Artificial intelligence is on the verge of transforming the advertising industry at its core, yet the pace of adoption remains slower than expected. This is the key takeaway from the Interactive Advertising Bureau’s (IAB) newly released report, State of Data 2025: The Now, The Near, and The Next Evolution of AI for Media Campaigns. The report marks the industry’s first attempt to benchmark AI usage, adoption trends, challenges, and opportunities throughout the media campaign lifecycle.
For years, AI has quietly powered tasks like yield management, automation, and campaign optimization. However, the rise of generative and agent-driven AI is set to reshape the digital media landscape entirely. According to IAB CEO David Cohen, the next wave of AI will influence every stage of media campaigns — from planning to creative development. “The way agencies, brands, platforms, and publishers work together will need a complete rethink,” Cohen emphasized. “It’s a rare moment of both immense opportunity and challenge.”
AI Adoption Remains Slow but Steady Progress is Expected
Developed in collaboration with BWG Global and Transparent Partners, the IAB study surveyed over 500 industry experts across agencies, brands, and publishers. The findings paint a sobering picture of current AI adoption levels. Only 30% of respondents have fully integrated AI across their media campaign processes, with agencies and publishers leading the way in scaling these technologies. In comparison, brands remain hesitant and lag behind in implementation.
Still, the outlook isn’t entirely bleak. Among those yet to fully embrace AI, half expect to catch up by 2026. But a major hurdle looms large — nearly 50% of industry players admit they lack a strategic roadmap for AI integration.
“The industry is barely scratching the surface of AI’s current capabilities,” said Angelina Eng, Vice President of Measurement, Addressability & Data Center at IAB. “AI can already create media plans, segment audiences, pick partners, forecast results, and even generate synthetic data to enhance marketing models and sales attribution.”
Eng warns that companies slow to act face the real risk of falling behind as AI rapidly advances. “This is a moment of acceleration. Those without clear roadmaps or plans for full-scale AI adoption will struggle to keep pace.”
Data Quality and Transparency Emerge as Top Concerns
Interestingly, fears around job security rank low on the list of barriers, with just 37% citing it as a worry. Instead, the study highlights three critical challenges stalling progress: data quality, data protection, and fragmented tools across platforms.
The issue of transparency is equally troubling. Half of surveyed brands say they lack visibility into how their agencies or publishing partners use AI on their behalf. Meanwhile, agencies express concern over brands potentially building in-house AI capabilities, threatening long-standing partnerships.
Existing Solutions Are Underutilized Across the Industry
Although the study explored 18 different solutions — including AI-specific training, defined key performance indicators (KPIs), workflow assessments, and governance boards — adoption rates remain low. At best, only 49% of respondents are using or planning to implement any one of these practices.
Eng stresses that the way forward requires a phased approach. “Agencies, brands, and publishers must first strengthen data quality and security. Next, they need to invest in training, align on standards, and prioritize the most impactful use cases. Without these steps, achieving full AI integration will remain out of reach.”
She adds, “The gap is growing. AI capabilities are evolving faster than most organizations can keep up. It’s clear — the time to act is now.”
