Big Tech Companies Announce Shift to AI-Enabled Advertising

Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
Big Tech Companies Announce Shift to AI-Enabled Advertising
Evan Xie

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AI-enabled technology continued creeping into every aspect of our daily lives this week. A viral TED Talk features an early prototype for a wearable AI assistant. Alphabet merged its internal “Google Brain” team with DeepMind, the company it acquired in 2014, to significantly accelerate progress on AI research. Meanwhile, Elon Musk took some time away from having the WORST. 4/20. EVER. to talk up his latest AI project, a bot called TruthGPT that will investigate the meaning of life.


Nonetheless, Google still somehow managed to find a new way to generate a few headlines with yet another new integration for AI technology. According to a report from The Financial Times, Alphabet plans to use generative AI to create new kinds of original advertising across all of its various platforms. The same Large Language Model (LLM) that powers the Bard chatbot, along with some of the AI features available in Gmail and Google Workspace, will now develop ads and even whole ad campaigns for the company’s various platforms, including YouTube, Maps, Gmail, and even search result pages.

We’re not talking text-to-video here, exactly. Alphabet won’t just be writing simple prompts and letting the software design an entire campaign from there. Instead, sponsors and clients will supply Google with “chunks” of content related to their product offering, including images, video clips, and written copy. The bot will then “remix” all of these materials into an original ad, customized and fine-tuned around various Alphabet platforms and services.

The new AI ads will be integrated into a mysterious Google beta program known as “Performance Max.” First introduced in late 2020, Performance Max is designed to maximize ad efficiency and reach across all Google platforms, and treats the company’s entire suite of products and services holistically, as a single advertising channel.

That means sponsors don’t decide whether they want their ads to appear on Google search pages or within Google Maps results or even ahead of YouTube videos. They just sign up, provide sales and CRM data, upload creative assets, lay out their budgets and the type of conversions they’re looking for, and allow Performance Max to do the rest. It’s something of a black box, focused on results but giving advertisers less granular control over their campaigns.

As Google executive Sean Downey explained to Digiday this week, Performance Max remains focused on “outcome and optimization,” giving advertisers fewer options because “too many constraints around their campaigns can actually hinder that goal.” Nonetheless, the addition of AI bots – which also work in mysteriously inexplicable ways behind the scenes – to an already obscured system is a bit like putting a black box inside another black box. Google is falling back on years of built-up trust from brands here.

AI and AI-like systems have long been employed by the advertising industry, which relies on a large amount of number-crunching to guess at what kinds of messaging are going to reach the most receptive audiences across various platforms. It’s nearly impossible for human analysts to compete with software when it comes to comparing so many variables – from audience to device to time of day, context, performance, and so on – across so many different platforms. AI-enabled systems are also more dynamic, and can respond to shifts in user behavior or traffic in real time, making them particularly useful for launching and maintaining ad campaigns and maximizing their effectiveness. So it’s perhaps unsurprising that companies like Alphabet plan to expand their integration behind-the-scenes.

The notable shift is in making this AI output public-facing. Rather than relying on bots to design and run ad campaigns written and planned out by humans, Google will now have the bots actually writing the copy and producing the finished videos themselves. It’s sure to save the sponsors money, down the road, and perhaps also increase efficiency, while likely also costing some human copywriters and marketing executives their jobs.

Google’s not alone, either, in exploring the various ways AI software can assist its advertising business. Earlier this month, Meta announced plans to use generative AI to create new kinds of advertising for its various platforms. Microsoft also has plans to utilize technology developed by its in-house division, ChatGPT creators OpenAI, to improve and fine-tune its ad business. The company has been testing ads embedded in Bing AI chatbot responses since February, though it has declined to report how many users have actually seen or interacted with the ads. (These links aren’t marked as ads within the Bing AI chat conversations, though an ad icon appears if a user hovers over the link.) Microsoft is also playing around with photo and video ads for Bing chats.

California startup Creative.ai is trying to bring a similar kind of system to independent video game designers. Founder and CEO Athar Zia explained to Forbes last week that, once a video game developer identifies an ad type that works well to promote their game, they then must invest a lot of their time producing “endless imitations and iterations” of that ad for various platforms and app stores. The company’s technology, on the other hand, analyzes successful gaming ads and then replicates them automatically for new products.

