40% of digital ads will be made with gen AI in 2026

When ChatGPT first hit the creator space, it seemed like it might be another fad. We’d just been through crypto and NFTs in rapid succession, and in both cases purveyors had sworn they heralded a new age of content creation–that web3 flashes in the pan like fan tokens and CryptoZoo were going to become an integral part of our world, making it easier (supposedly) for creators to monetize content and connect with fans.

But, they didn’t.

Generative AI, however, looks like it’s sticking around. It arrived on the scene with similar promises, but unlike crypto and NFTs, which were never embraced–let alone endorsed–by major platforms, gen AI has gotten a seal of approval from the big-tech owners of YouTube and TikTok, and has become a ubiquitous presence in our industry. Creators hear it from everyone: they should be using gen AI to improve production process speed and cost-saving.

The marketers who do their selling on creator-driven platforms are hearing the same thing. And they’re listening.

According to the Interactive Advertising Bureau‘s 2025 Digital Video Ad Spend & Strategy Full Report, 30% of digital video ads are currently made with or “enhanced by” gen AI tools. That’s up from 22% last year.

In 2026, we can expect nearly 40% of the ads we see online to have gen AI involvement.

86% of companies told the IAB they either already do use gen AI or are planning to use gen AI to build their video ads. Their top two reasons for using it? (1) to create different versions of the same ad to target different audiences, and (2) to make “visual and style changes.”

The IAB asserts that gen AI tools “become more valuable [to marketers] when buyers have already solved for reaching the right audience first.” So these tools won’t take over the entire pipeline; marketers still have to know who their buyers are (and hope those buyers aren’t turned off by their use of AI).

At the same time, IAB CEO David Cohen said gen AI is “[transforming] the economics of advertising.”

“As the costs of production fall, the opportunities for advertisers multiply,” he said.

Advertisers intend to exploit those opportunities outside of browser and mobile ads. If you’ve been following YouTube’s updates, you know the platform is now the #1 most-watched connected TV destination in the U.S., beating all streaming services and TV networks for watch time. To, well, connect with these many living room viewers, YouTube has been increasingly rolling out more TV-specific ad formats.

Marketers told IAB they want in on connected TV, with 74% saying they have built or intend to build internal teams specifically to secure living room spots.

While much of the content watched on TV is VODs, marketers are also looking at live and sports content, the report added. A third of marketers said they want platforms like YouTube and Twitch to offer inventive, digital-exclusive ways to weave brand content into interactive experiences during things like livestreams.

“Buyers are excited about sports and other live content coming to streaming,” Chris Bruderle, the IAB’s VP of Industry Insights & Content Strategy, said. “They expect to see new and better capabilities than they can get in linear.”

Where does all this leave us? With gen AI as an inextricable part of digital content, apparently. While this data is about marketers, their usage of gen AI reflects what’s happening in the creator industry. Long-established creator services companies like RHEI (formerly BBTV) and Spotter have turned quickly to build their businesses around gen AI products for creators–and now, more and more creators are using those tools in their content and talking them up in biz dev chats. Just look at MrBeast‘s AI thumbnails and Colin & Samir talking about how AI is “powering” production.

So yes, gen AI is going to be used in 40% of digital ads in 2026. That number is big. But we’re guessing the amount of digital content produced with AI over the next 12 months will be astronomical.