Big tech giants are in a race to incorporate the innovative technology of generative AI into their products. Google, owned by Alphabet, plans to introduce generative AI into its advertising business in the upcoming months, joining other companies that are rushing to integrate this groundbreaking technology into their products. According to an internal presentation seen by the Financial Times, Google intends to use the AI to create novel advertisements based on materials produced by human marketers. This new AI technology will enable Google to produce more sophisticated campaigns that resemble those created by marketing agencies.

Advertisers can supply creative content such as imagery, video, and text relating to a particular campaign, and the AI will remix this material to generate ads based on the target audience and other goals such as sales targets. However, there are concerns about the possibility of misinformation, as text produced by AI chatbots can confidently state falsehoods. Google plans to put guardrails in place to prevent such errors, known as “hallucinations”, when it rolls out its new generative AI features.

The move towards generative AI comes as big tech companies race to take advantage of this technology, which has gained prominence in recent months by creating highly sophisticated material such as text and images in response to human inputs. Google has also recently integrated generative AI into its widely used productivity applications, such as Google Workspace, Google Docs, and Gmail.

This new technology will be embedded into Performance Max, a program that Google has been offering since 2020, which uses an algorithm to determine where its ads should run and how marketing budget should be spent, as well as producing simple ad copy. The advertising industry is facing significant headwinds, with businesses seeking to control costs and increased restrictions on using personal data for marketing purposes. Google’s advertising revenue slipped 4% in the final quarter of last year, leaving its parent company, Alphabet, with overall revenue growth of just 1%. Meta, which owns Facebook and Instagram, launched a similar offering to Performance Max last year called Advantage+. It also plans to use generative AI in its ads systems by the end of the year.

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