Meta Platforms (META, Financial) is set to launch a fully AI-powered advertising creation and targeting system by the end of next year. While Meta's current platform already uses AI to optimize existing ads, the new system will allow brands to simply upload product images and budgets. The AI will then generate complete ads, including images, videos, and copy, and autonomously select target audiences on Facebook and Instagram, recommending optimal spending amounts.
Additionally, Meta aims to enable advertisers to deliver personalized ad variations in real-time. For instance, users in winter climates might see ads featuring vehicles climbing snowy mountains, while urban audiences could see city street scenes. However, some major brands are concerned that relinquishing more creative control to Meta could dilute their marketing tone. They also point out that AI-generated images in the industry can sometimes be distorted or unusable.
Meta's new tools will require significant computing resources and brand-specific AI models, highlighting the technical challenges ahead. Investors should monitor this development as AI-driven ad creation could reduce campaign costs and time-to-market, potentially boosting Meta's ad revenue and strengthening its control over the digital advertising ecosystem. With Google also developing its AI video tool, Veo, the market will closely watch Meta's product demonstrations and early adoption data in 2026.
