Gil Luria

OpenAI has laid some ground rules for what they will and won't do within ads.

But it's going to be a pretty tricky situation for them to navigate because right now we're mostly having these AI chats without any advertising exposure.

And as that changes, they need to make sure consumers are comfortable.

Otherwise, consumers will use their chat less.

What AI now allows you to do is create campaigns a lot faster, both the visuals and the copy, and do so in a way that's

so fast that you can actually create multiple versions, test them all, evaluate them, and then pick the ones that work within hours or days instead of within weeks, which is what it would take if a human had to do all that work.

So this is a big part of how advertising is going to get revolutionized, especially in the digital context and the social media context.

My thought on AI replacing people is that people that use AI well will replace people that don't use AI well.

Digital agencies that embrace these tools and use them to be a lot more productive and create a lot more value for their customers and then for consumers will

should thrive and do a lot better.

And ad agencies and marketing agencies that are stuck in their ways and fail to embrace AI will fall by the wayside.

This isn't about quarterly earnings or about tech reviews.

Welcome to Profiteer Markets.

There's tactical and strategic aspects to this.

So part of this is treasury management.

Google has plenty of cash.

They probably have 80 billion of net cash.

They can cover all of their CapEx needs with the cash flow they have from their traditional advertising business.

But they're choosing to borrow money to create more capacity

to this is very low cost borrowing for them.