Coca-Cola is putting out another AI-generated holiday advertisement, its second after an AI ad campaign last year that drew mixed reactions from audiences. While attitudes toward AI in ads are mixed, smaller brands are at a higher risk of receiving negative impacts from creating ads entirely using AI.
Instacart has launched a new suite of AI-powered tools aimed at helping grocers deliver more personalized and efficient shopping experiences both in-store and online. The rollout includes features like Cart Assistant for customized recommendations, Store View for real-time shelf monitoring, and Agentic Analytics for data-driven insights. Instacart’s bet is that the more it can use emerging technologies to simplify life for both grocery shoppers and retailers, the stickier its platform will become.
66% of US banking executives say their leadership team or board has discussed allocating budget or resources to AI, more than triple the share for any other emerging tech, according to July data from Bank Director and Jack Henry & Associates.
Consumers (68%) and senior marketers (75%) expressed an increasingly positive outlook on the possibilities of generative AI this year, according to a September report from Kantar.
ChatGPT now handles more than 2 billion queries daily from 190 million users, per MarTech. The chatbot has transcended novelty and become a decision-stage search companion. Nearly 80% of US ChatGPT users treat it like a search engine, per a new Adobe survey. Influence now hinges on how brands appear within genAI—not just in Google Search results or on social media. This adds another layer of complexity for brand managers while unlocking opportunities for real-time content optimization and risk monitoring.
Reddit COO Jen Wong told EMARKETER that the platform has evolved from explaining itself to advertisers to proving it can deliver results. “We’ve shown Reddit can drive real business outcomes,” she said, noting that nine of fifteen verticals grew ad spend by at least 50% YoY. Wong emphasized discovery as Reddit’s next frontier—especially in underexposed sectors like parenting and sports—and said product improvements will make communities easier to find. With ad revenues projected to climb 46.6% in two years, Reddit’s opportunity is one of scale and visibility, driven by authenticity and high-intent engagement.
From Ulta Beauty’s new marketplace to Gap’s creator platform, here’s what the eight most interesting retailers from October have been up to, as ranked on our “Behind the Numbers” podcast.
Tomorrow’s grocery shoppers will expect AI tools that anticipate their needs, faster checkouts, and consistent pricing across channels. In this new era, convenience and technology will shape behavior, but value and trust will remain the deciding factors.
OpenAI signed a seven-year, $38 billion cloud compute deal with Amazon Web Services (AWS), its first partnership with the cloud market leader. The development effectively ended the startup’s exclusive reliance on Microsoft, its primary backer, per CNBC. OpenAI will use existing AWS data centers, and Amazon will build dedicated infrastructure for OpenAI as part of the ChatGPT maker’s expansion. While hyperscalers like AWS, Microsoft, and Google race to secure workloads, costs for training and inference are expected to decline. For brands, this means reduced outage risks and increased options for deploying AI-driven creative, analytics, and automation systems at scale.
AI is reshaping the future of work at agencies, from reducing junior roles to cutting down on hiring altogether. Nearly all (91%) of US senior agency leaders expect AI to reduce agency headcounts, per Sunup’s AI’s Effect on the Marketing Industry report. Over half (57%) of agencies have slowed or paused entry-level hiring. To maintain value in the AI era, agencies should protect and cultivate talent pipelines and use AI to deepen offerings like audience insights and personalized campaign plans, which automation alone can’t replicate.
When it comes to AI investment, Google CEO Sundar Pichai's mantra that the risk is underspending, not overspending, seems to be holding true at Meta. It forecast roughly $600 billion on AI-related capital expenditure over the next three years, but investors are questioning whether that philosophy has limits. Meta’s heavy focus on AI could aid its ad offerings, especially personalization options and its AI-powered ad suite. At the same time, overspending could lead to uneven focus that leaves other ventures—including its cash-burning Reality Labs and plateauing interest in Facebook—vulnerable.
Meta, Google, and Microsoft are spending at historic rates in the race to secure AI dominance. Each posted record quarterly earnings last week—and warned that even higher capital expenditures are an imperative for growth, per Wired. For marketers, the AI buildout presents both an opportunity and a cautionary tale. As Big Tech chases scale, brands must chase substance—using AI not for hype, but for measurable value today, not in the future. AI’s future isn’t guaranteed by capital—it’s earned through trust, differentiation, and adaptability. Brands that master those traits will thrive no matter how the infrastructure race unfolds.
Retail is on the brink of a digital sea change as agentic commerce slowly makes its way onto consumer-facing platforms.
Walmart unveiled a series of AI-powered tools for its app to help customers with their holiday shopping. The new features, which include an in-store savings function and AI-generated audio summaries, are meant to make Walmart’s app more useful for in-store shoppers and to simplify discovery and purchasing for customers who prefer to transact online. Retailers should follow Walmart’s lead and use AI to make it easier for customers to surface deals and quickly find what they’re looking for, whether in-store or online.
WPP cut its full-year outlook after Q3 organic revenue fell 5.9% to £2.46 billion, its steepest quarterly decline since 2020. New CEO Cindy Rose said the company “hasn’t gone fast enough” to meet client needs and outlined a turnaround focused on AI, operational efficiency, and simplifying its agency network. WPP’s slump reflects broader challenges facing holding groups in the AI era: proving value through speed, integration, and measurable results as brands increasingly turn to self-serve, platform-driven ad solutions.
Healthcare organizations are implementing commercial AI solutions at more than twice the rate (2.2x) of the broader US economy, according to a recent report from Menlo Ventures. Hospitals and health systems dominate AI adoption in healthcare, accounting for 75% of the spending total. The greatest current demand for AI in healthcare is among provider organizations that must improve doctors’ workflows and cut admin waste. AI startups and incumbents will compete by delivering revenue-driving tools that go beyond note transcription and earning physician trust through models that enhance diagnostic accuracy.
Fraudulent streaming is siphoning royalties from human artists, complicating ad targeting for marketers, and leading consumers to listen to AI-generated music without their knowledge. Fraudulent genAI content can degrade users’ streaming experience and make it harder for advertisers to accurately plan campaigns since they may not know what user data is legitimate, Inna Vasilyeva said. With data quality and trust serving as major elements of campaign deployment and optimization, brands must demand transparency from streaming platforms and prioritize verified ad inventory.
Amazon beat expectations in Q3, helped by an extended Prime Day sale, expanded rural access to same- and next-day delivery, and healthy cloud and advertising growth. The company's AI investments are taking center stage as the company looks to improve efficiency, boost engagement, and keep third-party AI agents at bay. From a retail standpoint, Amazon is on firm footing. The retailer’s ability to offer unparalleled convenience, wide selection, and Prime membership perks are enabling it to gain share in an uncertain environment.
A global Azure and 365 outage hours before earnings revealed the fragility of Microsoft's dominance, briefly disrupting apps and websites worldwide. But its latest earnings demonstrated its unmatched lead in enterprise AI. Azure and other cloud services jumped 40%, powering Microsoft Cloud’s 26% revenue surge to $49.1 billion. Despite the hiccup, Microsoft’s results confirmed AI’s full integration into its business model, with Copilot and Azure fueling recurring cloud consumption—and turning productivity into predictable, high-margin growth.