The future of the generative AI hype cycle is up in the air, especially after a report from Goldman Sachs questioning the actual value of AI tools. Still, these tools and platforms, whether they’re built on generative AI or glorified machine learning, have flooded the marketplace. In response, agencies are wading through them via sandboxes — safe, isolated and controlled spaces for testing — as well as internal AI task forces and client contracts.

While artificial intelligence itself dates back some time, the industry’s generative AI arms race started last year with the promise that the technology would make marketers’ jobs easier and more efficient. But the jury is still out on this promise as generative AI remains in the nascent stage, and faces challenges with things like hallucinations, biases and data security. (And that’s not to say anything of the energy issues associated with AI.) Additionally, AI companies sit on heaps of data, which could make hacking more of a concern.

“There’s so many ad platforms out there. Everything is AI now. Is it really? Trying to vet that up front and being thoughtful to that, that’s something we spend a lot of time with,” said Tim Lippa, global chief product officer at marketing agency Assembly.

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