3 ways AI can Advance Advertising

Claudia Collu, Chief Commercial Officer, Claudia, writes about AI's impact and how it is transforming advertising Machines with a mind of their own are now an accepted part of the world we inhabit, with the artificial intelligence (AI) market predicted to grow to more than $47 billion by 2020. According to the Gartner Hype Cycle, machine learning (ML) – a subfield of AI – is currently at the'peak of inflated expectation', but is just two to five years away from mainstream adoption. Nowhere is the ubiquity of AI more apparent than the advertising industry, where machine learning has already revolutionized media trading, enabling programmatic algorithms to make decisions in real time, based on huge volumes of data. But this is a broad discipline with many intricacies and the advertising industry is already moving from traditional rule-based ML to more fluid algorithms inspired by the psychology of human behavior. A particular strain of machine learning known as deep learning (DL) uses neural networks to mimic human decision-making. The ad industry is increasingly using reinforcement learning (RL) – a specific part of DL – to leverage trial and error, learning just as humans do based on rewards and penalties.