Artificial Intelligence

The news: AI is revolutionizing the way social media managers (SMMs) work, but spending on the tools is surprisingly low. 73% of SMMs, content creators, entrepreneurs, and marketers use AI, per Metricool’s 2025 State of AI in Social Media report. Two-thirds create at least half their content with it. Over half (52%) spend nothing on AI tools each month, and only 8% spend over $50 per month. Our take: Failing to monitor AI’s benefits and limitations could hinder teams’ ability to optimize content or justify investment to higher-ups. CMOs should recognize that adoption alone is not a strategy: Tie outputs to performance data, invest in secure tools, and incentivize teams to move beyond surface-level use to capitalize on AI’s potential.

The summer boom for marketing interns was more of a thud: A report found that the number of ad industry internships has sharply declined since 2022.

The news: Nvidia’s latest earnings report shows that spending on AI infrastructure remains strong, even as some metrics normalize after explosive growth. Despite robust numbers, Nvidia’s stock dipped slightly on Thursday, owing in part to the market’s excessive expectations of the industry giant. Our take: Nvidia is still riding the AI wave but is entering a more complex phase as expectations outpace results. If investment outruns adoption or monetization, the sector risks overkill. The test will be whether user demand and AI application development can keep pace with this level of spending.

The news: Netflix’s heavy use of algorithms to shape recommendations and even greenlight shows is facing criticism for stifling originality. The platform tracks what viewers watch, how long they stay, and when and where they tune in. Algorithms then predict which shows to produce and promote, prioritizing scale and retention over creative risks. Our take: Netflix’s algorithm-first strategy may boost retention in the short term, but it risks long-term brand erosion in an oversaturated market. With viewers favoring platforms that deliver originality and cultural impact, rivals investing in originality and prestige programming have a clear opening to capture Netflix’s fatigued subscribers.

Only 8% of Google searches with AI summaries led to a traditional link click, nearly half the rate of pages without summaries (15%), according to March 2025 data from Pew Research Center.

The situation: Williams-Sonoma is raising prices on select items after its incremental tariff rate doubled since May—from 14% to 28%—due to higher duties on goods from China, India, and Vietnam. More pressure may be ahead after President Donald Trump recently signaled plans to increase tariffs on furniture imports. Our take: Despite operating in the sluggish furniture and home furnishings category—which we project will grow just 0.4% this year—Williams-Sonoma is well-positioned to weather macroeconomic headwinds. Anchored by a diverse brand portfolio that resonates with affluent consumers across life stages, its multipronged strategy—price increases, cost discipline, supply chain improvements, and AI-driven efficiencies—not only will offset tariff pressures but also lay a durable foundation for sustained growth and market share expansion.

The news: Google launched Gemini 2.5 Flash Image (nicknamed nano banana), a generative AI image editor that replaces toolbars with text prompts. Already topping LMArena’s image-editing leaderboard, it signals a shift toward prompt-driven creative tools. Our take: Nano banana, like Veo 3, reinforces Google’s move to establish Gemini as the default AI tool set for marketers, designers, and advertisers. This opens up adoption opportunities beyond text and coding-based genAI applications. For advertisers and marketers, this means two things: Production cycles can compress, and reliance on legacy design platforms could erode if AI tools can compete on price.

The news: ChatGPT’s referral traffic to websites plummeted 52% in a single month after a fundamental shift in how the AI model operates. OpenAI manually reweighted its system to prioritize sources that provide direct, helpful answers, per Search Engine Land. Our take: Declining web traffic means declining revenues. For marketers and publishers, the mandate is to adapt to GEO or risk invisibility in a world where AI answers, not clicks, dominate. Reshaping web content to be more answer oriented could help surface it in ChatGPT, but that’s easier said than done for publishers with legacy content. Companies that move early to understand and influence AI citation patterns will secure a competitive edge as this new content distribution landscape takes shape.

The news: Online retail traffic from generative AI (genAI) sources is exploding, highlighting how AI tools are intercepting and guiding the product search journey. GenAI traffic to US retail sites grew 4,700% YoY in July, per Adobe Digital Insights. 38% of US consumers have used genAI for shopping, and another 52% plan to do so this year. Our take: Brands need to market to both machines and people to avoid being excluded from AI results. Success will involve understanding how models interpret product data and reviews and aligning messaging with the signals AI uses to index and recommend products.

The news: Google Vids rolled out AI avatars, a Veo-powered image-to-video tool, and automatic transcript trimming. Google also announced that features like noise cancellation, custom backgrounds, video filters, and appearance options will be generally available next month. Our take: Brands should: Develop AI content guidelines that set up a clear voice, tone, and message structure to keep scripts brand-consistent. Use AI for speed, not substance. Let the technology handle repetitive tasks, but rely on human input for concepting and storytelling to ensure messages retain emotional nuance—something AI may lack. Pilot, then scale. Test AI video tools on low-risk internal content before expanding to public-facing campaigns.

