US ad spend growth will grow a total of 11% in 2025, excluding political spending, per an updated Madison & Wall forecast cited by Mediapost. The figure is well above Madison & Wall’s previous estimate of 3.6% growth and follows 13% YoY growth in Q3. Even as total media ad spending continues to grow, growth doesn’t entirely negate the overall climate of uncertainty that will undoubtedly affect the ad industry in the year ahead. Slowing growth expected from Madison & Wall in 2026 and ongoing economic headwinds indicate that advertisers are still operating in an era of caution.
Retailers experimenting with agentic AI are doing so with commercial urgency, not curiosity. In an EMARKETER interview, Criteo’s Michael Greene said retailers now see onsite AI as “mission critical” for owning the shopping journey—especially as consumers increasingly use chat-based tools for early discovery. Generic LLMs lack real retail signals like inventory, regional availability, and nuanced category expertise, making proprietary data the retailer’s strongest edge. With Gen Z already leaning heavily on AI for purchase research, retailers must build systems that deliver more relevant, trustworthy guidance than general chat interfaces. The mandate is clear: build AI that improves baskets, conversion, and shopper retention.
Instacart has become the first grocery partner to launch a dedicated app within ChatGPT, enabling users to shop by prompting the assistant and then building a cart powered by Instacart’s catalog and OpenAI models. After signing in, customers can review selections and pay securely via Instant Checkout, with orders fulfilled through Instacart’s network. The move reinforces Instacart’s leadership in US grocery delivery and gives it an early chance to shape AI-enabled shopping behavior. If consumers embrace the feature, its ability to learn preferences and streamline reorders could meaningfully reduce friction and nudge more shoppers toward online grocery buying.
Personalized AI is no longer a nice-to-have feature—it’s a driver of adoption that inspires trust in the efficacy of AI solutions. Nine in 10 Gen Z and millennial leaders would be more inclined to use AI at work if responses were personalized, per a survey from The Harris Poll commissioned by Google Workspace. CMOs should ensure AI tools on deck can learn style and brand voice and deliver outputs that are aligned with employees’ goals and tasks. Encourage employees to experiment with custom GPTs and Google Gems to develop role-specific tools that can follow workflows across the organization.
Meta acquired AI wearables startup Limitless as part of an effort to accelerate development of AI-enabled devices. Limitless’ main product is an AI-powered pendant that records, transcribes, and summarizes users’ conversations. Acquiring Limitless is likely less about the pendant itself and more about getting access to the startup’s technology. Meta could integrate Limitless’ Rewind software—which can compress over 10 GB of data into a 3 MB file, per 9to5Mac—into its glasses to maximize storage. The winners in the AI wearables category could be those that balance hardware innovation with the privacy challenges that come with always-on intelligence.
Gap’s new AI chatbot was quickly coaxed into discussing intimacy products and other off-limits topics after launch, revealing a misconfiguration in the guardrails set by its AI partner Sierra, according to The Information. Sierra said a bad actor attempted to jailbreak more than a dozen client agents, and Gap’s was the only one that slipped past detection due to the setup error, which has since been fixed. The incident underscores how easily brand safety can be compromised when safeguards aren’t airtight, highlighting the need for companies to rigorously vet vendors and ensure robust protections before deploying AI tools.
AI isn’t replacing search—it’s moving earlier in the journey. OpenAI data shows only about 2% of ChatGPT prompts mention purchasable items, yet product suggestions appear in nearly one-third of prompts unrelated to shopping. For health and productivity queries, those rates jump above 40%. Meanwhile, AI minutes have quadrupled year over year while Google search usage remains slightly up, meaning AI is adding a new discovery layer, not cannibalizing intent-based search. For marketers, this creates a new upstream battleground where LLMs shape category awareness before comparison shopping begins. Brands must map the non-shopping conversations where their products naturally surface.
Medicare plans to pay health tech companies for wearables, apps, and telehealth technology that improves patient outcomes via a new pilot program aimed to begin in July 2026. The government’s willingness to pay for digital health solutions signals a meaningful shift toward making these tools part of standard clinical care. But health tech makers need to prove their tools improve patient outcomes to make it into the pilot program.
