Need to Know News - August 1st, 2025
In this week's Need to Know News edition:
🤖 Amazon just backed a wild "Netflix of AI" that lets anyone create their own TV shows… type a prompt and watch your animated episodes come to life.
🤖 Two Berkeley dropouts went from sleeping in closets to raising $28 million… with an AI marketing platform so powerful that 90% of customers have yanked out a legacy app for it.
🤖 Vogue's latest issue just sparked a TikTok revolt over AI models... and the must see AI agency behind it.
And a whole lot more!
IPG Bets on Agentic AI to Streamline E-commerce Optimization
Facing declining revenues, ad holding company IPG is making a big bet on agentic AI. Its new unit, Agentic Systems for Commerce (ASC), acts like an intelligent system for brands, constantly analyzing competitor pricing, consumer searches, and inventory levels.
The goal is to move clients from using separate tools to having a unified, proactive strategy. For the 20+ brands already testing it, the results are impressive: double-digit sales growth. This is a crucial move for IPG as it seeks new revenue and prepares to merge with rival Omnicom.
Are These Models Real? Guess's AI Ad in Vogue Ignites a Firestorm
Guess just replaced its famous "bombshell" models with AI, and the fashion world is in an uproar. An ad in the latest issue of Vogue features two AI-generated models, sparking calls for a boycott on TikTok. People are angry about "fake women" taking jobs from real models and photographers.
The AI agency, Seraphinne Vallora, claims they are here to "supplement" marketing, not replace people. When criticized for creating unrealistic beauty standards, the agency said they are just creating what people respond to: "beautiful women, things that look surreal."
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Meta’s AI Ad Tools Are Driving Billions in Sales
Meta is spending billions on AI, and now we know why: it's supercharging their ad business. The company's AI is getting so good at recommending products that it boosted ad conversions by 5% on Instagram and 3% on Facebook last quarter. That means more people are clicking and buying.
And Meta is doubling down. They just rolled out a new AI tool for marketers that can take a simple product photo and automatically turn it into a video ad. This ad-focused AI is the main reason Meta's revenue is soaring past all expectations.
Google Cloud: Get Ready for a $1 Trillion 'Agentic AI' Revolution
Google Cloud is forecasting a massive $1 trillion market for agentic AI by 2040. This new type of AI goes beyond simple automation. It can autonomously reason, make decisions, and act to solve complex business problems. According to a new report, over 90% of businesses plan to adopt it within the next three years.
For marketers, this technology will automate everything from ad campaigns to optimizing creative in real-time.This shift is so significant that it's also changing how companies pay, moving toward models based on performance and results.
AI is Your New Travel Agent. Here's the Good, the Bad, and the Biased
Planning a trip used to take hours. Now, AI can create a personalized itinerary in seconds. But according to researcher Seden Dogan, this convenience has a hidden cost. The AI learns from your personal data, meaning your age or income can change the hotel prices you see.
Dogan says people trust AI recommendations, even though they can be wrong. She believes the future isn't about replacing humans but creating "phygital" experiences—a blend of smart tech and the irreplaceable human touch that makes hospitality feel like home.
Big Tech's Billion-Dollar AI Gamble: Vision or Mania? - Bloomberg
Tech giants are in an AI spending frenzy. Microsoft is pouring over $30 billion into data centers in just one quarter, and Meta is handing out $100 million pay packages to AI engineers. But is any of this actually paying off? It's anybody's guess.
The companies are not sharing clear numbers. For example, Microsoft stopped reporting how much of its cloud growth comes from AI. And Amazon keeps its AI revenue vague. Right now, no one can tell if this massive spending is a brilliant move or just "AI mania."
Zuckerberg: Superintelligent AI is Coming, and It's for You
Mark Zuckerberg believes AI superintelligence is right around the corner. But he doesn't just want it to automate work. His vision is to give everyone a "personal superintelligence" to help them with their lives. Think of an AI that helps you reach your goals or even become a better friend.
He's so serious that he's launched Meta Superintelligence Labs and plans to spend "hundreds of billions of dollars" to make it a reality. This focus on personal use aligns with how people already use AI, with one survey showing 51% use it for personal tasks.
Two Berkeley Dropouts Raise $28M for Their AI Marketing Startup
Five years ago, two Berkeley dropouts were living with five roommates and sleeping in closets. Today, they've raised $28 million for their AI marketing startup, Conversion. They started by building a tool to fix their own marketing problems, but after 160 interviews, they found a huge market.
Their AI-native platform automates tasks that legacy tools like HubSpot can't. Now, Conversion is nearing $10 million in revenue, with 90% of its customers ripping out old software to switch. Their strategy is simple: go after businesses frustrated with yesterday's tech.
Amazon Invests in 'Netflix of AI' Startup That Lets You Create TV Shows
Amazon is backing a new AI tool called Showrunner that lets you create your own TV shows. The startup, Fable, calls it the "Netflix of AI" because you can type a prompt and generate animated scenes or full episodes. The founder, Edward Saatchi, says this isn't about making cheap special effects; it's a whole new way to play with entertainment.
One surprising discovery was that users loved inserting themselves into the shows. But Saatchi is realistic, admitting the AI can't handle a long story like "Game of Thrones" yet—it's best at sitcoms.
Most Americans Use AI for Search, But Younger Generation Leads the Way
A new poll reveals a huge AI generation gap. While most Americans use AI for search, young people are embracing it for everything. About 6 in 10 adults under 30 use AI for brainstorming, compared to just 2 in 10 over 60. They're also more likely to use it for work and even companionship.
But overall adoption for work remains low, with only 4 in 10 using it for job tasks. Many people are still wary of using it for important information due to AI "hallucinations."
Thanks for reading.
Until next time!
The AI Marketers
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