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Two Types Of AI In Advertising

The Future of AI in Advertising: A Dual Approach

Introduction

In a recent episode of the AdExchanger Talks, managing editor Allison Schiff sat down with Paul Longo, Microsoft’s General Manager of AI in ads, to explore the dual roles of artificial intelligence in the world of advertising. AI is not only changing how ads are created but is also revolutionizing agentic experiences within digital platforms. As the advertising sector heads into 2026, understanding these shifts is crucial for industry stakeholders aiming to stay ahead in their strategies.

Harnessing AI for Ad Creation

AI technology has become an indispensable tool in creating more effective and targeted advertising campaigns. By leveraging AI, advertisers can optimize their content creation process, ensuring that each ad reaches its ideal audience. This level of precision in targeting is reshaping how businesses approach their marketing strategies, focusing on personalization and consumers’ specific needs.

The Rise of Agentic AI Experiences

Beyond content creation, AI is significantly enhancing agentic experiences—digital interactions where AI plays a proactive role in engaging users. This innovation empowers platforms to offer more immersive and interactive forms of advertising. As Paul Longo highlights, these advancements are not just theoretical but are being actively implemented, paving the way for richer consumer experiences.

Creative Experimentation with AI

Interestingly, Paul Longo’s background as a screenwriter sheds light on the creative potential that AI holds. By using AI tools, creatives are experimenting with storytelling and production techniques that were previously beyond reach. This convergence of technology and creativity is sparking a transformation in how narratives are crafted and consumed.

Key Insights

  • What roles do AI play in advertising today? AI facilitates both ad creation and enhances user engagement through agentic experiences.
  • Why is it important for companies to adopt AI? Companies can achieve better targeting, create personalized experiences, and stay competitive.
  • How might AI change the advertising landscape by 2026? AI is expected to lead to more interactive and personalized consumer engagements.

Conclusion

As we approach the end of 2025, this insightful discussion serves as a guide for advertisers looking to harness AI’s full potential. With AI poised to redefine the advertising landscape significantly, companies must embrace these technologies to remain competitive and cater to evolving consumer preferences.


Source: https://www.adexchanger.com/the-big-story/the-big-story-two-types-of-ai-in-advertising/