Google is set to integrate generative artificial intelligence into its advertising business in the coming months, joining other major tech companies in adopting the technology.

The company plans to use AI to generate unique ads using materials provided by human marketers, based on an internal presentation for advertisers obtained by the Financial Times.

The new technology will be integrated into Performance Max, a program offered by Google since 2020 that uses an algorithm to determine ad placement, budget allocation, and simple ad copy creation.

AI-powered ads 2023. The presentation, titled “AI-powered ads 2023,” describes how generative AI opens up new possibilities for creativity. While Google already employs AI in its advertising to create simple prompts that encourage users to make purchases, the introduction of generative AI will enable the creation of more sophisticated campaigns akin to those made by marketing agencies.

How it works. According to the presentation, advertisers can submit creative content such as images, videos, and text related to a campaign, and the AI will “remix” these materials to generate ads that target specific audiences and meet objectives like sales targets. However, there are concerns that the tool could disseminate misinformation, as AI-generated text can confidently assert falsehoods.

One individual familiar with the presentation commented that the AI is optimized for converting new customers and does not have an understanding of truth.

Google told the Financial Times that it intends to implement strict safeguards to prevent such errors, or “hallucinations,” as it rolls out its new generative AI features.

Why we care. Google’s integration of generative AI into its ad business offers the potential for increased creativity and sophistication in ad campaigns. By utilizing AI-generated content, advertisers can benefit from customized ads that target specific audiences and help meet objectives, such as sales targets. As a result, this technology can lead to improved conversion rates and more effective marketing strategies, giving businesses a competitive edge in the evolving digital advertising landscape.

ICYMI. Google has already confirmed that it is testing integrating AI into the Google Ads interface. The feature would help brands and marketers create responsive search ads (RSAs) using suggested headlines and descriptions. At this time we’re unsure if the two features are related.

AI – so hot right now. This is just the latest product Google is adding AI into. In addition to launching Bard last month, we know Google is working on new AI features to Search as well as planning a new search engine. Google is also bringing generative AI into Google Docs and Gmail.

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