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AI adoption accelerates among advertisers

AI adoption accelerates among advertisers

The proportion of advertisers using generative AI has more than quadrupled in just over a year, according to a survey conducted by Isba of its members.

In July, 41% of advertisers reported at least one current gen-AI use case, compared with 9% in April 2024.

Alongside adoption of the technology, the advertiser trade body’s Gen AI Survey found that the majority (58%) now have gen-AI policies in place, with another 19% in the process of developing them.

For most Isba members (62%), efficiency — defined as saving time and money — was considered the key element of their gen-AI strategy. In comparison, just one-third (34%) of respondents said their AI strategy was driven by a desire for improved effectiveness.

That said, 46% reported having not yet started training in AI skills, highlighting a potential gap between usage and understanding for a considerable portion of brands.

Elsewhere, gen AI is also affecting how advertisers are working with agencies. More than one-third (37%) of respondents said they are currently in the process of updating their agency contracts to include terminology relating to gen AI. Marketers report updating their agency contracts to include gen AI terms and their expectation to work more with agencies.

Lorna East, head of agency services at Isba, said the survey results show advertisers are “innovating at pace, with great responsibility”.

“We have a real opportunity to shape the future of how we use Gen AI, ensuring we have the right skills and guidelines in place is an essential next step,” added Pete Markey, president of Isba and former Boots UK chief marketing officer.

In November 2023, Isba developed 12 guiding principles for use of gen AI in advertising along with its agency trade body counterpart, the IPA.

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