Avataar will be going up against tech giants Google and Amazon with its AI-generated video tool. 

Launched on Monday (6 January) and titled Velocity, the feature is designed to create video clips by lifting information directly from a product link.

According to the company, Velocity can be used to create clips for products that have not been allocated their own video creation budget and it aims to drive better conversion rates for these products through informative AI-generated videos.

Speaking to TechCrunch, Avataar’s Founder, Sravanth Aluru, said: “We could cover entire catalogues and have videos created for all items in them through Velocity. 

“This would improve customer experience and also drive better conversion through motion and storytelling around the product.”

Avataar was founded in 2015 and initially focused on creating interactive experiences through AI-powered imagery and 3D models before now switching focus to using AI to create videos for brands.

The company began commercially testing its AI-powered video creation tool with clients in February 2024, however, it still had to involve people to help create the videos. It then began testing the full-automated Velocity tool in September 2024.

So far, Velocity has been used by companies such as HP, Victoria’s Secret and Lowe’s to generate various product videos.

Competing against tech giants

Avataar’s Velocity tool will be competing against the likes of Amazon and Google, which are also experimenting with AI-powered video tools for ads.

In September at its Accelerate conference, Amazon launched an AI-powered video generator – which is currently in beta for select US advertisers – that turns a product image into a video that showcases that product. 

Meanwhile, earlier in the year, Google unveiled Veo, an AI model that can create video clips based on a text prompt.