Here are the cases for and against AI agents

Exploring the Future of Advertising: AI Agents as the New Target

In a world where technology is rapidly evolving, the concept of advertising to AI agents instead of humans might seem like a plot from a science fiction novel. However, this idea is gaining momentum among marketers, thanks to the insights shared by Aravind Srinivas, CEO of Perplexity, during the Marketing Against The Grain podcast. Srinivas envisions a future where users never see an ad. Unlike Google, where merchants compete for users’ attention, they would instead vie for the attention of AI agents.

Srinivas’ comments have sparked a flurry of opinions, with arguments both supporting and opposing this seemingly futuristic yet plausible vision. Let’s delve into the cases for and against the idea of serving ads to AI agents.

Cases for Ads Served to AI Agents

Providing a Cleaner User Experience
One of the most compelling arguments for targeting AI agents is the potential for a cleaner user experience. People are increasingly frustrated with the constant barrage of ads, especially those that miss the mark. By shifting the focus to AI agents, the endless stream of ads could vanish from view, allowing consumers to enjoy the web and their platforms without interruptions.

Enhancing User Efficiency
AI agents can significantly enhance user efficiency by taking over manual or menial tasks, freeing individuals to focus on more complex activities. Rohith Kolluri, co-founder of software development company Stealth, which is developing an AI agent for D2C growth marketing teams, explains, “If you’re a consumer, it could book travel, transportation, a reservation, or purchase something, for example.” As AI agents become more familiar with users, they can interact with ads and make decisions on their behalf.

Boosting B2B Operations
AI agents can also improve efficiency in B2B operations. Kolluri, who is in the early stages of building an AI agent for D2C growth marketing teams, highlights how this can enhance team performance. “We’re building it to help them with the full creative analysis and testing and optimization workflow they need to grow their businesses,” he says. “It’s like adding a junior employee that works 24/7 on this workflow to all of the teams.”

Cases Against Ads Being Served to AI Agents

Shifting the Target from Humans to AI Agents
For years, marketers have lamented spending money targeting bots instead of real people. Ironically, this might soon become the goal. Srinivas predicts that advertisers may need to charm AI agents to get their products in front of users. This shift represents a significant change in strategy, as brands strive to impress the algorithms they once criticized.

Kolluri notes, “If advertisers can’t, or it doesn’t work out, they won’t pay to advertise on those systems because they have to get a return to justify advertising those systems.” Companies must figure out how to create a great user experience while ensuring advertisers still see a return on investment.

Relying on Other Platforms for Reach
As advertisers target AI agents, they will no longer focus on mass consumers on these platforms, effectively removing the top of the funnel. Kolluri explains, “Platforms with AI agents are going to capture people that are searching for things that they already want.” Advertisers may need to use different demand generation channels, such as Meta ads, to grow brand awareness.

Slow Consumer Adoption
While the tech world may embrace this concept, widespread consumer adoption may take time. The metaverse serves as a cautionary tale; despite Meta’s CEO Mark Zuckerberg’s enthusiasm, adoption has been slower than anticipated. A marketing executive at a global bank shares, “I think we’re a long way from the point where enough people are comfortable allowing an AI agent to spend money on their behalf and take control of the decision making.”

Tom Limongello, co-founder of Nextipedia, adds, “Unless I’m training multiple agents, and I know which ones are doing what, I’m still going to want to see those ads. The machine [AI agent] isn’t going to be persuaded. It’s just going to try to break down what’s there and characterize that into terms.”

As the debate continues, the future of advertising remains uncertain. Will AI agents become the new target for marketers, or will traditional methods prevail? Only time will tell.