NEW YORK—AI is set to transform the advertising industry, but the industry still has a ways to go in adoption, according to new research from the IAB.
The study is particularly notable because it povides the first-ever industry benchmarks on AI usage, adoption rates, and perceptions as well as challenges, opportunities, and future needs within the media campaign lifecycle.
One major finding is that to date, only 30% of agencies, brands, and publishers have fully integrated AI across the media campaign lifecycle. The data also success that the initial focus of AI usage is clearly on driving efficiency, as nearly twice as many agencies and publishers have fully scaled AI compared to brands.
The new report, “State of Data 2025: The Now, The Near, and The Next Evolution of AI for Media Campaigns” was designed to evaluate market readiness for AI transformation, and created by IAB in partnership with BWG Global and Transparent Partners. It surveyed over 500 subject matter experts across the buy- and sell-sides of the industry.
“While AI has long been used for yield management, optimization, and automation, the explosion of generative and agentic AI solutions will radically alter the entire digital media ecosystem. AI will soon power every aspect of media campaigns, not to mention its impact on the creative process.” said David Cohen, CEO, IAB. “We must fundamentally rethink how agencies, brands, platforms and publishers work — which is both incredibly exciting and challenging at the same time.”
Despite a slow start, the researchers reported that half of those who haven't yet fully integrated AI expect to do it by 2026. But the study also reveals that half the industry lacks a strategic roadmap for AI.
“The industry isn’t taking full advantage of what AI can do now. It can build media plans, generate audience segments, select media partners, forecast performance, and even use synthetic or “fake” data to enhance marketing mix modeling and sales attribution” said Angelina Eng, VP Measurement, Addressability & Data Center, IAB. “This will transform how media campaigns are conceived, executed, and managed from start to finish. It will happen fast, and laggards are at risk of being left behind. This report will help the industry develop the roadmaps they need to leap from AI-assisted workflows to the complete integration that will unlock AI’s full potential.”
In terms of what is holding the industry back, the report offered some interesting conclusions.
Contrary to popular assumptions, job security is the least of the industry’s concerns at just 37%. The industry recognizes that AI requires a strong foundation before it can take on human tasks and realize its potential.
Nearly two-thirds cite the quality of the data being used and produced, the protection of that data, and fragmentation among disparate tools as top barriers for AI adoption.
The study also found that there are fears about transparency. Half of brands worry they don’t have enough transparency about how agency and publishing partners use AI on their behalf, and half of agencies worry about brands bringing their AI capabilities in-house and reducing their reliance on partners.
In another notable finding, the study asked about eighteen different solutions ranging from clear use cases, formal training, defined KPIs specifically for AI solutions, formal assessment of workflows, to governance boards to address concerns and challenges.
The survey found, however, that at most, only 49% are using or planning to use any one of them.
Eng concludes, “The study suggests that agencies, brands, and publishers need to take a phased approach to AI adoption, ensuring that data inputs and outputs are secure and of high quality. They also need to train teams on best practices, collaborate with the industry to develop standards, and prioritize key use cases to establish a strong foundation for full-scale adoption. There is already a lot of catching up to do, and AI capabilities are leaping even further ahead almost daily. There’s no time to waste.”
The report, IAB State of Data 2025: The Now, The Near, and The Next Evolution of AI for Media Campaigns, is available here.
A series of four webinars on this vital subject will begin March 24. To register for the IAB State of Data Webinar: AI in the Media Campaign Lifecycle click here.
In addition, IAB is releasing a companion guide to the report that provides tactical recommendations for integrating AI into day-to-day media planning, activation, and analysis.
