18th September 2025, Brussels, Belgium - IAB Europe, the leading European-level industry association for the digital advertising industry, has today released the first Pan-European Impact Report on the Impact of AI on Digital Advertising, the first study showing how AI is being adopted, governed, and leveraged across the digital advertising ecosystem.
The results are clear. AI is no longer emerging; it is already here. The majority of companies (85%) report using AI-based tools for marketing purposes, most commonly for targeting (64%) and content generation (61%). Around three-quarters of respondents also plan to maintain or increase their investment in AI, signalling strong confidence in its role as a growth driver for the industry.
Developed by IAB Europe’s AI Working Group, the survey gathered nearly 100 responses from advertisers, agencies, ad tech companies, and publishers across multiple European markets, with over half completing it in the German language.
Commenting on the findings of the report, IAB Europe’s Data Analyst & Sustainability Lead, Dimitris Beis, said, “The digital advertising ecosystem is on the hunt for AI opportunities, both in terms of innovative technologies and new contact surfaces with users. The findings show that adoption in both predictive and generative use cases is widespread, but barriers such as shortages in expertise still need to be addressed. The ecosystem is dealing with questions old and new on issues ranging from privacy to governance, highlighting both that it has been underpinned by machine learning for decades and that new capabilities have transformative potential.”
Key Findings from the Report:
AI Adoption is Widespread and Investment is Growing
85% of companies already use AI-based tools for marketing, with nearly three-quarters confirming at least one campaign function is AI-powered. No respondents plan to reduce spend, and the majority expect to maintain or increase investment.
Targeting and Content Generation Lead Use Cases
Targeting and content generation top the list of AI-powered functions. Ad tech firms and agencies report clear KPI benefits, while publishers remain more cautious, with fewer than a third citing CPM increases.
Governance and Guidance Remain Inconsistent
While 68% of companies have general internal AI guidelines in place, less than half (43%) have them for marketing and advertising. Only a third of companies receive buy-side guidelines on AI, and in many organisations, governance is either not formalised or rests with a single lead.
Privacy and Skills Gaps are the Biggest Barriers
Privacy is flagged as the number one concern across the ecosystem when it comes to the use of AI in digital ad campaigns. Lack of internal expertise and training also stand out as critical obstacles to wider adoption, with differing views on whether user data can be used to train AI models.
Performance and Market Expectations Vary Across Sectors
60% of ad tech firms and 48% of agencies report KPI improvements from AI adoption, but publisher benefits are less direct. Looking ahead, over 80% of respondents say they are interested in buying or selling ad space on consumer-facing AI platforms such as LLM-based chatbots.
Wayne Tassie, Group Director NL at DoubleVerify and Chair of IAB Europe’s Advertising & Media Committee, also commented on the report, saying, “AI is beginning to reshape the foundations of digital advertising, with the majority of companies already using it in some capacity to finesse targeting and accelerate content generation. By streamlining processes, enhancing scale, and driving performance, AI is unlocking new work streams across the ecosystem. Yet gaps remain; governance and expertise are inconsistent, demand guidance is limited, and privacy stands out as the number one concern.
IAB Europe's report underscores the urgent need for clear frameworks, ongoing training, and responsible deployment. By addressing these challenges, AI can become an organic part of daily workflows and unlock a new era of efficiency, creativity, and sustainable growth for our industry.”
The report’s findings will directly shape the priorities of IAB Europe’s AI Working Group, which brings together experts from across the ecosystem to collaborate on responsible and effective AI adoption. Building on these insights, the group will continue its focus on key outputs including developing a Guide to Prompting for Digital Advertising and collaborating with publishers to address content access.
The full report can be downloaded from IAB Europe’s website here.
To find out more about our AI work and how you can get involved, please get in touch with IAB Europe’s Data Analyst & Sustainability Lead, Dimitris Beis, at beis [at] iabeurope [dot] eu.
