AI Update, June 20, 2025: AI News and Views From the Past Week

Catch up on select AI news and developments from the past week or so (in no particular order):

Madison Avenue braces for AI disruption as automation reshapes ad industry. At Cannes Lions 2025, advertising leaders have confronted the accelerating impact of AI on their business, from job cuts to agency mergers. Executives at WPP, Omnicom, and Meta see automation transforming both ad creation and media buying, while Google's Veo 3 and Meta's generative tools enable brands to rapidly scale content. AI may shrink traditional agency roles and deepen reliance on tech giants. Still, leaders argue that human creativity remains vital. Importance for marketers: As AI remakes advertising workflows and media planning, marketers must prepare for automation's growing role while doubling-down on creativity and strategic oversight.

Google and others drop Scale AI after Meta deal raises conflict concerns. Google, OpenAI, Microsoft, and xAI are cutting ties with Scale AI following Meta's 49% stake in the data-labeling firm. Concerns over competitive exposure have prompted these companies to seek neutral vendors or in-house teams for sensitive AI model training. Scale AI's CEO is joining Meta, intensifying industry fears of data leaks. Scale may now pivot to its applications business for survival. Importance for marketers: With data privacy and competitive intelligence at stake, this shift underscores the rising need for neutral, secure data vendors in AI development workflows.

Google AI Mode rolls out to all US users, reshaping search experiences. Google's AI Mode, first revealed at I/O 2025, is now live for US users, offering a multimodal, AI-powered search interface with a "query fan-out" system for deeper exploration. It supports conversational follow-ups and could significantly shift user behavior. Search Console data will now lump AI Mode activity into standard web search metrics. Importance for marketers: Marketers should prepare for traffic shifts and evolving search behavior, as AI Mode changes how users discover and engage with content.