AI is rewriting the rules of digital media, advertising, and commerce at breakneck speed. Here’s what players in the digital realm can do to stay relevant.

Ad tech company PubMatic filed a lawsuit Monday against Google for alleged anticompetitive and monopolistic actions in the digital advertising ecosystem. The lawsuit claimed Google took illegal actions that impacted PubMatic and harmed its ability to grow revenues. PubMatic’s lawsuit underscores that structural shifts in ad tech could eventually reshape how advertisers access and value Google’s search inventory and digital ad offerings.

Tariffs and inflation are reshaping retail, pushing shoppers toward value and convenience. Off-price chains gained ground, while housing-linked retailers sought new growth paths in a slowing market.

The news: Apple will reportedly launch an AI-enabled web search tool powered by Google’s Gemini, potentially accelerating long-awaited software improvements and helping Apple enter the AI search race, per Bloomberg. The “answer engine” would be integrated with Siri and could help Apple compete with OpenAI and Perplexity. The feature, internally called World Knowledge Answers, will aggregate information from across the web into AI Overviews-esque summaries. It may eventually be added to Safari and Spotlight. Our take: Apple’s pivot toward external AI partnerships highlights how unready it is to compete head-to-head in foundational AI or search. While a Gemini integration could improve Siri and add powerful search capabilities, it could threaten Apple’s core advantage: total control over the user experience.

The news: AI startup Anthropic raised a staggering $13 billion, tripling its valuation to $183 billion, per CNBC. This momentum is driven by enterprise demand for Claude, Anthropic’s AI assistant, and a rapidly expanding customer base that now tops 300,000 businesses. The company’s annual revenues have also jumped fivefold in 2025 to $5 billion. Our take: Anthropic’s ascent is setting a new standard for AI startups—spurring rivals like Perplexity, Mistral, Intelligent Machines, and Safe Superintelligence to chase scale through aggressive fundraising, not quick exits. The message: In this market, go big or get left behind.

Disney will pay $10 million in a settlement after the Federal Trade Commission alleged that the company collected personal information from children on videos uploaded to YouTube. Disney reportedly uploaded child-directed content to YouTube but did not label the videos as “Made for Kids,” allowing young users to be served targeted ads. Information was collected “without parental notice or consent,” the FTC and Justice Department said. Disney’s payout highlights the risks of targeting younger audiences without adequate safeguards—a challenge that will become even more pressing for advertisers as connected TV matures as a channel.

A federal court stopped short of ordering Google to divest Chrome, instead requiring it to end exclusive search contracts and share some index data with competitors. Judge Amit Mehta’s ruling allows Google to keep paying Apple for default placement but bans exclusivity that kept rivals sidelined. Alphabet shares rose 8% after hours, while Apple gained 4%. Google faces six years of oversight but avoids a structural breakup sought by the DOJ. The bigger challenge looms outside the courtroom: AI tools, Reddit, and TikTok are increasingly siphoning queries, while Google’s top-result clickthrough rates continue to slide.

The news: Use of AI search tools is surging, which could soon spell trouble for Google’s market dominance. The share of consumers using of AI search tools on a daily basis doubled to 29% in August, per HigherVisibility’s 2025 How People Search Today report, up from 14% in February. Meanwhile, Google’s share of general information queries fell from 73% to 67%. Our take: Brands and marketers need to tailor their campaigns and strategies based on user intent. Those looking to attract new shoppers should invest in social media and AI search placements, while those focused on driving traffic for services or capturing high-intent buyers should prioritize Google, especially for initial discovery and location-based queries.

Meta will allow advertisers to exclude specific words or phrases from AI-generated ad copy to protect and align with brand image as it accelerates its AI advertising push. While barriers to adoption remain, Meta’s continued push toward AI ad automation signals where the future of advertising is heading: One where AI will increasingly balance scale with control to give marketers confidence in experimenting with automated campaigns.

