How Tech Giants’ New AI Ad Tools Threaten Big Agencies

What’s happening: Instagram, ahead of its 15th anniversary later this year, has unveiled its largest-ever brand campaign—a short film titled ANYWAY featuring a diverse cast of creative voices including Tyler, the Creator; Rosalía; Fred Again..; Corteiz’s Clint 419; Cole Bennett; Nadia Lee Cohen; and Slawn. In the film, Bronx-born Trinity shares her creative insecurities with Tyler, who encourages her to embrace self-expression. Simultaneously, CEO Adam Mosseri released a blog post underscoring Instagram’s “unprecedented” investment in supporting its two billion users by championing creativity, taking risks, and overcoming doubt. Mosseri also teased future features including customizable grid orders, private profile posting modes, and major enhancements to the standalone video editing app Edits. Additionally, Rosalía collaborated with Instagram to design a new handwriting-inspired font for Stories and Reels, and the platform hinted at a Spotify-listening share feature for Notes.

Why it matters: As Instagram competes with TikTok for cultural relevance and creator loyalty, ANYWAY serves as a timely repositioning effort aimed at younger, creatively driven users who crave both expression and authenticity. The campaign’s cast—spanning streetwear, alt-pop, DIY film, and visual art—signals a deliberate push toward Gen Z and Gen Alpha tastemakers, particularly those who identify with subcultural style, emotional candor, and multimedia storytelling. By aligning with these voices and introducing low-pressure posting tools, Instagram is trying to shift its image from a polished highlight reel to a more flexible, creatively affirming space. It's a business play to retain creators, re-engage users wary of algorithmic sameness, and stake a claim as the digital canvas for the next wave of cultural expression.

What’s happening: Netflix has introduced its first major redesign of the TV app homepage since 2013, aimed at streamlining content discovery and modernizing the viewing experience. As reported by James Hibberd for The Hollywood Reporter, the update features a simplified top navigation bar with clearer categories—Movies, Series, Games, My Netflix—and large, floating title cards that display richer metadata like “#1 Today” or “Emmy Winner.” Internally dubbed “Eclipse,” this overhaul has been in development since 2022 and is now rolling out across smart TVs and streaming devices. The redesign reduces decision fatigue, helps users find content faster, and prepares the platform for its broader push into gaming and live programming.

Why it matters: Netflix’s redesign is a strategic business move, not merely cosmetic. As subscriber growth stabilizes in core markets and competition intensifies, discoverability and personalization have become crucial. The refreshed interface—with its bold visuals, curated metadata, and dynamic recommendations—minimizes decision paralysis and boosts engagement, particularly on its ad-supported tier where watch time is directly monetized. Better recommendations and clearer navigation help ensure users stay longer and return more frequently. Simultaneously, the new layout lays the foundation for Netflix to evolve into a full-spectrum entertainment ecosystem, seamlessly integrating games, live events, AI-powered search, and other formats. It’s a calculated repositioning to optimize retention, ad revenue, and content ROI while setting up future expansion.

What’s happening: Shopify’s Chief Design Officer, Carl Rivera, has removed "UX" and "Content" from job titles across the company, rebranding roles into general "Designer" and "Writer" positions. As reported by Jesus Diaz for Fast Company, Rivera announced the change publicly, sparking industry-wide debate. He argues that standard usability has been automated by AI—“UX is the floor”—and that human designers should now focus on taste, intuition, and emotional resonance. The shift reframes design as a creative, aesthetic-led discipline rather than a process-bound science, aligning with Shopify’s view that the next frontier of product value is in memorable experiences, not just functional clarity.

Why it matters: This move signals a broader repositioning of design roles in the AI era, where foundational usability is increasingly seen as commoditized. For Shopify, eliminating “UX” from titles is both a talent strategy and a brand play—it appeals to designers who want creative ownership and sends a message to the market that Shopify values design as an emotional differentiator. It also simplifies internal hierarchy and aligns teams around a more fluid creative ethos. As tech companies reconfigure their org charts to reflect new workflows shaped by automation, Shopify’s decision could set a precedent for how design is labeled, valued, and led in the next chapter of product development.

What’s happening: Meta has acquired a 49% stake in Scale AI for $14.3 billion, valuing the data-labeling startup at roughly $29 billion. As reported by Krystal Hu, Rishabh Jaiswal, and Kenrick Cai for The New York Times, the deal brings Scale’s 28-year-old CEO Alexandr Wang into Meta’s new “superintelligence” lab, where he will co-lead research on advanced AI models. Wang, who will remain on Scale’s board, is being replaced by Jason Droege as interim CEO. This move deepens Meta’s existing work with Scale on training data for its LLaMA models and represents one of the company’s largest AI investments to date—at a moment when its own foundational model efforts have faced public delays.

