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AdTech and AI: The Good, the Bad, and the Automated

By July 5, 2023July 12th, 2023News & Updates 17 Min Read

What AI can (and can’t) do for AdTech

Move over, sliced bread!

Artificial intelligence (AI) has made significant strides in recent years, and it’s no surprise that the AdTech industry has taken notice. Advertisers are using AI to optimize their campaigns, target specific audiences, and even create ad content. But with great power comes great responsibility, and it’s essential to understand what AI can and can’t do for AdTech.

AI robot with cowboy hat

The Good

One of the biggest benefits of AI in AdTech is its ability to analyze vast amounts of data quickly and accurately. This means that AI can help advertisers identify patterns and trends that might not be immediately apparent to human analysts. With this information, advertisers can optimize their campaigns for maximum effectiveness and ROI.

AI can also help advertisers personalize their ads to specific audiences. By analyzing data about a user’s behavior, preferences, and demographics, AI algorithms can create ads that are more likely to resonate with the user. This can lead to higher engagement rates and more conversions. 

Finally, AI can help advertisers automate many of the tedious and time-consuming tasks associated with AdTech. For example, AI algorithms can automatically bid on ad placements, adjust campaign settings based on performance data, and even create ad content.

The Bad

Despite its many benefits, AI isn’t a panacea for AdTech. We must acknowledge its limitations and recognize the crucial role of human oversight. Without it, the potential for bias, limited creativity, and knowledge gaps becomes significant. AI-generated ad copy or campaigns may struggle to match the emotional impact and creative flair that human-made content does. Moreover, AI, like ChatGPT, operates within a limited space of knowledge. While 2021 isn’t ages ago, the rapidly evolving AdTech landscape can render outdated observations and introduce inaccuracies. 

The biggest challenge is the potential for bias. Biased training data can propagate bias within the AI algorithms, resulting in unfair and discriminatory ad targeting. These limitations underscore the indispensable need for human oversight. Human expertise, critical judgment, and understanding are essential in ensuring that content creation remains ethical, accurate, and captivating, catering to diverse audiences. By harnessing the strengths of AI while incorporating human insights and oversights, we can strike the right balance. 

The Automated

Perhaps the biggest benefit of AI in AdTech is its ability to automate many of the tasks that advertisers would otherwise need to do manually. This includes everything from bid management to ad content creation. By automating these tasks, advertisers can save time and resources, allowing them to focus on higher-level strategic decisions.

However, there are risks associated with automation as well. If an advertiser relies too heavily on AI to make decisions, they might miss out on valuable insights that can only be gleaned through human analysis. Additionally, if an algorithm goes awry, it can cause significant damage to a campaign or even an entire brand.

At this point, you might be wondering what other questions you have about AI and AdTech. To help you out, I’m going to ask my friend ChatGPT for some quick answers.

Me: “Hey ChatGPT, can AI replace humans in AdTech?”

ChatGPT: “Well, I don’t know about you, but I don’t think I could write a catchy jingle or come up with a clever tagline. So for now, I think we still need human creativity in AdTech.”

Me: “Fair enough. Can AI tell me what my target audience is thinking?”

ChatGPT: “Hmm, let me check my data… Yes, they’re thinking that they want more personalized and relevant ads. But remember, AI can only work with the data it has, so it’s still important to conduct market research and stay up-to-date on trends.”

Me: “Got it. Final question: can AI predict the future of AdTech?”

ChatGPT: “As an AI language model, I’m not in the business of making predictions. But I can tell you that AdTech will continue to evolve and adapt to changing consumer behaviors and technological advancements. And AI will likely play a big role in that evolution.”

Consumer Trust and AI Authenticity

In every transaction, whether we consciously realize it or not, we have an innate desire to feel good about the purchases we make. We actively seek trust and authenticity not just in the clothes we wear, the food we eat, or the shoes we walk in every day, but in every aspect of our consumer experiences. These interconnected factors hold immense significance, shaping the relationship between consumers and brands in a profound and tangible way. Now, let’s delve into this connection and explore the pivotal role that AI will play in shaping the future of AdTech consumer-brand relationships.

Building Trust

Trust forms the very foundation of every healthy and lasting relationship, and this holds true for the dynamic world of AdTech as well. To build trust, transparent practices, relevant ads, and consumer control are paramount. Personalized ads, powered by AI algorithms, play a pivotal role in cultivating trust, while placing a high priority on data protection serves to fortify it even more.

The Quest for Authenticity

Consumers crave genuine experiences and connections. Authenticity, in this context, lies in organic, relatable content. Brands that share compelling stories, embrace transparency, and engage in meaningful conversations with consumers cultivate a deeper sense of authenticity. 

AI-Enhanced Authenticity

AI empowers brands to analyze consumer data, further enabling brands to tailor strategies for enhanced authenticity and relevance. Companies can use AI to help identify pain points, deliver personalized recommendations, and create content that fosters stronger connections and more impactful experiences. 

Transparency and Consent

Championing transparent information about data practices and providing opt-out options  is essential for long lasting consumer-brand relationships. These practices empower consumers by giving them back control of their data while cultivating trust as a brand that prioritizes transparency and consent.

AI Isn’t Taking Over…Yet.

AI has the potential to revolutionize AdTech, but it’s important to understand its limitations as well as its capabilities. By using AI to analyze data, personalize ads, and automate tasks, advertisers can achieve greater efficiency and effectiveness in their campaigns. However, it’s crucial to ensure that AI algorithms are trained on unbiased data and that they are used in conjunction with human analysis and creativity. With these precautions in mind, advertisers can leverage AI to achieve their AdTech goals while minimizing the risks associated with automation.

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