Digital advertisers are using AI, but IAB points to a ‘knowledge gap’
IAB is urging the UK government to review AI legislations, with digital advertisers adopting the technology at a much higher rate than the wider business world.
As much as 95% of digital advertisers use AI, whereas only 16% of the wider UK business landscape is using the tools – making advertising one of the forerunners of AI adoption. This drives measurable economic impact, with the industry worth £40bn.
This positions the UK’s ad industry as one of the most competitive global fields for AI-enabled services, and research highlights a significant ‘knowledge gap’, which has emerged between real world adoption and the UK’s ambition to ‘win the AI race’.
IAB claims AI-powered advertising could drive £12bn in further value for UK businesses per year with improved targeting, efficiency, and performance.
This is already underway, with 72% of digital advertising businesses using AI for at least a year, and 46% planning on marking AI as a priority area for investment in the next five years. AI has undoubtedly transformed the advertising industry, despite how consumers feel about it, and predictions don’t see this slowing anytime soon.
Whilst there is a focus on responsible AI use, it’s not universal, with only 57% of businesses implementing a governance or ethics framework for AI data and systems – although this rises to 76% among larger organisations.
More focused regulation
With the pace of adoption, IAB research finds that the existing legislation doesn’t fully consider the scope of real-world AI – potentially putting £2bn of market value at risk, and undermining one of the UK’s most competitive digital sectors just as the ‘AI race’ heats up.
The Government’s AI ambitions, the report says, will only be realised if the sectors that are already delivering the technology at scale are supported.
Advertisers are already providing a testing ground for AI innovation, and the industry is a channel for the deployment of AI, boosting productivity, growth, and competitiveness.
“If the UK is serious about leading globally in AI, it must ensure that digital advertising is recognised as a central part of that strategy, with a policy environment that supports continued investment, innovation and responsible growth” says Beatriz Vieira, head of communications at IAB UK.
