The $750 Billion AI Advertising Opportunity: How AI is Transforming the Ad Industry

Introduction

In this episode, Kevan Yalowitz, Senior Managing Director of Global Software and Platforms at Accenture, explores how artificial intelligence is revolutionizing the advertising landscape. With extensive experience helping technology and media executives identify and capture growth opportunities, Yalowitz provides valuable insights into AI's transformative impact on creative production, audience targeting, and ROI measurement in advertising—creating what could be a $750 billion opportunity for marketers and platforms alike.

Three Key Ways AI is Transforming Advertising

AI is fundamentally changing advertising in three critical areas. First, it's enabling advertisers to build creative at unprecedented speed and relevance. Second, it's driving better audience segmentation and targeting, resulting in improved ROI. Third, it's making content more relevant to end users, which ultimately attracts better outcomes for advertisers. According to Yalowitz, "It's allowing advertisers to build creative at a speed and relevance to end users faster than they ever had before, which is really powerful."

Creative Production: The Game-Changer for SMBs

While AI impacts all aspects of advertising, Yalowitz emphasizes that creative production represents the most significant transformation. This is particularly true for small and medium-sized businesses that previously lacked the resources to compete with large enterprises. "SMBs do not have the massive capabilities to build great creative that large enterprises and agencies do. So it's an unlock for them. It's an unlock for them to be on par with the best of the best and reach audiences that frankly weren't reachable before," explains Yalowitz. AI tools now embedded in advertising platforms enable these smaller advertisers to produce compelling video content that tells engaging stories—something previously out of reach.

Consumer Attitudes Toward AI-Generated Advertising

Accenture's research reveals surprising consumer comfort with AI-generated content. Approximately 70% of consumers report exposure to generative AI, with half of those using it weekly. Even more surprising, 70% of regular AI users believe AI-generated content can be better than human-created content. However, trust remains a critical factor—disclosure of AI involvement increases consumer trust dramatically, from 25% to 80%. This creates an interesting dynamic for platforms and advertisers as they navigate disclosure requirements while maintaining user experience.

The Blurring Lines of AI Content Creation

The definition of "AI-generated content" remains ambiguous. Most media today incorporates AI at some level—whether for research, editing, thumbnail creation, or other aspects of production. Consumers estimate that roughly 80% of the content they consume has some generative AI component, though Yalowitz suggests wholly AI-created content is far less prevalent. This gray area creates challenges for proper disclosure and consumer understanding.

How AI is Shifting Platform Dynamics and Advertiser Behavior

AI features are now influencing where advertisers place their budgets. Accenture found that 60% of ad buyers are already using generative AI for pla ing and ROI analysis, and many are making platform decisions based on available AI capabilities. Advertisers are also increasingly agile—55% are willing to shift budgets between platforms within a month, with 20% doing so weekly. This creates both opportunity and pressure for advertising platforms to demonstrate AI-driven performance improvements.

The Human Element Remains Critical

Despite enthusiasm for AI, 90% of advertisers still value human interaction in the advertising process. When facing challenges or missing ROI objectives, they want to speak with a person rather than a bot. This creates a balancing act for platforms seeking to automate while maintaining the human touch that advertisers continue to demand.

The Future of AI in Advertising

Looking ahead, Yalowitz predicts two major AI-driven shifts. First, expectations around ROI measurement will dramatically increase as AI provides better visibility into performance. Platforms that fail to evolve their measurement capabilities risk losing advertisers who can now shift budgets more quickly than ever. Second, the fundamental landscape of where advertising appears is transforming with AI-powered search experiences like Google's Gemini and ChatGPT. These new interfaces are reshaping how ad inventory works and will likely represent the largest impact on digital advertising going forward.

Conclusion

As AI continues to transform advertising, marketers face both unprecedented opportunities and evolving challenges. The technology is democratizing creative capabilities, enabling more precise targeting, and reshaping how consumers interact with advertising content. For marketing leaders, understanding these shifts is crucial to capturing value in what promises to be a dramatically different advertising landscape—one where AI capabilities may determine which platforms and brands ultimately succeed.