IAB Europe and Microsoft reveal widespread AI adoption in digital advertising

According to a new study released by the Interactive Advertising Bureau (IAB) Europe and Microsoft Advertising, 91% of professionals in the digital advertising industry have either fully embraced or experimented with generative AI technologies. The research, conducted in April 2024, sheds light on the rapid adoption of AI tools and the challenges faced by organizations in this evolving landscape.

The study uncovered a significant disparity between AI adoption and understanding within the industry:

• Only 38% of respondents felt confident in their ability to define AI and provide examples of its applications
• 31% reported they could speak confidently about AI and its uses
• A staggering 89% expressed a desire for more education and training on AI from industry associations like IAB

James Murray, Product Marketing Lead for Generative AI products at Microsoft Advertising, presented these findings during an IAB Europe event on July 17, 2024. Murray emphasized the importance of addressing the knowledge gap to ensure responsible and effective use of AI technologies.

Historical context of AI development

Murray provided a brief timeline of AI evolution:

• 1956: Emergence of Artificial Intelligence as a field of computer science
• 1997: Introduction of Machine Learning, enabling machines to learn from existing data
• 2017: Rise of Deep Learning, utilizing neural networks for data processing
• 2021: Advent of Generative AI, capable of creating new content from prompts or existing data

Current AI landscape: predictive vs. generative

The research distinguishes between two main categories of AI:

1. Predictive AI: Focuses on forecasting and analysis based on historical data
   • Example: Automated bidding strategies in digital advertising
2. Generative AI: Creates new content from prompts or existing information
   • Example: Generating ad copy or visual content for campaigns

Widespread adoption and use cases

The study revealed that 38% of respondents reported AI becoming embedded in their daily work lives. Top use cases for AI in digital advertising include:

• Developing content
• Creating new creative assets
• Building business cases
• Coding
• Strategic planning

Motivations for AI adoption

Key reasons cited for embracing AI technologies:

1. Operational efficiencies
2. Time savings
3. Process optimization
4. Gaining competitive advantage

Challenges and concerns

The research also highlighted several challenges faced by organizations:

• 78% of AI users are bringing their own AI tools to work, potentially outside of official company policies
• 52% of AI users are reluctant to admit using AI for important tasks
• 53% worry that using AI for crucial work may make them appear replaceable

Shifting perspectives: "Me + AI" vs. "Me vs. AI"

Murray emphasized the importance of viewing AI as an augmentation of human capabilities rather than a replacement:

"The goal is not how AI can replace human capability, it's how it can augment and add to human capability to make us all better," Murray stated.

Practical applications

Examples of AI applications in digital advertising include:

• Rewriting product summaries for different audiences
• Adjusting email tone
• Conducting SWOT analyses
• Addressing customer challenges in specific industries

Key takeaways

1. Generative AI is shifting the industry from predictive analysis to augmented creativity and productivity
2. 91% of professionals have used or experimented with generative AI, indicating its growing importance
3. AI should be viewed as a tool to amplify human capabilities, not replace them

The full research report is available for download on the IAB Europe website. As the digital advertising industry continues to grapple with the implications of AI, this study provides valuable insights into the current state of adoption and the need for ongoing education and training initiatives.