Whether there will be room in the AI-enabled advertising world for up-and-comers remains to be seen. Regardless, farming out some – if not all – of the work involved in mounting a campaign to digital ad managers seems all but inevitable at this point. The apps can keep an eye on progress across multiple platforms, 24 hours a day, and they go through a lot fewer bottles of whiskey and orders of Clams Casino than the Mad Men.

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Billion-Dollar Milestones and Snapchat’s New Features

🔦 Spotlight

Happy Friday Los Angeles!

This week’s spotlight showcases LA’s thriving tech scene, featuring Snapchat’s latest feature updates and two local startups Liquid Death and Altruist, making TechCrunch’s Unicorn List for 2024.

Image Source: Snap

Snapchat’s recent fall updates bring fresh features, including a new iPhone camera shortcut for instant snaps, Halloween-inspired AI-powered Lenses, and Bitmoji costumes inspired by Mean Girls and Yellowstone. Bitmoji stickers now reflect trending Gen-Z expressions like “slay” and heart symbols for added flair in chats. Plus, the “Footsteps” feature on Snap Map allows users to track their past adventures privately, adding a nostalgic touch.

Image Source: Liquid Death

ICYMI, two LA startups joined the Unicorn Club—achieving valuations over $1 billion. Liquid Death, based in Santa Monica, is a canned water company with edgy branding and a humorous sustainability focus. Known for viral marketing and brand partnerships, it redefines bottled water as a lifestyle brand and environmental statement. In March, Liquid Death closed $67 million in strategic financing, raising its total funding to over $267 million and valuing it at $1.4 billion.

Image Source: Altruist

Altruist, a Culver City-based fintech platform, offers financial advisors streamlined tools to better serve their clients. With a user-friendly investment and account management platform, Altruist has gained strong traction in the finance world. In May, it announced a $169 million Series E funding round, bringing its total funding to over $449 million and earning a valuation of $1.5 billion.

Together, Liquid Death and Altruist exemplify LA’s capacity for innovation across diverse sectors, from lifestyle branding to fintech. Whether reshaping financial tools or redefining sustainable branding, these companies showcase LA’s unique entrepreneurial spirit. Go LA!

Check out TechCrunch’s 2024 Unicorn List here. And don’t miss Snapchat’s latest features—perfect for adding some fun, connection and maybe a few selfies this weekend!


🤝 Venture Deals

LA Companies

  • Freeform, a company bringing AI to metal 3D printing, raised $14M in funding from NVIDIA’s NVentures and AE Ventures to further develop its AI-powered 3D printing technology for industrial-scale production. - learn more
LA Venture Funds
  • Anthos Capital participated in a $70M Series D round for Carbon Robotics, which develops AI-powered robotics for precision agriculture, and the funding will be used to accelerate the growth of its autonomous weeding technology. - learn more
  • Anthos Capital participated in a $3.5M seed round for Plasma Network, aimed at expanding access to USDT stablecoins on the Bitcoin network, with the investment supporting the network’s growth and efforts to enhance stablecoin accessibility through the Lightning Network. - learn more

LA Exits


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      ⚖️FTC’s "Click to Cancel" Rule and Its Ripple Effect on Tech

      🔦 Spotlight

      Happy Friday Los Angeles,

      The FTC’s new “Click to Cancel” rule is shaking up subscription-based tech. Now, instead of navigating a maze of cancellation hurdles, users can cancel subscriptions as easily as they signed up—with a single click. This shift is a wake-up call for SaaS, streaming, and app-based companies, where once-hidden exit options often kept users around simply because canceling was a hassle.

      The rule also requires businesses to send regular renewal reminders, ensuring customers stay informed about upcoming charges. It's more than a cancellation button—it’s about transparency and giving users control over their decisions.

      For startups, the impact goes deeper than UX adjustments. Many have relied on "dark patterns," which subtly discourage cancellations by hiding the exit. Now, companies must shift toward building genuine loyalty by delivering real value, not by complicating exits.

