70% of Media Companies Are Not Fully Using AI, IAB Report Reveals

Key Takeaways

• The majority of media companies have not yet fully adopted AI.

• Agencies and publishers lead in AI adoption, while brands lag.

• Worries associated with the complexity of AI and data security are more pronounced than apprehensions of job losses.

AI Adoption in Media: Challenges, Trends, and Future Outlook

The data for AI adoption was collected in 2022 as part of the most recent “State of data” report issued by the Advertising Interactive Bureau (AIB). For 70 per cent of the sampled agencies, businesses and publications, AI is still in the nascent stages of being implemented into its advertising campaigns.

The report demonstrates ways of applying AI, the reasons for not employing it more widely and the steps that firms should take in order to ensure that AI is more effective.

Current State of AI Adoption in Advertising

The use of AI; as analyzed through interviews with more than 500 experts in the field shows adoption is not similar in various categories of media companies.

• 30% of firms report having implemented AI in media strategies.
• Agencies (37%) and Publishers (34%) have had higher levels of AI adoption in comparison to brands (19%).
• Among those who do not use AI, 50% expect to use it by 2026.
• While 85% of organizations employ some form of general AI, a comparatively small number make use of custom AI (45%) or proprietary AI (24%).

An unnamed Senior Vice President from a global brand summarized their hesitation:

“We have been slow to fully implement AI into our day-to-day processes. We are hesitant to fully commit until AI has been normalized within society and has demonstrated the ability to achieve sustained success at scale.”

How AI is Perceived in Media Companies

Companies that have adopted AI report overwhelmingly positive experiences:

• 82% say AI meets or exceeds expectations for improving efficiency, saving time, and reducing costs.

• 75% believe AI significantly enhances media campaign effectiveness.

• 73% find AI tools reliable over time, reinforcing their confidence in AI-driven solutions.

What AI Does Well vs. Where It Falls Short

AI shines in data-intensive processes like:

• Audience segmentation
• Predictive analytics
• Automated media buying and bidding
• Personalization at scale

However, it struggles with tasks requiring human creativity and strategic thinking, such as:

• RFP (Request for Proposal) management
• Campaign setup and strategic planning
• Creative decision-making and messaging tone alignment

This division highlights that while AI can streamline workflows, it still requires human oversight and strategic input to be most effective.

Barriers to AI Adoption in Media

Despite AI’s benefits, many companies hesitate due to four major barriers:

1. The complexity of Implementation & Maintenance (62%) – Many companies lack the technical expertise to set up and maintain AI systems efficiently.

2. Security of Data (62%) – Firms are concerned about how AI processes proprietary customer and business information.
3. Absence of Knowledge and Skill (61%) – There is an alarming gap in appreciating and practising AI.
4. Concerns About Accuracy and Transparency (60%) – Companies are anxious that the processes by which AI makes decisions might not be as logical and reliable as envisaged.

Interestingly, job displacement is not a primary concern, with only 37% of respondents seeing AI as a threat to employment. Instead, the industry views AI as a tool to enhance human capabilities rather than replace jobs.

Unique Challenges for Agencies, Brands & Publishers

Different media sectors face distinct AI adoption challenges:

Publishers:

• 67% struggle with complex AI technology that requires significant expertise.

• 62% cite fragmented AI capabilities, making it hard to implement solutions seamlessly.

Brands:

• 56% lack a clear AI vision or strategy.

• 51% worry about transparency regarding how their marketing partners use AI.

Agencies:

• 61% experience resistance from clients and internal teams reluctant to adopt AI-driven processes.

• Many agencies Still predominantly use traditional campaign management techniques which pose difficulties for AI integration.

It is important to understand the complexities of each sector in order to tailor solutions that address the problem of AI adoption.

Read More: Can Artificial Intelligence(AI) create better Business ideas than Humans?

Looking Ahead: The Future of AI in Media Campaigns

1. AI Adoption is Accelerating

While most companies are still early in their AI journey, adoption is expected to grow rapidly by 2026. Organizations ignoring the use of AI will only watch their more intelligent competitors drive value through automation and analytics.

2. Data & Governance Will Be Key to AI Success

To ensure trustworthy AI adoption, companies must:

• Establish robust data governance frameworks
• Train teams on AI best practices
• Develop clear, measurable AI goals

3. Industry Standards Are Evolving

As AI becomes more integrated into media, the industry must develop:

• Transparency guidelines for how AI-driven decisions are made
• Privacy regulations to protect user data
• Best practices for balancing automation with human input

Businesses involved in setting the criteria will perform the best in the long run in digital advertising.

Final Thoughts

Despite AI’s role in advertising and media growing larger, there is still a challenge in garnering acceptance. A lot of companies are stagnating in comparison to agencies and media, which are much more agile. This is due to apprehension around opacity, data security, and intricacy.

Continuous downfalls aside, AI’s possibilities are endless. To say the least, there will be a shift towards stronger, more effective, and data-centered digital advertising as companies begin to sharpen their AI strategies. In a world that is rapidly transforming, companies that deploy AI today, while watching over ethical and governance issues, stand a chance.