While AI advancements have sparked litigation between publishers and tech giants—The New York Times’ lawsuit against OpenAI for copyright infringement being the most prominent—some publishers are embracing AI partnerships as an essential revenue driver amid shaky search traffic.

The news: Almost 6 in 10 physicians (58%) are skeptical that the US physician shortage will improve significantly in the next decade, per a Medscape report last week. While we expect the shortage—and physicians’ skepticism—to persist, generative AI could help with both. AI-assisted administrative work can save physicians hours of work, while AI tools for clinical support and diagnostics can boost accuracy, improving job satisfaction and adding appeal for the next generation of medical students.

The news: A majority of US adults are ready for AI to take their bosses’ jobs. 73% said they’re behind AI having a role in hiring, firing, and budgets, per a new ResumeNow survey. 69% are fine with AI monitoring for productivity purposes. Our take: 41% of C-suite professionals are concerned about the ethical use of AI, per Bearing Point. AI can quickly become a yes man, confirming decisions that might not be in a company’s best interest. Balance and oversight are key when adopting AI solutions. Using AI for hiring and budgeting will help streamline those processes, but AI decisions need to be monitored to keep bias and hallucinations in check.

The news: Perplexity added a standalone subscription tier for its Comet agentic AI browser that will fund a $42.5 million publisher revenue-sharing program. Comet Plus costs $5 per month and gives users access to “premium content from a group of trusted publishers and journalists.” The browser is included in Perplexity Pro and Max subscriptions. Our take: Brands should actively monitor how their content is used across AI platforms and consider usage-based deals for fair compensation, especially if content is regularly surfaced by AI tools. They should also examine the real revenue potential of partnerships like Comet Plus and scrutinize audience size, payout structures, and long-term sustainability before committing.

The news: Elon Musk tried to enlist Meta CEO Mark Zuckerberg in a $97.4 billion takeover of OpenAI in February, per court filings in OpenAI’s ongoing countersuit against Musk. The failed bid was Musk’s response to OpenAI’s potential shift to a for-profit model, which he claims broke its founding mission. Our take: The initial phase of the AI boom, defined by research breakthroughs and experimentation, is giving way to a more aggressive era of market consolidation, legal entanglements, and power politics. Litigation is emerging as the last resort when innovation stalls or acquisition paths close—an indicator that the AI industry could be entering a defensive phase where court battles stand in for competitive breakthroughs.

On today’s podcast episode, we discuss what AI Overviews are doing to search behavior, some potential new business models for the internet, and how much “AI slop” might encourage folks to decrease their time on the web. Join Senior Director of Podcasts and host, Marcus Johnson, Analyst, Grace Harmon, and the CEO and Founder of CMO Huddles, and host of the Renegade Marketers Unite podcast, Drew Neisser. Listen everywhere and watch on YouTube and Spotify.

The news: Meta and Midjourney formed a partnership to bring more image-generation tools to Facebook and Instagram. Meta is licensing Midjourney’s “aesthetic technology” for users and brands, Meta chief AI officer Alexandr Wang posted on Threads. He implied that the agreement may go past licensing and involve collaboration with Meta’s research teams to integrate Midjourney into future models and products. Our take: Brands should experiment with Midjourney to streamline content creation for Meta campaigns. However, they should also monitor outputs carefully for quality and copyright issues, especially considering Midjourney has faced allegations of IP misuse. Fast creation is only an advantage if it doesn’t trigger legal or reputational backlash.

The news: Cohere launched Command A Reasoning, its first enterprise-tuned large language model (LLM). Designed for secure environments, the model handles agentic customer service, research, and automation tasks at scale. Its big-business focus is rooted in its ability to integrate with existing tools, support for on-premises deployment, and strict data controls. Our take: Enterprise AI is shifting from optional to operational. Vendors that deliver reliability, guardrails, and measurable value—like Command A Reasoning and Agentforce—will win long-term adoption over general-purpose models built for show, not scale.

On today’s podcast episode, we discuss our ‘very specific, but highly unlikely’ predictions for the future of digital in 2026 and beyond. Why browsers will become the new AI battleground, what does it mean if agentic AI doesn’t take over shopping, and can GenAI actually lead to more of the jobs it can easily destroy? Join Senior Director of Podcasts and host, Marcus Johnson, Senior Director of Briefings, Jeremy Goldman, Principal Analyst, Sara Marzano, and Vice President of Content, Paul Verna. Listen everywhere and watch on YouTube and Spotify.