The recent breakthrough in Generative AI, particularly with Image and Video Generation technology, opens up new opportunities to democratize the AR market and give more power and freedom to the end users. While the prior generation of generative models was, at large, not good enough for a wide variety of use cases, we are now seeing the first indicators that diffusion models have passed the bar for generating rich and diversified content. Recent advancements, such as generation of 3D models in real time, photo animation, and real-time image generation capture the very beginning of what we think is the next big trend in AR: allowing users to create AR effects and modify their look in real time.