Technologies

Meta Wants AI to Handle Every Part of Ad Creation. Here’s What That Means

This move can impact all Instagram and Facebook subscribers and the future of the global advertising industry.

Meta is diving even deeper into artificial intelligence. According to an exclusive Wall Street Journal report released Monday, the company behind Facebook and Instagram is developing AI systems that could eventually fully automate the process of creating and buying ads on those popular sites. This means no human copywriters, designers or media buyers will be involved.

It’s a controversial move that could shake up the $600 billion global ad industry. The announcement also raises fresh questions about creativity, accuracy and the future of marketing jobs.

A representative for Meta did not immediately respond to a request for comment.

Read more: What Is Meta AI? Everything to Know About the Tech Giant’s AI Tools

How would this work?

Seemingly, Meta’s end goal is to create a system that lets businesses simply explain their product or marketing ideas, alongside a budgeting goal, to the AI-driven ad tools and then the machine takes over from there. That means AI generates ad copy, visuals, targeting strategies and even media placement decisions, all without human intervention.

In the short term, this would start with AI making suggestions or streamlining parts of the ad process. But over time, Meta reportedly wants AI to be capable of managing entire campaigns on its own, from start to finish.

Meta’s spokesperson told the Journal that advertisers would remain «in control» of their campaigns, but the broader vision paints a future where AI is the creative director, media planner and performance analyst all in one.

Meta is all in on AI

AI is central to Meta’s long-term strategy. CEO Mark Zuckerberg has called AI the company’s «single largest investment area,» and with competitors like Google and Amazon also building AI-powered ad systems, Meta is racing to claim its stake in the game.

This also aligns with Meta’s broader ambitions to weave AI across its platforms. Meta has already integrated its Meta AI chatbot across Instagram, Facebook, Messenger and WhatsApp, explored creating AI avatars on Instagram, and worked generative AI tools into its apps, so automating advertising is just one more piece of a much larger puzzle.

Read more: How to Opt Out of Instagram and Facebook Using Your Posts for AI

Can anyone benefit from this move?

The effort builds on Meta’s existing suite of AI-powered ad tools, like Advantage+ and generative tools introduced in 2023. Those features already allow marketers to automatically create image backgrounds, write copy variations and test ad formats. What’s coming next could push those tools into full autonomy.

According to Meta, this isn’t just about improving efficiency, it’s about scale. Meta claims small businesses would be the key beneficiary of this AI approach, especially those lacking the time or resources to hire marketing teams. The idea is that AI can level the playing field between small businesses and multi-million dollar companies.

«In the not-too-distant future, we want to get to a world where any business will be able to just tell us what objective they’re trying to achieve, like selling something or getting a new customer, how much they’re willing to pay for each result, and connect their bank account and then we just do the rest for them,» Zuckerberg said during Meta’s annual shareholder meeting last week.

While Zuckerberg is calling this «a redefinition of the category of advertising,» critics are already raising concerns.

Mainly, media and ethics experts warn that fully automating ad creation could open the door to misinformation, biased targeting and further erosion of accountability in digital advertising. AI isn’t immune to mistakes or manipulation, and can be used to spread harmful messaging, such as AI-generated deepfakes.

Read more: Trump Signs Bill Banning Deepfakes, Nonconsensual Images

What can this mean for advertising agencies and jobs?

Critics are not just concerned with the accuracy for AI-driven ads, they’re also worried about the future of traditional ad agencies and marketing jobs.

Meta claims that its focus on AI-driven ads is not intended to wipe out ad companies and their employees. Alex Schultz, the chief marketing officer and vice-president of analytics at Meta, has said these AI systems are meant to assist ad agencies and he doubled down on the claim that this will be an asset to small and medium-sized businesses.

«We believe in the future of agencies,» Schultz wrote in a recent LinkedIn post. «We believe AI will enable agencies and advertisers to focus precious time and resources on the creativity that matters. While we think there will ultimately be more automation in marketing, the role that agencies play is going to become ever more important through their ability to plan, execute and measure across platforms.»

What can this mean for Instagram and Facebook users?

If you’re a business owner, marketer or even just a regular social media user, you’re going to feel the ripple effects. You can expect to see more ads that were built by AI machines and possibly tailored to your interests in ways that feel more personal, even if no human ever touched them.

Technologies

Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance

Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.

Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.

The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.

Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.

Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.

Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.

The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»

Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.

Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.

At Monday’s close, the stock had dropped 14% year-to-date.

Technologies

OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report

OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.

OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.

Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.

‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

Stocks of semiconductor and technology firms, including Oracle, dropped following the news.

The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.

Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.

This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.

Read the full report from The Wall Street Journal.

Technologies

OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift

OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.

Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).

AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.

‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.

Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.

OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.

‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’

A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.

Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’

On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.

OpenAI and Amazon have been getting closer in other ways.

In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.

Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.

The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.

‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know