AI adoption in marketing campaigns stalls amid data and transparency issues

Despite the growing buzz around artificial intelligence (AI) in marketing, a new report from the Interactive Advertising Bureau (IAB) reveals that widespread adoption remains elusive. While AI-powered tools like ChatGPT, Perplexity, and Meta AI are being utilized by agencies, brands, and publishers, only 30% have fully integrated AI across their media campaigns. Many cite concerns over data integrity, transparency, and strategic direction as key barriers to broader implementation.

According to the IAB’s State of Data 2025 report, nearly half of those yet to adopt AI in their campaigns anticipate doing so by 2026. However, a significant portion lacks a structured plan to navigate this transition. Brands, in particular, express apprehension about how their agency and publishing partners leverage AI, with 50% highlighting transparency concerns. The absence of well-defined AI governance measures, such as contractual safeguards or dedicated AI oversight boards, further exacerbates these issues.

One of the most pressing obstacles to AI adoption is data quality and security. Approximately two-thirds of surveyed organizations cite fragmented AI tools, inconsistent data protection practices, and concerns over the accuracy of AI-generated insights as primary deterrents. While AI has the potential to revolutionize media planning, audience segmentation, and performance forecasting, the industry has yet to fully capitalize on its capabilities.

Angelina Eng, Vice President of Measurement, Addressability, and Data Center at IAB, underscores the missed opportunities: “The industry isn’t leveraging AI’s full potential. From building media plans to enhancing marketing mix modeling, AI can reshape the entire campaign lifecycle. Yet, many are still hesitant to take the leap.”

Among those actively using AI, the feedback is largely positive. Seventy percent of agencies and publishers report that AI tools meet or exceed their expectations, particularly in areas of cost savings, time efficiency, and resource optimization. However, brands remain slower in adoption, often constrained by the lack of comprehensive AI strategies or defined key performance indicators (KPIs).

The report also finds that while 90% of industry players engage with general-purpose AI tools or integrated platform functions—such as Google Smart Bidding and The Trade Desk’s Koa—many fail to implement advanced AI-driven solutions. Only half of surveyed organizations have considered deploying structured AI adoption strategies, and just 20% have implemented AI-specific contract clauses or governance boards to mitigate risks.

Without a strategic approach, businesses risk falling behind in an increasingly AI-driven landscape. A lack of preparedness not only threatens competitiveness but also exposes organizations to potential data breaches, regulatory non-compliance, and consumer distrust.

“The findings indicate that agencies, brands, and publishers should adopt AI in phases, ensuring data security and training teams on best practices,” Eng advises. “Collaborating with industry leaders to establish standards and prioritizing key use cases will be critical for long-term success.”

Conducted in partnership with BWG Global and Transparent Partners, the IAB’s survey gathered insights from over 500 industry experts. The findings make one thing clear: while AI’s potential in marketing is undeniable, its widespread adoption depends on overcoming significant challenges related to data quality, transparency, and strategic execution.