A report released in March 2026 by the Madison and Wall consulting and advisory firm estimated that AI-powered advertising revenue in the U.S. will grow 63% to reach $57 billion in 2026. The report estimated that AI-powered advertising will account for 12% of total advertising spending in 2026.

The firm also estimated that advertising spending that does not rely on AI-powered tools will represent 88% of advertising in 2026 and will grow by 5% in the same period.

Madison and Wall defines AI-powered advertising as spending that flows through platforms where AI controls targeting, bidding, budget allocation, and campaign optimization with minimal human intervention.

The report identified Google's Performance Max and Meta's Advantage+ as the two largest AI-powered advertising tools. It said other platforms, including Amazon and TikTok, offer similar AI-powered advertising products. It also estimated that search and social media are the dominant channels for AI-powered ads.

In addition to its 2026 estimates, Madison and Wall estimated that AI-powered ad budgets will grow at a compound annual growth rate of around 29% through 2030.

Last year, Mark Zuckerberg said that Meta's automated ad tools had become powerful enough that brands could connect a bank account, set their campaign objectives, and let artificial intelligence take over.

Luke Stillman, managing director at Madison and Wall, said in remarks tied to the March 2026 report, "Every advertiser is going to say, 'We really value control, and we want transparency to understand where every one of our dollars is spent.'" Stillman also said, "Transparency is a nice-to-have, not a must-have."

The report said generative AI ad tools can occasionally produce unintended ads if not closely monitored.