Why it matters: Meta’s bet on Scale AI reflects a shifting playbook in the AI arms race—one centered less on technical dominance and more on talent, infrastructure, and proprietary data control. Bringing Alexandr Wang into the fold is a strategic acquihire, positioning Meta to accelerate its “superintelligence” ambitions and close the gap with OpenAI, Google, and Anthropic. With Scale’s annotation pipeline now largely in-house, Meta gains a significant advantage in building large-scale, fine-tuned datasets—critical to unlocking AI applications across its consumer platforms. At the same time, the deal signals a consolidation of power around key founders, with Wang’s profile echoing the archetype of the young visionary enlisted to future-proof Big Tech. It’s a bold move that may redefine how AI talent is valued—and how platforms vertically integrate in the pursuit of dominance.

What’s happening: Meta, Google, Amazon, and Comcast are introducing AI-powered advertising tools that promise to automate everything from creative development to media placement. As reported by Patrick Coffee for The Wall Street Journal, these platforms are pushing toward fully automated ad campaigns, with Meta aiming for near-total automation by 2026—where brands provide only a product image and budget. The announcement triggered a market reaction: shares of major holding companies like WPP, Publicis, and Omnicom fell 3–4%, reflecting concerns about how these tools could disrupt agency revenue models. While large agencies are assessing the implications, many small and mid-sized businesses are already exploring the tools as a way to bypass traditional creative services.

Why it matters: The rise of end-to-end AI ad tools signals a deeper shift in the advertising value chain—one that threatens the foundational business model of legacy agencies. As platforms like Meta and Google internalize campaign strategy, production, and optimization, agencies are being squeezed out of the middle. For tech giants, the move consolidates power and revenue by making their platforms not just the distribution channel but also the creative engine. For smaller brands, these tools offer speed, scale, and affordability—but for agencies, especially those reliant on volume and billable hours, the challenge is existential. To remain relevant, agencies will need to reposition themselves around brand stewardship, high-concept storytelling, and strategic orchestration—areas still resistant to automation.

What’s happening: Warner Bros. Discovery is betting big on James Gunn’s upcoming Superman reboot, which will serve as the first major release in its newly restructured DC Studios slate. As reported by Matt McGloin for Puck News, the film is positioned as a make-or-break moment for the studio in the wake of its anticipated corporate split. Executives see Superman not just as a tentpole, but as a referendum on the entire future of the DC cinematic universe. A strong performance could greenlight the broader reboot plans, while a flop could lead to stalled productions, strategic pivots, or even internal shakeups across Warner Bros. Discovery’s entertainment divisions.

Why it matters: For WBD, Superman is more than a box office bet—it’s a litmus test for its ability to rebuild value around iconic IP during a time of corporate fragmentation and heightened market pressure. As studios recalibrate their content strategies in the post-streaming-boom era, the performance of legacy franchises takes on new weight. A successful Superman would stabilize DC’s long-fractured narrative universe, reinforce leadership under James Gunn and Peter Safran, and help position the studio as a streamlined, future-facing content engine. But if it stumbles, it could trigger broader doubts about WBD’s long-term viability, especially as it contemplates asset divestitures and battles to maintain relevance in an increasingly consolidated media landscape.

What’s happening: Disney and NBCUniversal have jointly filed a lawsuit against AI image generator Midjourney, accusing the platform of infringing on their copyrights by producing visuals that closely resemble protected characters. As reported by Steven Zeitchik for The Hollywood Reporter, the suit highlights instances where vague prompts like “superhero fight scene” allegedly generated images that mirror characters from franchises like Star Wars, Shrek, The Simpsons, and the Marvel universe. The studios argue these outputs go far beyond fair use, claiming Midjourney is knowingly enabling derivative works based on copyrighted IP. The 110-page filing includes image comparisons to bolster their case and seeks damages along with an injunction to block the unlicensed generation of studio-owned likenesses.

