AI could optimise 80% of large brands’ digital media spend by FY27

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TL;DR:

Up to 80% of large brands’ digital media spend could be AI-optimised by FY27, pushing AI deeper into bidding, targeting and budget allocation. The opportunity is faster, more measurable media buying; the risk is scaling weak data and poor governance just as quickly.

Article:

Up to 80% of large brands’ digital media spend could be AI-optimised by FY27, according to an industry projection reported by multi-media platform and news destination dedicated to India’s advertising, marketing, media, and brand-building community. If realised, AI would move from a campaign-support tool to a core layer of media buying, influencing bids, audience selection, placements and budget allocation across digital channels.

The shift is being pulled forward by programmatic advertising and agentic buying systems that can test and reallocate spend in real time. A 2026 digital advertising report estimates programmatic buying accounted for ₹30,081 crore, or 42% of India’s digital media spend in 2025, and could reach ₹42,435 crore by 2027.

Adtech companies are also preparing for AI agents to transact media. Various companies are developing agentic buying capabilities and AI-focused ad formats, signalling that automation is moving closer to campaign execution rather than remaining inside analytics dashboards.

That does not mean 80% of budgets will be handed to autonomous systems. “AI-optimised” can cover recommendation engines, bidding, targeting, creative testing and spend reallocation, with humans still setting strategy, brand-safety and compliance boundaries.

That distinction matters because automated efficiency can also amplify poor data, short-term performance bias or weak governance. For marketers, the priority is measurable control: define which decisions AI can make, require audit trails, and judge AI-led optimisation against incrementality and business outcomes.

The brands that gain most from AI advertising will automate execution without outsourcing accountability.