Artificial Intelligence

Back-to-school spending is steady in 2025, but shopper behavior is split. Parents are prioritizing tech and clothing—yet these are also the first to be cut when budgets tighten. Consumers are shopping earlier, seeking deals, and using AI to keep costs down. With shopping habits divided by generation and income, retailers must stay flexible, personalize offers, optimize for AI, and create seamless cross-channel experiences.

The news: OpenAI is working on an enterprise product that would rival both Microsoft 365 and Google Workplace, per The Information. The features would allow user collaboration within documents and chat capabilities among co-workers, according to two sources. Our take: OpenAI has the potential to be an all-in-one solution if it could use its interface as a document creator and data storage solution, but Microsoft’s and Google’s brand recognition in that space is likely to keep ChatGPT enterprise solutions on the sidelines—for now.

The news: AI-fueled résumés have pushed LinkedIn job applications up 45% YoY, overwhelming recruiters and upending hiring norms. Recruiters now face an avalanche of lookalike résumés and fake identities—some even auto-submitted by AI bots. Many are turning to AI-powered hiring platforms to fight fire with fire, per The New York Times. Our take:By relying on AI tools to chase efficiency, both sides could drive up skepticism and erode the core goal: finding the right person for the right role. Businesses with open roles should prioritize clarity, human relevance, and judicious restraint in their own use of AI.

Google AI Overviews could face aggressive regulatory measures in UK: A CMA investigation adds to a slew of regulatory challenges that are chipping away at Google’s dominance in search and advertising.

The news: A federal judge gave Anthropic the green light this week to train its AI on millions of pirated books—declaring it “fair use”—even as the company used methods that resembled digital looting, per CNET. Our take: 24% of marketers say copyright concerns will be a big challenge for generative AI (genAI) in the next two years, per Econsultancy. To protect themselves, agencies need to pressure-test genAI vendors and ask tough questions about how models were trained—before the lawsuits land on their desks.

The trend: At Cannes Lions 2025, Meta, TikTok, Google, and others made clear that AI-powered ad automation is no longer an experiment—it’s the plan. The news: Meta and TikTok each emphasized agency relationships, but both platforms expanded generative AI tools that let brands generate and manage campaigns without intermediaries. Amazon, Comcast, and Google are doing the same, pushing toward platform-native, self-serve ad models. Our take: As automation replaces traditional support services, agencies face existential pressure. To stay relevant, holding companies will need to prove they offer value that AI can’t replace—fast.

The news: Under pressure to deliver on AI investments, Big Tech companies like Meta and Apple are seeking to acquire AI startups. Failing that, they’re looking to hire away founders and key personnel to boost their own capabilities. Our take: The recent complications between OpenAI and Microsoft reveal that partnerships and investments aren’t always compatible with a startup’s growth. Expect Meta and Apple to pit money over mission as they hire away founders and key engineers, leaving AI startups high and dry, similar to how Google hired ex-Googlers from AI chatbot startup Character AI. The AI startup talent pool could be shrinking as startups and founders get acqui-hired by Big Tech.

The news: Generative AI (genAI) agents aren’t above sabotage—and most would resort to blackmail or corporate espionage if threatened, per Anthropic’s Agent Misalignment research. When faced with replacement or misaligned goals, Anthropic’s Claude 4 Opus and Google’s Gemini 2.5 Flash responded with blackmail threats to those employees 96% of the time despite ethical restraints in their training. OpenAI’s GPT-4.1, Grok 3 Beta, and DeepSeek-R1 followed suit about 80% of the time. Our take: Anthropic’s research shows that safeguards can’t prevent agents from running off the rails, but continued monitoring will keep those instances to a minimum. Limit agent access to critical systems, review its output during customer contact, and implement failsafes in case deviant patterns emerge.

The news: The rise of AI-generated music has pushed the music industry to shift from takedowns to traceability. Instead of blocking AI-generated songs like the viral Drake-The Weeknd fake, new systems aim to detect synthetic content at every stage—training, production, upload, and distribution. Key takeaway: Advertisers should partner with platforms using AI detection for metadata-tagged AI tracks to ensure brand-safe music placements. Marketers who embrace traceable AI music can stay compliant and transparent while supporting artists’ rights and tapping into scalable, brand-safe sound.

The insight: Amazon is trying to figure out how it can benefit from the AI agentic boom without giving shopping agents unfettered access to its site, according to a report by The Information. Our take: While agentic commerce is far from the norm for the time being, retailers need to be prepared. That’s especially true for companies with retail media businesses, given the potential for AI agents to upend their ability to monetize their sites.

