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Why TikTok's AI Plan Matters 🟢

ByteDance bets big on AI: Getty deal and moderator job cuts signal a major shift in how the social platform operates.

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What’s happening in AI right now

TikTok's two-front AI strategy takes shape

TikTok's new partnership with Getty Images for AI-generated advertising marks the latest move in an escalating competition for automated marketing dominance. The deal gives TikTok's Symphony Creative Studio access to Getty's vast content library - but the implications run deeper than just another feature launch.

Automation arms race

Major platforms are racing to automate every aspect of digital advertising. TikTok's Smart+, Google's Performance Max, and Meta's Advantage+ promise simplified campaign management through AI. What's notable is how differently each platform approaches this challenge - while TikTok partners with Getty, its parent company ByteDance is developing X-Portrait 2, sophisticated technology that transforms still photos into realistic video performances.

The transparency challenge

Early adopters report mixed results. While the tools show promise for generating incremental revenue, they operate as "black boxes" with limited visibility into ad placements and budget allocation. Some advertisers describe misplaced ads and rapid budget depletion without meaningful results. The platforms face growing pressure to balance automation benefits against advertisers' need for control and transparency.

Shifting labor dynamics

TikTok's recent decision to lay off hundreds of content moderators in favor of AI systems signals a broader shift. The move suggests either dramatic improvements in AI capabilities or a changing cost-benefit analysis that favors automation over human oversight. Other platforms will likely watch this transition closely as they evaluate their own content moderation strategies.

Small business impact

This push toward automation particularly affects small businesses, traditionally a key growth segment for digital platforms. New AI tools from major platforms promise to democratize sophisticated advertising capabilities, but many small business owners still struggle with digital literacy and financial management. The gap between AI's potential and businesses' ability to leverage it effectively remains substantial.

Looking ahead

The next few months will likely reveal which approaches to AI-powered advertising prove most effective. Early signs suggest success may depend less on raw technological capability and more on finding the right balance between automation and human oversight. For platforms, advertisers, and investors alike, the key question isn't whether AI will transform digital advertising - it's how quickly and in what ways these transformations will manifest.

What's clear is that this automation wave represents more than just improved efficiency - it's reshaping the fundamental dynamics of digital advertising.

We publish daily research, playbooks, and deep industry data breakdowns. Learn More Here

Our partners at Bagel (the AI & cryptography research lab) just released some new research on two complementary methods for advancing AI reasoning: training-time and inference-time techniques.

The findings suggest combining both approaches: training-time builds foundational reasoning, while inference-time optimizes its application. Bagel Network supports this advancement through open-source infrastructure, empowering a community-driven AI evolution through monetizable open source AI.

AI generated art

A look at the art and projects being created with AI.

Midjourney Prompt: Abandoned castle watchtower in misty dusk, rusted medieval armor on stone railing, autumn leaves scattered across wet cobblestones, distant castle spires barely visible through dense fog, single lantern casting warm glow, ravens perched on battlements, dead climbing roses, cinematic composition with bokeh background.

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