"As Alex Kantrowitz of Big Technology likes to say, what often gets lost in these debates is the nuance - so let's parse the rhetoric from reality. At the extremes, two scenarios could play out: Firstly, in a world where AI agents facilitate critical moments of truth for consumers making decisions about brands, products, and services - and immediately execute transactions - advertising becomes obsolete."
"Advertising becomes the de facto engine that drives decisions, with agents talking to agents (at the direction of humans) and matching the best brands, products, and services to meet a consumer need in the moment. Of course, the most probable outcome is something in the middle, with AI taking on a more prominent role in dictating the purchase funnel and advertising having an impact at multiple stages in the process by influencing both humans and agents. In that sense, AI will replace inefficiency, not advertising."
Hyperbolic headlines claim AI will upend advertising, but the realistic outcome is change rather than wholesale elimination. AI can automate many marketer tasks and remove inefficiencies, shifting responsibilities for agencies, strategists, and creatives while preserving human oversight and strategic direction. Two endpoint scenarios exist: AI agents could execute purchases and render some advertising obsolete, or advertising could remain central while agents match brands to consumer needs. The most likely result blends both, with AI influencing purchase funnels and advertising impacting multiple stages. Ad formats and pricing models may evolve toward more performance-based approaches like CPA.
Read at The Drum
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