Artificial Intelligence (AI)-Generated Short-Form Video Script Market Report 2026

The artificial intelligence (AI)-generated short-form video script market size has grown exponentially in recent years. It will grow from $2.11 billion in 2025 to $2.74 billion in 2026 at a compound annual growth rate (CAGR) of 29.9%. The growth in the historic period can be attributed to growth of short-form video platforms, rise in digital marketing spend, increasing creator economy participation, demand for rapid content production, expansion of social media advertising.

The artificial intelligence (AI)-generated short-form video script market size is expected to see exponential growth in the next few years. It will grow to $7.75 billion in 2030 at a compound annual growth rate (CAGR) of 29.7%. The growth in the forecast period can be attributed to advancements in generative ai models, rising demand for personalized marketing, increased adoption by smes, integration with marketing automation platforms, growth of video-first digital strategies. Major trends in the forecast period include hyper-personalized short-form video narratives, platform-specific script optimization, real-time trend-responsive script generation, automated multilingual and localization capabilities, creator economy enablement through ai tools.

The increasing use of digital marketing is expected to drive the growth of the AI-generated short-form video script market. Digital marketing involves promoting products or services through online channels such as search engines, social media, email, and websites to connect with target audiences. Its adoption is rising due to its ability to precisely target audiences, delivering personalized content that enhances engagement and boosts conversion rates compared to traditional marketing methods. AI-generated short-form video scripts support digital marketing by quickly creating engaging, platform-specific content that grabs attention, increases brand visibility, reduces production time and costs, and enables personalized, data-driven storytelling for targeted campaigns. For example, in October 2024, the U.S. Federal Reserve reported that in 2023, advertising revenue from Alphabet/Google, the largest digital ad platform, accounted for 0.85% of U.S. GDP, while Meta/Facebook contributed 0.47%, with digital ads making up around 77% of Alphabet’s revenue and 98% of Meta’s revenue. Thus, the rising adoption of digital marketing is fueling the growth of the AI-generated short-form video script market.

Leading companies in the AI-generated short-form video script market are developing advanced technologies such as AI-generated avatars to produce more engaging and interactive content for a wide range of audiences. These avatars are virtual characters powered by artificial intelligence that mimic human appearance, facial expressions, and speech. They enhance digital content by delivering personalized, interactive experiences in videos, marketing campaigns, and virtual settings. For example, in April 2024, Synthesia Ltd., a UK-based AI company, introduced Expressive AI Avatars capable of conveying human emotions. These avatars use sophisticated models to interpret and display emotions such as happiness, sadness, and anger based on the text scripts they receive. The technology transforms script sentiments into realistic facial expressions, voice tones, and body language, enabling video creation without the need for cameras, actors, or studios. This makes the avatars ideal for applications such as marketing, training, e-learning, and presentations. The system generates short-form videos directly from text, showcasing AI’s ability to automatically create captivating content with lifelike emotional expression.

In March 2025, xAI, a U.S.-based company focused on developing advanced AI technologies to accelerate scientific discovery, acquired Hotshot for an undisclosed sum. This acquisition enhances xAI’s AI-driven video generation capabilities, allowing advanced video models to be integrated into its Grok chatbot, positioning it to compete with OpenAI’s Sora and Google’s Veo 2. Hotshot will leverage xAI’s Colossus computing cluster to scale its text-to-video AI models, marking a strategic move by xAI into multimodal content creation. Hotshot, also based in the U.S., specializes in AI-powered short-form video script generation.

Major companies operating in the artificial intelligence (AI)-generated short-form video script market are Adobe Inc., Jasper AI Inc., Synthesia Ltd., Lightricks, InVideo AI, Copy.ai Inc., Writesonic Inc., Animoto Inc., VEED Limited, Runway AI Inc., Kapwing Inc., Vizard Technologies Inc., Neuroflash GmbH, Elai.io, Wisecut Video Inc., FlexClip, Visla Inc., Pictory Inc., Lumen5 Technologies Inc., Creatify Lab.

North America was the largest region in the artificial intelligence (AI)-generated short-form video script market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI)-generated short-form video script market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (AI)-generated short-form video script market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence (AI)-generated short-form video script market consists of revenues earned by entities by providing services such as artificial intelligence (AI)-powered script generation, script-to-video automation, customization and editing, multi-language and localization, integration and platform support, faceless and avatar-based videos, and flexible monetization models. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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