Affiliation:
1. ISM University of Management and Economics, Lithuania
2. Instituto Politécnico de Bragança, Portugal & CiTUR, Portugal
Abstract
This chapter explores the profound influence of artificial intelligence (AI) on advertising, covering its historical context, current trends, and future implications. Initially, advertising relied on manual data analysis, but AI has shifted the landscape towards more targeted campaigns. AI's role began with predictive analytics for weather forecasting in the 1950s and evolved to include collaborative filtering by companies like Amazon. Current trends include hyper-personalization through predictive analytics, programmatic ad buying, and conversational AI. These AI-driven strategies enhance user experience and improve ad targeting. The future promises even greater personalization, with advancements in voice and visual search. However, ethical considerations regarding privacy and data security have also emerged. This analysis underscores the transformative impact of AI on advertising, from its inception to its current state, highlighting the continuous evolution and future prospects.
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