YouTube makes creating AI videos easier as platform closes in on $40B in ad revenue

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YouTube is introducing innovative AI capabilities for Shorts, edging towards a staggering $40 billion in yearly advertising income. However, not all users are thrilled with this development.

On the 23rd of July, they unveiled plans to launch tools aimed at making AI content creation simpler and more enjoyable for developers. These tools encompass a “Video from Photo” generator, fresh visual enhancements, and an improved GenAI center referred to as the “AI Amusement Park.

YouTube announced a new feature that enables users to turn their concepts into tangible videos by converting photos, incorporating novel visual effects, and providing an intuitive interface to utilize all the creative tools offered by GenAI.

We’re rolling out innovative tools aimed at making creating Shorts an enjoyable and effortless experience 📹.

Bring your concepts to life using our new Photo-to-video feature, enhanced generative effects, and a streamlined method for utilizing all of our GenAI creation options

For more details, check out the info in the following thread and this article:…

— TeamYouTube (@TeamYouTube) July 23, 2025

The action comes amidst increasing discontent among creators and viewers due to an influx of minimal effort, artificially generated content on YouTube.

“Oh goodie, just what we need, more AI content! No we don’t!” one user posted.

As a passionate content creator, I’ve noticed that crafting a video can take quite some time for many of us. On the other hand, those leveraging AI seem to whip up their videos in a jiffy. But here’s the question: Which one might the bots flag as less authentic?

Interestingly, the new update arrives mere weeks following YouTube’s stricter enforcement of their monetization policies aimed at restricting “non-genuine” content.

YouTube nears $40B in annual ad revenue

Regardless of any resistance, the platform’s financial growth remains strong, potentially due to its adoption of AI technology.

As per Alphabet’s Q2 2025 earnings statement, YouTube earned approximately $9.8 billion from advertisements during the last quarter. This is an increase from $8.93 billion in Q1 and represents a 13% growth compared to the same period the previous year. The platform is projected to surpass $40 billion in ad revenue for the entire year, driven by election ads, brand investments, and a significant emphasis on performance marketing.

In simpler terms, YouTube Shorts are significantly contributing to the platform’s earnings. During a recent discussion, CEO Sundar Pichai revealed that Shorts generate an equivalent amount of revenue per viewing hour compared to conventional in-stream ads. In certain areas, they even surpass this figure.

Currently, YouTube is persistently trying to counteract adblockers, a struggle that unintentionally affects users without the blocker. Additionally, Premium Lite members are still subjected to advertisements while viewing Shorts, an action that has sparked controversy.

In the early days of July, it was disclosed that YouTube has been accumulating enormous sums due to unauthorized uploads of series such as Squid Game, adding complexity to their position regarding artificial intelligence-produced and non-authorized content.

As YouTube continues to thrive on ad revenue and delve further into the realm of General Artificial Intelligence creation, the disparity between creators’ values and YouTube’s growth strategy might become even more pronounced.

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2025-07-25 00:18