AI UGC market up 69% in 2025

Why it matters

Tribune India reported on May 26 that the user-generated content platform market reached ₹6.31 lakh crore in 2025, up 69% from a year earlier, as brands increased spending on AI tools that produce creator-style videos at scale. The report said companies are using AI video systems to make ads and testimonials that resemble user-made clips, a format marketers have favored for its lower production style and higher perceived authenticity. ANI distributed the same report on May 26, describing brands’ push for “authentic content for scale.” ### What exactly is growing here? The 69% figure in the Tribune India report refers to the UGC platform market, not a single app or agency. Tribune said the market was valued at ₹6.31 lakh crore in 2025 and projected it would exceed ₹35.69 lakh crore by 2031. Fortune Business Insights, in a separate market report published this month, described the UGC platform market as software and services that help brands gather, manage and publish user-generated material across digital channels. That broader category includes the infrastructure brands use to source, organize and distribute creator-style content, whether it comes from customers, paid creators or AI-assisted production systems. (tribuneindia.com) ### Why are brands shifting toward AI-made UGC-style video? Tribune said brands are turning to AI video generation tools because they can produce large volumes of clips that look like customer testimonials, product demos or creator endorsements without the time and coordination required for conventional creator campaigns. The report said the shift is tied to demand for more “authentic content for scale.” (fortunebusinessinsights.com) The same article put a price gap on that shift. Tribune said traditional creator-sourced UGC typically costs ₹12,500 to ₹41,500 per video, while AI alternatives can deliver similar output for less than ₹1,700, or as much as 96% cheaper. Those figures help explain why brands running paid social campaigns would test AI-generated volume first, especially when they need multiple hooks, formats and audience variants. (tribuneindia.com) ### Does AI UGC replace human creators? The current market evidence points more to substitution in some jobs than full replacement of the format. Tribune’s report framed AI UGC as a way to replicate the look and pacing of creator content at lower cost, not as a reinvention of the ad format itself. Brands still want videos that appear conversational, native to social feeds and close to customer speech. (tribuneindia.com) JoinBrands, a creator marketplace, said in a May 10 post that the demand for authentic content remains central even as AI-generated content expands. That is a commercial claim from an industry participant, but it aligns with the continued use of UGC aesthetics rather than a return to polished brand advertising. ### What pressure does that put on local studios and agencies? (tribuneindia.com) The immediate pressure is on pricing and volume. If a brand can buy dozens of AI-generated testimonial-style clips for the cost of a small creator shoot, local studios that sell editing or generic UGC packages face a cheaper benchmark almost overnight. Tribune’s pricing comparison makes that pressure explicit. (joinbrands.com) The remaining edge for local operators is harder to automate: filming real locations, real staff, real customers and other proof that a business exists in a specific place. That distinction matters most for restaurants, clinics, retailers, service businesses and other local advertisers whose marketing depends on visible trust signals rather than pure content volume. That is an inference from the pricing and format shift described by Tribune and from the broader market definition in Fortune Business Insights. (tribuneindia.com) ### What should readers watch next? The next marker will be whether brands disclose more clearly when creator-style ads are AI-generated and whether platform ad libraries begin to show a larger share of synthetic testimonial formats. Tribune’s report projected the UGC platform market to top ₹35.69 lakh crore by 2031, making future market updates and platform policy changes a concrete place to watch. (tribuneindia.com)

Key numbers

• Tribune India reported on May 26 that brands are adopting AI-powered UGC tools faster as companies seek creator-style video output at scale.
• The article cited a 69% year-over-year rise in the UGC platform market in 2025 and said traditional creator-sourced UGC can cost far more.
• The Tribune India report is available on its business section, with parallel distribution by ANI dated May 26.
• Tribune India reported on May 26 that the user-generated content platform market reached ₹6.31 lakh crore in 2025, up 69% from a year earlier, as brands increased spending on AI tools that produce creator-style videos at scale.

What happens next

• Tribune India reported on May 26 that the user-generated content platform market reached ₹6.31 lakh crore in 2025, up 69% from a year earlier, as brands increased spending on AI tools that produce creator-style videos at scale.
• ANI distributed the same report on May 26, describing brands’ push for “authentic content for scale.” What exactly is growing here?
• (tribuneindia.com) JoinBrands, a creator marketplace, said in a May 10 post that the demand for authentic content remains central even as AI-generated content expands.

Sources

• tribuneindia.com
• fortunebusinessinsights.com
• joinbrands.com

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