising production provides strategic benefits in terms of speed, cost efficiency, content scalability, personalization, campaign optimization, and creative workflow acceleration. However, the findings also reveal risks related to authenticity fatigue, emotionally weak content, copyright concerns, cultural misalignment, skill gaps, and pressure on external model agencies and production partners. The study concludes that this shift is best understood as selective internalization rather than full replacement. It becomes a blessing when AI augments human creativity and strengthens strategic control, but it becomes a backlash when AI is used merely as a cost-cutting substitute that weakens authenticity, displaces creative ecosystems, or undermines trust.