👩‍🍳 How we use AI at Tech in Asia, thoughtfully and responsibly.🧔‍♂️ A friendly human may check it before it goes live. More news hereTikTok has launched new AI-powered advertising tools that enable marketers to create video ads using text or images.This announcement occurred on June 16, 2025 during the Cannes Lions advertising festival in France.The features, part of TikTok’s Symphony product, allow advertisers to upload an image or write a text prompt to describe their desired ad.TikTok’s AI then generates five-second video clips suitable for promotions.Symphony, introduced in 2024, also includes AI-enhanced avatars for product promotion.🔗 Source: Bloomberg🧠 Food for thought1️⃣ AI’s evolution from targeting to content creation marks a significant industry shiftThe TikTok announcement represents a pivotal moment in AI advertising’s evolution, moving beyond targeting to actual content creation.Early AI applications in advertising focused primarily on audience targeting and programmatic buying, with creative development remaining a human-driven process 1.This transition has been gradually building since 2018-2019 when industry analysts began predicting AI would eventually move into creative processes, including generating ad copy and designing visuals 1.The shift addresses one of advertising’s most persistent challenges: producing engaging content at scale while controlling costs, particularly significant as video content typically requires specialized skills and equipment.TikTok’s text-to-video and image-to-video capabilities align with the trend of increasing AI integration in creative workflows, which has accelerated dramatically since 2023 when generative AI technologies became more widely available.2️⃣ Platform competition drives AI feature development as TikTok challenges MetaTikTok’s AI-powered advertising tools are part of a strategic effort to compete with Meta for advertising dollars, particularly from small to medium businesses.While TikTok’s ad revenue is projected to reach $22.32 billion in 2024, it still trails significantly behind Meta’s projected $154.16 billion, creating strong incentive to develop competitive advantages 2.Early results from TikTok’s AI advertising tools show significant performance improvements, with some advertisers using their AI-powered Smart+ tool achieving 53% better return on ad spend compared to traditional methods 2.This competitive landscape benefits advertisers, as platforms race to offer more sophisticated yet accessible tools. Meta has been developing similar AI-powered creative solutions to maintain its market position.The competition is particularly visible at events like Cannes Lions, where platforms showcase their latest innovations to attract advertising budgets.3️⃣ AI democratizes advertising by lowering production barriers for small businessesTikTok’s new AI video generation features directly address a significant barrier for small businesses: the high cost and specialized skills required for video production.Studies show that 35% of businesses were using AI significantly in 2024, up from 22% in 2021, with small businesses increasingly leveraging these technologies to compete with larger corporations 3.The original article mentions this democratizing effect, noting that AI-generated ads may give “small businesses more money to spend promoting ads” by reducing production costs.This trend addresses longstanding disparities in advertising capabilities between large and small businesses, as video advertising has historically required resources beyond many small businesses’ reach.However, adoption challenges remain, as indicated by conflicting data showing some small businesses retreating from AI adoption (dropping from 42% to 28% according to one survey), citing concerns about complexity and perceived risks 4.Recent TikTok developments

Is artificial intelligence (AI) living up to the hype for small business owners? NEXT’s recent survey of AI tool adoption for small businesses shows that many are dialing back. Independent operators rely on AI tools to be more efficient, and they’re optimistic about its impact. But many more seem to have stopped incorporating AI into their business operations since they were last surveyed in 2024. And cost and complexity seem to be the barriers keeping them out. NEXT surveyed 1,500 small business owners in April 2025 to ask about their AI usage and plans for implementation. While 42% of small businesses reported using AI in 2024, our 2025 survey reveals a significant drop to just 28%