If you’ve been avoiding generative AI because you “don’t trust the robots,” here’s some bad news: the robots already work here.

According to the Interactive Advertising Bureau (IAB), over half of ad buyers are now using generative AI to create digital video ads, and nearly one-third of all video ads today are enhanced or built entirely by AI.

By 2026, that number is expected to climb to 39 percent.

So if you’re still staring at your blank storyboard hoping for divine inspiration, congratulations — you’re officially competing with algorithms that don’t need coffee breaks.

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Why Is Everyone Suddenly Letting AI Make Their Ads

Because it’s fast, scalable, and surprisingly effective.

Here’s what marketers are doing with generative AI right now:

Versioning ads for different audiences (42 percent)
Because humans were tired of cropping the same video into 37 formats manually.

Tweaking visuals and styles (38 percent)
Because nothing screams creative genius like swapping your purple background for another purple background.

Refining contextual relevance (36 percent)
Because you could hire someone to write dozens of headlines for every segment, or let the machine do it faster.

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Who’s Using It the Most

Here’s the surprising bit: smaller and midsize brands are leading the charge.

By 2026:

• 45 percent of small brands expect AI to create nearly half of their videos
• 42 percent of midsize brands expect the same
• Only 36 percent of large brands plan to lean that hard on AI

Why? Because small and mid-tier brands don’t have endless creative budgets or massive in-house teams. AI lets them punch above their weight without burning through every penny.

But What About CTV

Connected TV (CTV) is also having its moment.

According to the same report:

• Buyers expect 47 percent of CTV inventory to be biddable this year, up from 34 percent in 2024
• Programmatic CTV buys now account for 85 percent of the market, up 10 points from last year
• 41 percent of buyers say programmatic CTV gives them better ROI
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But smaller advertisers report more challenges with CTV, like measurement issues and fewer resources to optimize campaigns.

Which means yes, humans are still involved. Eighty-three percent of buyers say people are essential to customize CTV deals, even as platforms become more automated.

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What Does This Mean for You

If you’re not exploring AI video tools or CTV yet, you’re falling behind — and your competitors are happy to let you.

But it’s not just about buying tech and hoping for the best. The brands winning in this space are strategic, combining AI with human insight to create smarter, more effective campaigns without wasting budget.

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Want to Actually Compete With the Robots

At Digital Marketing Alive, we help brands figure out how to use tools like generative AI and CTV strategically, without losing their voice or blowing their budget.

We offer a complimentary 90-day roadmap session, where we audit your current approach and show you exactly what to fix, improve, or automate.