The news: The Trade Desk has partnered with Rembrand to bring AI-generated in-content product placements to its Kokai platform. Advertisers can now programmatically insert branded elements like packaging or signage into videos across the open internet and connected TV. Rembrand claims these placements increase unaided awareness by 1.5x and boost brand recall by up to 31%. TTD also added three AI creative partners: Nova, Spaceback, and Bunny Studio. Our take: This marks a shift toward immersive, scalable ad formats that don’t disrupt the viewer experience. The move strengthens TTD’s AI credentials while giving brands new ways to be seen—without being skipped.

The news: YouTube unveiled Open Call at Cannes Lions 2025, a new platform-native feature allowing advertisers to post campaign briefs that monetized creators can directly respond to with self-produced content. The initiative removes the need for traditional influencer matchmaking, giving brands centralized control over content submissions, approvals, and performance via Google Ads. Our take: As costs rise and brand safety concerns mount, Open Call could tilt the branded content ecosystem in favor of marketers. It simplifies creator discovery, improves ROI measurement, and could lead to longer-term omnichannel partnerships. YouTube’s move positions it as a central hub for scalable, data-informed influencer marketing.

The news: At Cannes Lions 2025, Meta introduced 11 new generative AI ad features—ranging from dynamic image-to-video tools to brand-safe creative automation—and confirmed a $14–$15 billion investment in Scale AI, securing a 49% stake. These new Advantage+ tools aim to help advertisers, particularly SMBs, generate personalized, performance-optimized content at scale. Our take: Meta’s Cannes push underscores its dual strategy: democratizing high-impact creative through automation while investing in foundational AI infrastructure. The tools offer clear short-term ROAS gains, but Meta must still walk a fine line—scaling ad personalization without overwhelming users or alienating agency partners that still prioritize creative control.

The news: Two recent surveys from Duke University and MarTech reveal a common theme regarding technology and AI adoption: Martech underperforms not because of weak tools, but because of weak infrastructure. Our take: The real competitive edge isn’t adoption speed, it’s integration depth. Marketers who lead data strategy and coordinate teams will win the future. Failure to integrate will result in marketers ending up with tools they can’t use.

In the first half of 2025, tariffs rattled retailers, consumer trust wavered in the face of muted DEI efforts, and fast-fashion platforms like Shein and Temu braced for policy whiplash. Meanwhile, private label products surged in popularity, and the retail world took a closer look at generative AI—not just for buzz, but for tangible impact across the shopper journey. Here are the top stories from H1 2025 and why they matter for the rest of the year.

The news: Amazon CEO Andy Jassy said AI-driven efficiencies will reduce the company’s headcount. “As we roll out more generative AI and agents …we will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy said in a letter to employees. “In the next few years, we expect that this will reduce our total corporate workforce.” Our take: Companies that pursue an AI-first mission by laying off employees risk lower team morale, a resistance to AI adoption among workers, and damaged consumer trust. Still, Amazon’s scale, deep pockets, and cloud infrastructure dominance may insulate it from backlash or major fallout.

The news: OpenAI is discounting enterprise ChatGPT subscriptions—but only if customers agree to buy more AI products. Microsoft is unhappy, as it rarely offers discounts for its competing services aimed at enterprise users, per The Information. Key takeaway: Business leaders should anticipate potential shifts in AI pricing resulting from fraying alliances and increased competition between OpenAI and Microsoft. Lock in longer-term pricing and negotiate for essential services while pushing back on expensive add-ons. Diversifying AI vendors and solutions reduces reliance on single entities and provides opportunities for testing of models from different sources, some of which may be more easily customized for specific use cases.

The news: Streaming and social media sites are the top beneficiaries of AI chatbot referral traffic. Out of 1.3 billion generative AI (genAI) search referrals in May, YouTube ranked first in traffic with nearly 40 million visits, per Similarweb. Our take: Focusing on what makes sites top the AI search results could help increase site visits. Expand knowledge-based articles, FAQs, and blog posts with educational and UGC content. Boost SEO with long-tail keywords that are likely to appear in prompts. Encourage inbound links since site authority is a factor in AI search results.

The news: Meta’s $14 billion investment in Scale AI drove Google to cut ties with the startup. With Meta now owning a 49% stake, Google could be concerned that contracting with Scale would give Meta access to its proprietary data. Our take: Big Tech is racing to consolidate control over AI and cloud security infrastructure. Independence and agility could help companies avoid vendor lock-ins and data entanglement as regulators close in.

The news: Reddit rolled out two AI-driven ad tools—Reddit Insights and Conversation Summary Add-ons—to tap into its massive archive of user conversations to help brands reach more audiences effectively, per Reuters. Reddit is using generative AI (genAI) to distill user sentiment and track subreddit trends for sharper ad targeting. Our take: Where Meta and Google rely on targeting individual users, Reddit is spotlighting group dynamics and a shift toward community-led marketing. If these tools succeed, they could offer a new avenue for how brands approach discovery, feedback, and brand perception.