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Generative AI is expected to have a muted impact on the advertising businesses of Alphabet and Meta Platforms as they report Q4 results. Google has introduced AI tools for targeted advertising and budget distribution. Meta is using generative AI for ad campaign variations. Microsoft is likely to be an early winner in the generative AI race with demand for its cloud services. Political advertising will be a focus in 2024, benefiting Meta and Google. Alphabet is expected to report an 11.8% growth in Q4 advertising revenue.

The search giant has rolled out AI tools that help advertisers target audiences in a less costly way and decide how their marketing budgets should be distributed across Google's ad network. Facebook parent Meta is using generative AI to create different variations of ad campaigns.

Despite the buzz over generative AI last year, the impact on advertising giants Alphabet and Meta Platforms is likely to be muted.

Despite the hype around generative AI, Meta and Google will report Q4 results that won’t show AI’s impact

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