Voice assistants will add nearly 30 million US users between 2022 and 2029, fueled by genAI, demographic shifts, and new hardware. Key adoption trends, platform battles, and marketing opportunities are shaping the next era of voice technology.

This is the first installment of our annual “Canada Ad Spending Benchmarks” series, which helps ad buyers and sellers calibrate their spending and revenue mix against the market.

This is the first installment of our “Canada Ad Spending Benchmarks” series, which helps ad buyers and sellers calibrate their spending and revenue mix against the market.

This is the first installment of our “Canada Ad Spending Benchmarks” series, which helps ad buyers and sellers calibrate their spending and revenue mix against the market.

AI search engine Perplexity is facing potential ad business struggles with the departure of its head of advertising Taz Patel. The departure comes as Perplexity eyes new avenues for growth and is faced with legal pressures, per Adweek. Patel’s departure signals a deeper issue with AI search ad monetization, reflecting advertiser hesitation to spend without proven formats, measurement, and ROI, even as AI adoption grows.

Google’s AI-powered video creation platform, Vids, has surpassed 1 million monthly active users, fueled by a new free tier and updates that simplify production. Features include motion effects for product photos, AI transcript editing, Google Meet integrations, and expanded social formats. Paid users retain advanced options like multi-style AI avatars. The adoption highlights rising demand for scalable video workflows—46% of professionals already use AI for images or videos, per EMARKETER. With ideation and personalization ranking as top genAI use cases, Vids is positioning itself as a daily creative tool, potentially joining Docs and Slides in Google’s productivity suite.

Google staff are quietly preparing Ad Manager for life as a potential stand-alone company, per The Information. Employees recently met with ad agencies—an unusual move for a publisher-facing business—as a federal court considers whether Google must divest its ad tech unit. Ad Manager generates an estimated $5 billion in annual revenues but faces declining demand and complaints from streaming players and publishers about slow innovation. With DOJ regulators pressing for a spinoff and rivals like Magnite and PubMatic gaining ground, Google’s outreach underscores how seriously it views the threat of breakup and the need for buyer-side relationships.

If social media is a digital shopping mall, genAI assistants are personal shoppers. As AI gains ground, it could disrupt established social shopping behaviors.

The news: Google Vids rolled out AI avatars, a Veo-powered image-to-video tool, and automatic transcript trimming. Google also announced that features like noise cancellation, custom backgrounds, video filters, and appearance options will be generally available next month. Our take: Brands should: Develop AI content guidelines that set up a clear voice, tone, and message structure to keep scripts brand-consistent. Use AI for speed, not substance. Let the technology handle repetitive tasks, but rely on human input for concepting and storytelling to ensure messages retain emotional nuance—something AI may lack. Pilot, then scale. Test AI video tools on low-risk internal content before expanding to public-facing campaigns.

The news: Google Translate is taking on Duolingo with a slate of new features, including a focus on gamification. An app update includes customizable language lessons based on skill level and is currently available for English, Spanish, and French learners. The lessons track users’ daily progress, similar to Duolingo’s popular “streaks” feature, and can create practice scenarios based on user prompts. Our take: Gamification and interactive features can boost engagement, but AI tools aren’t free to operate. Google may swallow Gemini’s translation costs to keep the service free, a perk that Big Tech’s deep pockets can easily handle and that Duolingo might have a difficult time matching.

Google is enhancing its retail ad offerings with loyalty-driven personalization tools aimed at retention. New features include personalized pricing and shipping perks for loyalty members, a “loyalty mode” in Google Ads’ retention goal to optimize for high-lifetime-value customers, and personalized annotations in Performance Max campaigns. Sephora, an early adopter, reported a 20% lift in click-through rates from loyalty-focused annotations. The launch comes as loyalty ranks high on shoppers’ holiday priorities and as CMOs lean on loyalty programs to bolster first-party data. With Amazon pulling away from Google, the updates position Ads as a retention engine in the retail fight.