An AI virtual location is a place generated or rebuilt with artificial intelligence to set a commercial, a product video or event content in, without bringing a crew and the product there. It replaces a real location well when the place is hard to get, far away or out of season; it works less well when people need to interact with the setting for a long time. Here's when it pays off, what you save and where the limits are.
What an AI virtual location is, and what it isn't
It isn't a green screen, and it isn't a 3D render built by hand over weeks. It's an environment generated with AI models from a concept, sometimes from reference photos, into which the product is placed and checked until it matches the real one. It can be a plausible but non-existent place (a penthouse on a lake, a mountain road at dawn) or a setting that recalls a recognisable type of place (a Turin courtyard, a Milan loft).
The difference from a real location is that there's no set to organise: no scouting, permits, closures, weather or travel.
When a virtual location replaces a real one
| Situation | Real location | AI virtual location |
|---|---|---|
| Distant or exotic place | Crew and product travel | No travel |
| A season other than the current one | Wait for it or rebuild it | Generate the season you need |
| Precise light (dawn, golden hour) | Windows of a few minutes, uncertain weather | Light decided at concept stage |
| Several settings for the same product | One set per place | Several scenes in the same workflow |
| People interacting with the setting at length | Natural | Hard to make convincing |
| A live event with an audience | Irreplaceable | Useful only for teasers and before/after material |
The rule is simple: a virtual location works when the place is context, not when it's the lead with people in it.
Permits and logistics: what you save
Filming on public land requires municipal authorisation. In Milan, requests for photo and video shoots go through the one-stop events office (SUEV), with fee exemptions for some production categories (City of Milan source). In Turin and Piedmont, Film Commission Torino Piemonte assists productions with public land occupancy permits, which it describes as free in Turin and with reduced fees across Piedmont (FCTP source).
So the real saving isn't always the permit fee. It's everything else: authorisation lead times, road closures, scouting, rentals, weather, travel, set days. A virtual location removes those steps, along with the weeks of pre-production around them. The full timing comparison is in AI vs traditional production timelines.
A note on recognisable places: in Italy, reproducing cultural heritage for commercial purposes generally requires authorisation and a fee paid to the body in charge of it (Articles 107-108 of the Cultural Heritage Code, Normattiva source). Recreating a famous monument with AI in a commercial isn't automatically outside these rules: that's why we prefer settings that evoke a city without reproducing its protected landmarks.
"The best virtual location is the one nobody questions. Because they're looking at the product."
Realism limits to know
- People interacting with the setting. Hands opening doors, people sitting down, objects being moved: the longer the action, the harder it is to keep consistent.
- Product reflections and materials. Glass, chrome and paint have to reflect the right location. It's where a car or a bottle "detaches" from the background.
- Lettering and signs. Models invent unreadable or wrong text: it has to be checked and fixed.
- Crowds and audiences. Many people moving at once is still one of video models' weak spots.
- Product specs. A car must have the real model's wheels, lights and details; a bottle the exact label. Checking against the real product isn't optional.
The hybrid approach: real product, AI location
Often the best answer is in between. You shoot or photograph the real product in a studio, under controlled light, and place it in an AI-generated location, matching light, reflections and shadows. When the product needs absolute precision, some scenes are done in CGI with Blender. It's the method we use for spots where the product has to be exact and the place has to be beautiful, not necessarily real.
In automotive the logic is the same as in our automotive AI reel: the vehicle must match the real model, the road can be anywhere. For a luxury automotive event in Milan a virtual location doesn't replace the evening, but it can produce teasers, invitations and social content before the venue is set up. More in AI in luxury automotive.
If you're planning a commercial in Italy, see AI commercial production and our AI video agency in Italy; for a spot built for TV, AI TV commercials.
Frequently asked questions
Can you shoot a commercial without a real location?
Yes, if the place is context for the product. AI generates the setting and the real product is placed in it and checked until it matches the original. Scenes with people interacting with the setting at length remain harder.
Do you need permits for a virtual location?
Not for filming on public land, since nothing is shot on site. Watch out for recognisable places though: in Italy, commercial reproduction of cultural heritage generally requires authorisation.
Is an AI location good enough for a TV commercial?
It can be, with strong creative direction and a hybrid approach: the real product shot in a studio and placed in an AI location, with matched light and reflections. Critical points are reflections, lettering, crowds and long interactions.
Can a virtual location work for a luxury automotive event?
It doesn't replace the event, but it's useful for teasers, invitations and social content before the venue is set up. The car must always match the real model.
Do AI locations look fake?
It depends on direction and checking. The weak spots are product reflections, lettering, crowds and long interactions. A hybrid approach, real product in a studio plus an AI location, gives a more solid result.