AI in advertising: balancing innovation with trust

The HY 2025 Adspend Report makes it clear that AI is no longer on the horizon, it is here and already shaping how digital advertising operates. From campaign creation to cross-channel targeting, AI is accelerating both creativity and efficiency, and it is set to be one of the defining forces in the years ahead. 

We are already seeing practical applications that are changing the way advertisers work. Generative tools are enabling SMEs to create ad content without needing agency support. Self-serve platforms are making audience building simpler and more privacy-compliant. Dynamic creative optimisation is bringing new levels of personalisation to Retail Media and audio, and agentic AI is opening the door to smarter cross-channel planning. In some cases, campaign launch times have been cut to just 24 hours. 

But alongside the opportunity comes responsibility. Over half of industry leaders – 56% of respondents – identified AI and automation as a top challenge this year. Concerns range from transparency in data usage, to homogenised creative output, to the long-term impact on talent and innovation. The industry is united in seeing AI as a growth driver, but equally in recognising the risks if it is deployed without the right guardrails. 

As digital ad spend moves towards £45bn by 2026, the challenge is not whether we adopt AI, but how we adopt it. The winners will be those who can unlock its potential while keeping trust, creativity and human judgement at the heart of their strategies. Because in the end, it is that balance between technology and human insight that ensures advertising remains both effective and authentic. 

Read the full HY 2025 Adspend Report here.