The Ad Industry’s AI Earthquake & What New York Just Told Your Boss

Happy Friday, Leaders!

Hope you’re ready, because today’s issue dives into the AI bombshell reshaping Madison Avenue, plus a New York employment twist that could set national precedent. Meanwhile, a stealth startup is eating Scale AI’s lunch, Meta’s new obsession hires its own buyer, and AI’s role in M&A just got way more than ceremonial.

Let’s decode the future.

AI Just Ate Advertising’s Lunch

Advertising and communication leaders gathered this week at their annual Cannes Lions event, and the ongoing conversation lays bare a brutal truth: the digital ad business is being rebuilt by AI, often without the humans who used to run it.

Here’s what’s happening:

• Performance > Brand: AI agents trained on conversion data are shifting budgets from flashy brand campaigns to ruthlessly effective performance ads. (Sorry, Cannes Lions.)

• From Google/Facebook to OpenAI/Perplexity: Ad spend is leaking away from traditional walled gardens to AI-native channels like ChatGPT plug-ins and AI-powered search.

• Creative teams are hollowing out: Entire ad campaigns—from copy to visual design to media placement—are being generated autonomously.

Why enterprises should care:
If you’re still measuring ROAS like it’s 2019, you’re missing the plot. The future is real-time creative generation, precision AI targeting, and radically compressed campaign cycles. Procurement departments will need to rethink agency contracts, and marketing leaders might need to retrain half their teams.

This isn’t the death of advertising. It’s the beginning of AI-native persuasion machines.

What to Watch: NYC’s AI Worker Shield Law

The new NYC regulation (first of its kind) requires that employers notify workers 90 days before they plan to replace them with automation or AI systems. Transparency is no longer optional.

The law also:

• Applies to both public and private employers.

• Could be a model for other major cities or states (we’re watching California next).

• Signals growing friction between AI adoption and labor protections.

Why it matters:
Enterprises building AI solutions will now need legal counsel at the design stage, not just deployment. It’s a cultural shift, where AI is now a workforce stakeholder. Compliance, optics, and internal morale are all on the line.

Watch this space: HR and legal teams are quietly the new AI gatekeepers.

In the News

1. AI in M&A: From Hype to Dealflow
AI is now a genuine force in dealmaking—not just analyzing pitch decks, but sourcing targets and forecasting synergies. We’re entering the GPT-VC era.
→Read more

2. The Startup That Quietly Beat Scale AI
A stealth-mode contender—unfunded and unbothered—just leapfrogged Scale AI in customer traction and benchmarks. Investors? Who needs ’em.
→Get the details

3. Meta Tried to Acquire SSI. SSI Hired Meta’s Guy Instead.
Safe Superintelligence Inc. said no to Meta’s checkbook and yes to poaching their former acquirer’s exec. Daniel Gross is now at the helm. Power move.
→Full story

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TL;DR:

• AI is unraveling the ad industry—from creatives to platforms, nothing is sacred.

• NYC mandates advance notice before AI replaces human workers.

• GPTs are increasingly driving acquisitions.

• A no-name firm outpaced Scale AI with zero VC.

• SSI flips the script by hiring Meta’s would-be dealmaker.

Stay sharp,

Cat Valverde
Founder, Enterprise AI Solutions
Navigating Tomorrow's Tech Landscape Together