REI Blames Meta AI Tool After Two-Handlebars Bike Ad Backlash

REI Co-op faced backlash this week after an Instagram ad for cycling gear featured a bicycle with two sets of handlebars. The outdoor retailer said the image was generated by a Meta AI advertising tool.

The ad, which promoted REI's bike selection, drew comments from users who spotted the error. REI posted that the “AI-generated imagery missed the mark” and said the company would review its use of the tool. It did not say whether the ad would be pulled.

Meta Platforms Inc. offers AI-powered ad creation features across Instagram and Facebook. Advertisers can generate background images and product variations from text prompts. The REI incident is the latest example of generative AI producing visual mistakes in commercial content. Earlier this year, other brands reported similar errors from Meta’s tool, including distorted objects and nonsensical text, according to industry newsletters.

REI is a privately held cooperative, so the blunder has no direct share price impact. For investors in Meta (META stock page), the episode shows the quality-control risks embedded in a product the company is pushing as a growth driver for ad revenue. Meta has not commented on the REI incident. The company reported last quarter that AI-powered ad tools are seeing growing adoption among advertisers.

The co-op’s review of its generative AI workflow may lead to tighter prompt controls or human oversight before publication. No timeline for that review was given.