The advertising technology (adtech) industry is undergoing a dramatic transformation in 2026, with artificial intelligence emerging as the central force reshaping how digital ads are created, served, and consumed. As thousands of adtech executives gather at the Consumer Electronics Show in Las Vegas, AI dominates the conversation alongside concerns about declining web traffic and intensifying competition from Big Tech.
AI has evolved from buzzword to business imperative for adtech companies. While AI was discussed in advertising circles long before ChatGPT’s arrival, investors now demand that companies demonstrate concrete value from the technology. A wave of new AI startups is leveraging generative AI to automate ad creation and streamline marketing workflows, while established players are racing to define “agentic advertising” and develop industry standards for AI-to-AI interactions.
The most revolutionary concept emerging is agent-to-agent advertising, where AI agents market to other AI agents rather than human consumers. Debra Aho Williamson, founder of Sonata Insights, explains that this represents a fundamental shift: “Advertising right now is a pretty image or video aimed at a human designed to elicit a human emotion, but an ad between an agent doesn’t even look like an ad, it’s just a bit of code or numbers designed to cause one agent to take an action with another agent.”
OpenAI’s potential entry into advertising has the industry on high alert. The company’s hiring of Instacart CEO Fidji Simo to lead its applications business is widely viewed as laying groundwork for ad integration, though specifics remain unclear.
Meanwhile, AI chatbots are threatening adtech’s core business model by reducing traffic to traditional web pages. A July 2024 Similarweb report found that Google’s AI Overviews increased the “zero-click rate” from 60% to 80%, meaning users get answers without visiting websites. This traffic decline directly impacts programmatic ad revenue, forcing publishers and adtech companies toward diversification strategies, particularly in connected TV (CTV) and video advertising.
The industry also faces consolidation pressures as buy-side and sell-side platforms blur together, while awaiting remedies in Google’s antitrust case. A federal judge ruled Google holds an illegal monopoly in online adtech markets, with the Department of Justice seeking divestiture of Google’s ad exchange. The decision, expected soon, could create “seismic ripples” throughout the ecosystem, according to IAB Tech Lab CEO Anthony Katsur.
Key Quotes
Adtech, if nothing else, is incredibly adaptable
Andrew Casale, CEO of Index Exchange, emphasized the industry’s resilience in the face of AI disruption and changing economics. This statement reflects adtech’s history of surviving multiple technological shifts and suggests confidence that the sector will successfully navigate the AI transformation.
Advertising right now is a pretty image or video aimed at a human designed to elicit a human emotion, but an ad between an agent doesn’t even look like an ad, it’s just a bit of code or numbers designed to cause one agent to take an action with another agent
Debra Aho Williamson, founder of Sonata Insights, articulated the revolutionary concept of agent-to-agent advertising. This quote captures how AI could fundamentally transform advertising from a creative, emotion-driven discipline into a data-driven negotiation between algorithms, representing perhaps the most significant shift in advertising since the internet’s creation.
I don’t think there are any companies focused on CTV that aren’t having success right now
Bill Wise, CEO of Mediaocean, highlighted how connected TV has become a critical growth area as traditional web advertising declines. This statement underscores how the industry is pivoting away from AI-threatened web pages toward video content on TV screens, where engagement remains strong.
They are one of a few 800-pound gorillas now. When there are changes within Google, whether they’re internal changes, whether they’re self-manifested, or whatever ruling comes out here, those create seismic ripples in our ecosystem
Anthony Katsur, CEO of IAB Tech Lab, explained the outsized impact Google’s antitrust case will have on the entire adtech industry. His comment emphasizes how Google’s dominance means any forced changes to its business practices could reshape competitive dynamics and create opportunities for smaller players.
Our Take
The convergence of AI disruption and antitrust action creates a rare moment of vulnerability for established adtech players and opportunity for innovators. What’s particularly striking is how AI simultaneously threatens and promises to save the industry—destroying traditional web advertising while opening entirely new frontiers in agent-to-agent marketing and automated content.
The real question is whether adtech can move fast enough. OpenAI’s potential advertising play could be the industry’s “iPhone moment”—a sudden shift that makes existing approaches obsolete overnight. Companies investing heavily in traditional programmatic advertising may find themselves holding depreciating assets if consumer behavior shifts dramatically toward AI agents.
However, the industry’s historical adaptability shouldn’t be underestimated. Adtech has survived cookies, mobile, programmatic, and countless other disruptions. The difference this time is speed: AI is evolving exponentially faster than previous technologies, compressing what might have been a decade-long transition into just a few years. Winners will be those who can pivot quickly while maintaining profitability through the transition.
Why This Matters
This story reveals how AI is fundamentally restructuring the $600+ billion digital advertising industry, creating both existential threats and unprecedented opportunities. The emergence of agent-to-agent advertising represents a paradigm shift that could make traditional display advertising obsolete, forcing every player in the ecosystem to adapt or risk irrelevance.
For businesses, the implications are profound: marketing strategies built around human psychology may need complete reimagining when the target audience is AI agents making purchasing decisions. Companies that fail to develop AI-native advertising capabilities risk losing access to an increasingly automated consumer marketplace.
The traffic decline caused by AI overviews and chatbots threatens the economic foundation of the open web, potentially accelerating consolidation around walled gardens like Google and Meta. This could reduce competition and innovation while giving Big Tech even more control over digital advertising. However, Google’s antitrust troubles and OpenAI’s potential advertising entry could counterbalance this trend, creating new competitive dynamics. The decisions made in 2026 will likely determine whether the advertising industry remains diverse and competitive or becomes dominated by a handful of AI-powered platforms.
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Source: https://www.businessinsider.com/ai-google-antitrust-trade-desk-key-storylines-shaping-adtech-2026-1