IAB Europe reveals AI widespread across digital advertising with 85% adoption rate

IAB Europe released its first comprehensive report on artificial intelligence impact across European digital advertising on September 18, 2025, revealing widespread adoption among companies despite persistent governance challenges. The study surveyed 95 companies across publishers, ad tech firms, agencies, and advertisers throughout multiple European markets.

According to the report, 85% of companies already deploy AI-based tools for marketing purposes. Targeting and content generation lead adoption patterns, with 64% and 61% of respondents respectively using these functions. The study found 74% of companies report at least one campaign function powered by artificial intelligence, demonstrating the technology's integration across digital advertising operations.

"The digital advertising ecosystem is on the hunt for AI opportunities, both in terms of innovative technologies and new contact surfaces with users," stated Dimitris Beis, IAB Europe's Data Analyst & Sustainability Lead. "The findings show that adoption in both predictive and generative use cases is widespread, but barriers such as shortages in expertise still need to be addressed."

Investment patterns indicate strong confidence in AI's growth potential. Three-quarters of respondents plan to maintain or increase their AI investment, with no companies planning reductions. This financial commitment reflects the technology's perceived strategic importance across the ecosystem.

The research methodology involved distributing surveys via email to IAB Europe members and the broader industry between July and August 2025. The organization partnered with National Federations from four major European markets to offer the survey in English, German, French, Italian, and Dutch languages. Most respondents selected German, with 51% completing the survey in that language compared to 44% in English.

Performance benefits vary significantly across market segments. Ad tech firms report the strongest results, with 60% citing KPI improvements from AI adoption. Agencies follow at 48%, while publishers remain more cautious with fewer than one-third reporting CPM increases. This disparity suggests different value propositions across the advertising value chain.

"AI is beginning to reshape the foundations of digital advertising, with the majority of companies already using it in some capacity to finesse targeting and accelerate content generation," commented Wayne Tassie, Group Director NL at DoubleVerify and Chair of IAB Europe's Advertising & Media Committee.

Technical applications span multiple advertising functions beyond targeting and content generation. Companies utilize AI for programmatic optimization, dynamic creative optimization, audience segmentation, reporting and analysis, personalized experiences, media planning, measurement, cross-channel optimization, brand safety checks, and fraud prevention.

The data reveals concerning governance gaps despite widespread adoption. While 68% of companies maintain general internal AI guidelines, only 43% have developed marketing-specific frameworks. Nearly one-fifth of organizations lack formal AI governance entirely, with most responsibility falling to dedicated leads rather than distributed teams or ethics committees.

User data policies for AI training remain divided across the ecosystem. The survey found 43% of companies prohibit using user data for AI model training, while 32% allow internal use only. Seven percent permit third-party training partnerships, and 17% enable both internal and external data usage. These divergent approaches reflect ongoing uncertainty about data governance best practices.

Third-party auditing of AI tools remains limited. Only 16% of companies conduct external assessments of their AI systems, while 33% rely solely on internal evaluation. This audit gap may indicate insufficient oversight mechanisms for AI deployment across digital advertising.

Privacy emerges as the primary concern regarding AI usage in digital advertising campaigns. Brand safety follows closely, including issues related to harmful generated media and intellectual property infringements. Protecting brand identity and consumer perception rank as additional top concerns, while bias and sustainability receive significantly less attention from respondents.

The regulatory landscape presents both challenges and opportunities. Approximately 60% of respondents have assessed or are currently evaluating the EU AI Act's impact on their operations. Among companies that completed assessments, the average compliance readiness score reached 6 out of 10, suggesting moderate preparation levels for upcoming regulatory requirements.

Buy-side guidance remains inconsistent across the industry. Only 32% of companies receive AI guidelines from clients, with most guidance coming from a minority of partners. When provided, buy-side guidelines typically focus on content generation and privacy considerations, followed by compliance requirements, data ownership, and brand safety protocols.

The research identifies significant skills gaps hindering broader AI adoption. Lack of internal expertise and training represents the primary barrier, cited by 45% of respondents. Integration difficulties with existing systems and regulatory uncertainty follow as secondary obstacles, each mentioned by 33% of companies.

Training initiatives attempt to address these knowledge deficits. Sixty percent of companies provide AI education to marketing personnel, while two-thirds express interest in industry association guidelines for AI technology usage. This educational demand suggests opportunities for professional development and standardization efforts.

Future opportunities center on emerging AI platforms and expanded automation. Eighty-one percent of respondents express interest in advertising on consumer-facing AI platforms such as large language model-based chatbots. This enthusiasm indicates potential market expansion as AI interfaces become more prevalent in consumer interactions.

The report findings directly influence IAB Europe's AI Working Group priorities. The group plans to develop a Guide to Prompting for Digital Advertising and collaborate with publishers on content access issues. These initiatives reflect industry needs identified through the survey research.

"IAB Europe's report underscores the urgent need for clear frameworks, ongoing training, and responsible deployment," Tassie added. "By addressing these challenges, AI can become an organic part of daily workflows and unlock a new era of efficiency, creativity, and sustainable growth for our industry."

The study represents the first pan-European examination of AI's impact on digital advertising, providing baseline measurements for future industry analysis. The comprehensive scope across multiple stakeholder types and European markets offers insights into both current adoption patterns and emerging challenges facing the ecosystem.

Looking ahead, the research suggests AI adoption will accelerate despite existing barriers. Investment commitments, performance benefits among early adopters, and strong interest in emerging AI platforms indicate continued growth. However, addressing governance gaps, skills shortages, and regulatory uncertainty remains essential for realizing AI's full potential across European digital advertising.

PPC Land previously reported on related AI developments in the advertising industry, including McKinsey's analysis of 13 frontier technologies driving marketing transformation. IAB Europe's earlier AI whitepaper addressed growth, guardrails, and policy frameworks for artificial intelligence deployment.

The organization's research comes as the digital advertising industry grapples with rapid technological change while maintaining consumer trust and regulatory compliance. Balancing innovation with responsible deployment continues to challenge organizations across the European market.

Timeline

• July-August 2025: IAB Europe conducts survey of 95 companies across European digital advertising markets
• July 7, 2025: IAB Europe releases AI whitepaper on growth, guardrails and policy
• July 15, 2025: IAB releases Digital Video Ad Spend report showing 86% of buyers using AI for video ads
• July 27, 2025: McKinsey analysis reveals 13 frontier technologies with AI attracting $124.3 billion investment
• July 30, 2025: Integral Ad Science receives first Ethical AI Certification from Alliance for Audited Media
• August 25, 2025: Innovid launches AI-powered automation tools for creative optimization
• September 18, 2025: IAB Europe releases first Impact of AI on Digital Advertising Report
• October 2024: IAB Tech Lab releases AI in Advertising Primer providing comprehensive framework

Summary

Who: IAB Europe, the leading European digital advertising industry association, surveyed 95 companies including publishers, ad tech firms, agencies, and advertisers across multiple European markets.

What: Release of the first pan-European Impact Report on AI in Digital Advertising showing 85% adoption rate, strong investment momentum, and significant governance gaps across the ecosystem.

When: September 18, 2025, with survey data collected between July and August 2025 from companies across European markets.

Where: European digital advertising ecosystem, with respondents primarily from Germany (51% of responses in German), along with English, French, Italian, and Dutch markets.

Why: To understand AI adoption patterns, governance challenges, and investment trends as artificial intelligence transforms digital advertising operations while addressing urgent needs for frameworks, training, and responsible deployment.