BNY will integrate Google Gemini Enterprise into Eliza, its in-house AI platform. Gemini will give Eliza deep research tools and let BNY’s employees build AI agents that draw from and act on the bank’s vast libraries of financial data. The haves and have nots of banking’s AI era are coming into relief. The top strata are institutions that have invested heavily in data infrastructure that supports AI’s needs. The next strata are developing dedicated AI strategy but aren’t building as much in-house. Banks in the final strata haven’t found ways to use AI at scale but need to now.

AI enters 2026 facing energy bottlenecks, regulatory battles, and a gap between promise and performance. From market corrections to voice assistant limits and physical AI’s unreadiness, hype is meeting reality.

For social platforms, AI hype is colliding with user fatigue and rising regulations. In the US, they face stalled engagement and tougher rules as people demand more control and more human experiences.

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.

The EU’s regulatory environment will hinder investment in AI-generated ads and agentic commerce in 2026. But TikTok Shop’s expansion will be a catalyst for live commerce.

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.

Canada’s digital economy is entering a faster, more competitive phase in 2026 as ad spending accelerates, short video surges, ecommerce climbs, and AI-driven search reshapes how audiences discover content.

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.

In 2026, dominant platforms like Google and Amazon will flex their muscle against ChatGPT; smaller players like Perplexity and Claude will need to make either product moves or M&A moves; and AI-focused marketers will spend more on YouTube than ads on AI platforms.

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.

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.

Shifts in what consumers watch, how they search, and where they shop are reshaping Latin America’s digital economy—and how brands will reach audiences in 2026. Explore the five trends to watch in the year ahead.

An OpenAI leak indicates that ads are coming to ChatGPT in the near future, according to computer engineer Tibor Blaho. Advertisers should anticipate a future where ads become a core part of the ChatGPT experience and act quickly to test and learn before competitors, but should remain agile in their strategies and remain informed about developments in consumer behavior.

Baidu posted its sharpest revenue decline on record, with ad revenues falling 18% as AI-generated answers replace traditional search clicks. Ernie Bot now powers responses on most Baidu queries, improving user experience but suppressing monetizable activity—a trend management says will weigh on results into Q4. Competitors like Tencent, ByteDance, and PDD are still growing 20% to 30% YoY, suggesting Baidu’s weakness is structural. While the US market is more diversified, Baidu offers a stress test: AI can reshape search faster than monetization evolves. For advertisers, it’s a reminder that even Google and Microsoft must balance innovation with economic stability.

PayPal merchants will now be discoverable within Perplexity, per a press release—right in time for Cyber Five. PayPal merchants stand to benefit from the rising tide of genAI adopters who are reinventing the research, product recommendation, and deal-seeking status quo. Merchants that cater to Gen Z should push to be early adopters of the new update: 47% of Gen Zers already have found a new brand or product through AI, per an Adobe survey. Early mover merchants could get a boost from genAI holiday volume this season.

Google has officially begun showing ads in its AI Mode search engine after announcing a rollout earlier this year. Google’s early testing of ads in AI Mode suggests that AI-driven search placements are beginning to take shape and may ultimately unlock new revenue potential. But with performance still unproven, advertisers should track developments closely while resisting the urge to invest heavily before the format demonstrates clear value.

Google is innovating its AI image generation capabilities for advertisers with the release of “Nano Banana Pro.” The tool enables advanced creative capabilities for ads, enhancing brands’ ability to generate and edit images using AI in Google Ads. AI is set to deliver increasing value to advertisers as creative capabilities evolve and consumers generally grow more comfortable with its role in marketing.

Shoppers across Western Europe are gearing up for a digital-first, deal-focused 2025 holiday season. Brands that better understand shifting consumer behaviors can refine their holiday strategies and capitalize on opportunities for growth.

Q3 was a record-breaking quarter for the three largest ad platforms, but heavy spending on AI is compressing margins and raising questions about how the technology will impact the future of digital advertising.

As retail media moves from side business to centerpiece, big brands are prioritizing measurement and efficiency to cement the channel as a mature budget item. Retail media will grow almost 20% this year (19.4%) to reach $58.79 billion, according to EMARKETER's September 2025 forecast. In recent earnings calls, tech leaders described a channel that is now about solid data, AI-driven relevance, and reshaping how advertisers reach shoppers.