Artificial intelligence is working its way into every facet of the US economy, and the payments industry is no exception. While the changes to consumers’ payment behavior will be gradual, providers need to act now, according to our 2026 AI in the Payments Customer Life Cycle report. Providers need to overcome critical issues like data fragmentation, but a well executed AI strategy can help providers maintain control over product discovery and streamline checkout.

"Consumers are conditioned to spend even when they're feeling pressured. Nearly a third of consumers were prepared and ready to take on debt this season to make their holiday purchases,” said our analyst Zak Stambor on a recent episode of “Behind the Numbers.”

In 2026, AI will reshape advertiser workflows and behaviors, while rising video consumption will boost CTV and YouTube.

Social networks will claim close to 32% of US digital ad spending in 2026, as powerful AI systems and improved video monetization help push social past a plateau in time spent among US consumers.

Amazon's recent business moves, examining corporate layoffs, AI-powered shopping features, and new smart glasses technology for delivery workers paint an interesting view of its immediate future and what it could mean for consumers.

Google is quietly exploring how Gemini could support advertising in 2026, per Adweek, even as the company publicly denies any such plans. Agencies say Google has framed potential Gemini ads as high-intent, conversational opportunities for ecommerce brands—signals emerging alongside rapid user growth. Gemini’s global MAUs have climbed roughly 30% since August, and its US footprint is projected to reach 85.7 million users by 2029. If prompt-level signals become targetable, conversational AI could function as a new, more precise form of intent advertising.

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.

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.

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.

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.

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.

Perplexity is relaunching its agentic shopping product for all users next week, just in time for Black Friday, with PayPal as its key partner. The upgraded tool improves shopping intent detection and personalization using users’ past search data, while PayPal merchants will handle transactions and customer service directly. The move intensifies competition with OpenAI, Amazon, and Google, all racing to dominate AI-powered shopping ahead of the holidays. While sales from these tools are expected to remain modest, they offer brands a valuable testing ground for future ecommerce growth driven by generative AI.

Future-proofing against—and capitalizing on—advances in consumer-facing AI will be the overarching theme for retailers in 2026.

Automation, new commerce models, and a fresh generation of consumers are transforming the rules of connection and creativity. Explore the 11 trends shaping the digital future.

Snapchat revenues and users grew in Q3—but the company warned that age verification laws would have unpredictable results on its business. While innovative ad tools and a new partnership with Perplexity could offer more value, stagnant growth and new policies that would restrict access to over 18% of Snapchat’s audience make the social platform a riskier investment than those with ad businesses less reliant on a youth-oriented audience like Instagram.

Amazon is suing Perplexity, seeking to stop its Comet agentic AI browser from shopping on users’ behalf. Amazon alleges that Comet violates its terms of service and degrades the Amazon shopping experience. Perplexity called Amazon's actions a "bully tactic" and argued the company should appreciate agentic AI’s ability to make shopping easier. Amazon’s suit against Perplexity could become an important test case that helps define the limits for agentic AI and the actions retailers can take to protect themselves—at least temporarily—from the intrusion of AI agents. However, it will not stop AI agents from gaining traction in ecommerce.

Generative AI is transforming how consumers discover products and brands earn visibility. As usage of—and trust in—AI grows, brands must rethink how they optimize for discovery and measure success.

Reddit’s Q3 earnings confirmed what advertisers have suspected: the platform’s community-driven ad model can scale profitably. Revenue jumped 68% to $585 million, crushing Wall Street estimates, while EPS of $0.80 easily beat forecasts. Global daily actives climbed 19% to 116 million, though US user growth slowed to 7%, down from 12% last quarter. Data licensing revenue rose 7% as Reddit continues to defend its content from unauthorized AI scraping—a fight central to its long-term strategy. For advertisers, Reddit’s results underscore its strength as a high-intent, performance-focused channel—even as slower domestic user growth raises questions about future expansion.