The news: AI-powered ad spending in the US is projected to jump 63% this year, hitting $57 billion and accounting for roughly 12% of the estimated $475 billion US ad market, based on Madison and Wall data reported by Business Insider.

By comparison, the remaining 88% of US advertising that does not rely on AI-powered tools is expected to grow by about 5% this year.

This uptick in AI-powered ad spending is largely driven by Google’s Performance Max and Meta’s Advantage+. These platforms automate targeting, accelerate bidding, and simplify optimization with minimal human input. 

Small advertisers led early adoption of AI-driven ad tools, but the spending scale now confirms even big brands are all in.

Zooming in: Meta CEO Mark Zuckerberg declared AI ad tools had become so powerful that all brands had to do is “connect a bank account, set objectives, [and] let AI run.” Based on recent data, we’re not that far off from that becoming reality.

Google is promoting similar simplicity for its tools. “You provide marketing goals, ad assets, and budget, and Performance Max uses Google AI to get your ad in front of the right customers, at the right time,” per its Performance Max product page FAQ.

Wider adoption of these tools means more data feeding the algorithms, which means accurate targeting and better bidding. The brands holding back today are waiting for a level of refinement that only comes from use and mass adoption.

The caveat: The tech is not flawless. Generative AI tools can produce bizarre content if left unmonitored. But the efficiency gain—compressing campaign delivery timelines—outweighs the risk for most.

Implications for brands: AI-powered tools inside Google and Meta have the platform advantage. They distribute spend and placements at scale.

Brands should test these tools while maintaining as much visibility as is operationally practical—into spend allocation, inventory mix, and creative variants—without undermining performance.

Set clear ROAS benchmarks while monitoring creative output for quality and brand safety. Let ad performance dictate the pace, but also enforce reporting and audits to ensure the “black box” never becomes a blind spot.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.