Early in 2025, a study released by the Interactive Advertising Bureau (IAB) revealed that while the use of Artificial Intelligence (AI) in the advertising industry is increasing, only 30% of advertising professionals have implemented AI technology across the entire media advertising cycle. The study found that agencies and brands primarily use AI for target audience identification and segmentation, while publishers focus on AI-powered ad inventory forecasting and demand analysis.
The study highlighted two major barriers to AI adoption in the advertising industry. One is the complexity of setup and maintenance, cited as a significant concern by 62% of respondents. The other is data security risk, with many professionals expressing concerns about user privacy protection in AI applications.
Despite these challenges, agencies and publishers are accelerating AI adoption, which should serve as a wake-up call for brands. In an increasingly competitive market, brands need to assess their own AI maturity. Specifically, it's crucial to benchmark against partners and competitors who are proactively leveraging AI to optimize ad spending and improve effectiveness.
This study was conducted jointly by the IAB, BWG Strategy, and Transparent Partners, and involved 529 US advertising professionals from brands, agencies, and publishers. The results suggest that AI adoption in advertising will increase with technological advancements, but overcoming existing technical and security challenges is crucial to fully realizing AI's potential.