The New York Times filed a lawsuit against AI startup Perplexity on Friday, adding to the more than 40 current court cases between AI companies and copyright holders. Lawsuits like The Times’ underscore how AI is impacting the overall health and future of the digital advertising ecosystem—requiring advertisers to rethink traditional strategies.
31% of US SMB marketers and business owners use AI-driven design or layout recommendations to optimize landing pages, according to a June 2025 survey from Ascend2 and Unbounce.
On today’s podcast episode, we discuss how AI has already changed search, whether Google is in a better or worse position today because of AI’s rapid rise, and how AI will transform search in the next 6–12 months. Join Senior Director of Podcasts and host Marcus Johnson, along with Principal Analyst Nate Elliot and Analyst Jacob Bourne. Listen everywhere, and watch on YouTube and Spotify.
61% of Gen Z shoppers used AI tools to help with a purchase in the last year, according to a September 2025 survey from PayPal.
WPP, once the top advertising group globally, will be retired from the FTSE 100 after almost 30 years as its market value has fallen dramatically in recent years. Removal from the FTSE 100 and a plummeting market value indicates that WPP’s struggles are deep-rooted and unlikely to vanish in the near future. For advertisers, the current imperative is to rethink partnerships, explore alternatives, and increase diligence.
Google is leaning hard into hyper-personalization as its key advantage in AI, and its secret weapon is decades of user data across Gmail, Maps, Photos, Chrome, YouTube, and Nest, per TechCrunch. Google Search vice president Robby Stein says advice-seeking queries are rising, and subjective questions benefit most from AI that “knows you.” Discovery is shifting from keyword inputs to content-rich multimodal signals, and brands can anticipate this by treating Gemini as one channel in a broader mix.
Despite recent rumors and leaks, ChatGPT doesn’t run any ads today, not even for free users—but a viral Peloton “recommendation” sparked confusion and backlash while offering a possible preview of how OpenAI could eventually weave advertising into ChatGPT. The incident coincided with reports that OpenAI has been testing ad placements in its Android beta. The recent leaks, rumors, and glitches give advertisers—and competitors—insights on how ads are likely to appear in ChatGPT’s interface and competing AI chatbots. Understanding the context of AI chats and finding non-intrusive placements could require an entirely different toolset than existing ad models.
Microsoft is lowering its expectations for enterprise AI revenues as customer spending proves more cautious than anticipated. It reduced its sales quotas for AI software after many reps missed sales growth goals for the fiscal year that ended in June, per The Information. The problem could stem from clients’ challenges in measuring ROI from AI initiatives and determining savings from automating tasks. Competition to prove product value is intensifying, and Microsoft’s softening expectations for sales suggest that AI isn’t a guaranteed revenue engine. This lowered forecast marks both cautious customer spending and a shift toward value-driven AI adoption over experimentation.
Svedka is planning an AI-forward ad for the 2026 Super Bowl as brands continue to test consumers’ appetite for AI-powered ad experiences. The alcohol company will use AI to portray its previously retired “Fembot” robot mascot, which the brand dropped 12 years ago, per The Wall Street Journal. Svedka’s and Coca-Cola’s AI-powered campaigns mark how quickly major brands are moving into AI despite mixed reactions to earlier tests. A Super Bowl ad is a high-stakes, high-cost, and high-scrutiny moment, and using AI in that space suggests brands believe consumer sentiment is turning in their favor.
Marketing professionals see AI leading to several shifts in consumer behavior that will greatly impact the fundamentals of digital advertising in the next 2 to 3 years, per a Funnel and Ravn Research study of in-house marketers and agency professionals. As AI reshapes digital and search advertising, the brands that thrive will be those who seize the opportunities presented by AI-driven changes.
The FDA is introducing agentic AI to help its drug reviewers, investigators, and scientists carry out more complex tasks and develop AI-driven workflows. Its move into agentic AI signals that AI-driven review is becoming a regulatory norm.