      While this might affect retention rates initially, it could lead to more sustainable business models that rely on satisfaction-driven loyalty. Investors may start prioritizing companies that emphasize transparent, long-term engagement over those that depend on dark patterns to maintain retention metrics.

      The rule opens the door to more ethical UX design and a truly user-centered approach across the tech industry. It may even set a precedent against manipulative design in other areas, such as privacy settings or payment methods.

      Ultimately, the “Click to Cancel” rule presents an opportunity for the tech industry to foster trust and build stronger customer relationships. Startups and established companies that embrace transparency will likely stand out as leaders in a new era of customer-centric tech, where trust—not tricky design—is what retains users.

      As the tech landscape continues to evolve, LA Tech Week 2024 offers a chance to explore these shifts in real-time. Check out the upcoming event lineups to stay informed and make the most of your time:

      For updates or more event information, visit the official Tech Week calendar.


      🤝 Venture Deals

      LA Companies

      • Ghost, a company supporting top brands and retailers with streamlined logistics and fulfillment solutions, raised a $40M Series C funding round led by L Catterton to fuel its continued growth and innovation. - learn more

      LA Venture Funds
      • Assembly Ventures participated in a $27M Series A round for Monogoto, a provider of software-defined connectivity solutions that enable secure, cloud-based IoT and cellular network management on a global scale. - learn more
      • Angeleno Group participated in a $32M Series C round for REsurety, a company that recently launched an innovative clean energy marketplace aimed at providing better financial and operational insights to support renewable energy transactions. - learn more

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        🌴🧑‍💻 Your Guide to LA Tech Week 2024

        🔦 Spotlight

        Happy Friday Los Angeles,

        As many of you know, LA Tech Week is right around the corner, kicking off next Monday October 14th bringing together founders, creatives, investors, and engineers for a week of immersive events, panels, and socials across the city. From blockchain and AI to biotech and design, LA Tech Week is a chance to dive into the ideas shaping today’s technology landscape.


        What to Look Forward To

        Insights from Visionary Leaders: Hear firsthand from industry trailblazers as they share stories, challenges, and key lessons from their experiences. Expect fresh perspectives on AI, venture capital, biotech, and the ethical questions around emerging technologies.

        Interactive Panels: This week isn’t about watching from the sidelines; it’s about engaging directly with the tech community. Participate in hands-on panels discussing everything from startup scaling to ethical AI, with honest insights from those actively shaping these fields.

        Networking Mixers & Social Events: Meet and connect with founders, VCs, developers, designers, and fellow techies across LA. Rooftop mixers, lunch meetups, and creative gatherings offer the perfect chance to spark ideas and collaborate.

        Plan your week with the daily lineup, organized by location for easy navigation:

        For updates or more event information, visit the official Tech Week calendar.

        Enjoy LA Tech Week 2024!!


        🤝 Venture Deals

        LA Companies

        • Clout Kitchen, a Los Angeles and Manila based startup, has raised $4.45M in seed funding, co-led by a16z SPEEDRUN and Peak XV’s Surge, to develop AI-powered digital twins, which enables gaming creators to produce realistic virtual avatars for content and fan engagement. - learn more
        • MeWe, a privacy-focused social media platform, has raised an initial $6M in Series B funding led by McCourt Global to support Web3 integration and expand its decentralized network for 20 millions users. - learn more

          LA Venture Funds
          • EGB Capital participated in a $10M Series A funding round for MiLaboratories, which develops software that enables biologists to independently analyze complex genomic data, accelerating research and discovery in fields like drug development. - learn more
          • Crosscut Ventures participated in the $13.75M seed round for Airloom Energy, a company focused on developing airborne wind energy technology to harness high-altitude winds, with plans to accelerate a pilot project in Wyoming. - learn more
          • Overture VC participated in a $5.5M Seed funding round for Molg Inc., a company developing robotics and software for circular manufacturing, designed to disassemble electronics efficiently and recover valuable materials to reduce e-waste and support sustainable production. - learn more


            LA Exits

            • Options MD, a Los Angeles based telemedicine platform that provides care for people suffering from severe and treatment-resistant mental illness, is set to be acquired by Resilience Lab, an AI-driven provider focused on enhancing mental health care access. - learn more

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