Why it matters: This lawsuit could become a defining case in the debate over generative AI’s relationship to copyright law. By targeting character-specific outputs, Disney and Universal are drawing a legal boundary around what can and can’t be remixed through AI—especially when that content carries massive commercial value. For the entertainment industry, the case is as much about safeguarding IP as it is about maintaining creative control in a media ecosystem increasingly shaped by automation. For AI companies, it introduces a heightened level of legal risk that could demand new licensing models, stricter output filters, or fundamental changes to how training data is sourced. The outcome could reshape the commercial rules of engagement between Hollywood and generative platforms—setting a precedent for how ownership is protected in the age of AI.

What’s happening: Pop Mart founder and CEO Wang Ning has skyrocketed into China’s top ten richest people, with a personal fortune now estimated at $22.7 billion—making him the youngest billionaire among the country’s elite. As reported by Joyce Li for Hypebeast, the surge in wealth is driven by the explosive popularity of Labubu, the brand’s signature blind-box character created by artist Kasing Lung. Originally a niche designer toy, Labubu has gone global, thanks to scarcity-based releases, global retail expansion, and endorsements from celebrities like Rihanna, Dua Lipa, and Lisa of Blackpink. Social media virality and long lines for weekly restocks have helped push resale prices into the hundreds, turning Labubu into both a cultural and financial phenomenon.

Why it matters: Pop Mart’s rise shows how IP-driven collectibles, when paired with limited availability and celebrity visibility, can become global brand engines. Labubu isn’t just a hit product—it’s a strategy, blending youth culture, hype retail, and emotional design into a scalable luxury-adjacent model. For Wang Ning, this success underscores how cultural relevance and controlled scarcity can fuel outsized business outcomes. And for brands, it provides a blueprint for how niche creativity—when marketed with precision—can leap into mass obsession. It’s a reminder that in today’s market, fandom can be a faster path to fortune than function.

What’s happening: Disney is planning its most elaborate showing ever at Cannes Lions 2025. As reported by Saleah Blancaflor for Adweek, the company will feature a 15-foot chrome Mickey Mouse on the rooftop of the Hôtel Martinez, accompanied by an AR experience—a rare example of branded outdoor installation at the festival. Led by Rita Ferro, Disney’s president of global advertising, the activation includes a curated three-day speaker lineup spanning executives, agency partners, athletes, and celebrities like Ryan Reynolds. Topics will include data and measurement, women’s sports, storytelling, creativity, and AI. The week will also feature a “Disney Beach Soirée,” panels with Dana Walden, Sterling K. Brown, and ESPN’s Rosalyn Durant, and a private dinner headlined by Mary J. Blige.

Why it matters: Disney’s Cannes presence marks a shift from sponsor to orchestrator—using the festival not just as a showcase but as a platform for cultural influence and industry leadership. By investing in immersive experiences and strategic programming, Disney is signaling its relevance across both creative and commercial lanes. The chrome Mickey becomes more than a visual icon—it’s a symbol of Disney’s ambition to merge brand storytelling with technological edge, emotional resonance, and media scale. As advertisers navigate AI disruption and evolving audience behaviors, Disney is positioning itself as a modern-day partner that understands not just where culture is, but where it's headed.

What’s happening: Y Combinator’s Spring 2025 Demo Day spotlighted 218 startups, with AI dominating the stage—not just in headline-grabbing agents, but in foundational infrastructure and niche, vertical applications. As reported by Marina Temkin for TechCrunch, nearly all of the investor-favorite companies are exploring AI’s potential to streamline, specialize, or supercharge how work gets done—from enterprise software to legal services to financial modeling. The batch also includes startups building the physical and computational backbone for AI, including quantum computing and advanced chip design. Rather than chase buzzy AI frontends, this cohort is focused on deeply integrated, practical applications of the technology.

Featured Startups:
Anvil – Optimizing SEO for AI-driven discovery
Auctor – Automating enterprise software implementation (SAP, ServiceNow)
Cactus – AI copilot for solopreneurs
Den – “Cursor for knowledge workers”
Eloquent AI – AI-powered customer operations for financial services
LLM Data Company – Tools for enhancing LLM data pipelines
Scalar – Financial modeling via natural language
Sygaldry – Quantum-accelerated AI server infrastructure
Vessence – Vertical AI tooling for lawyers
Vybe – AI-assisted “vibe”-based app development
Atum Works – Developing 3D chip architecture for AI performance

Why it matters: This Demo Day marks a turning point where “AI startup” no longer means broad consumer-facing apps, but infrastructure, enablement, and edge-specific tooling. The vertical focus suggests investors see more value in targeted utility over generalized smarts. Legacy systems—from SEO strategies to ERP software—are ripe for reinvention, and YC’s picks reveal a bet that deep integration, not just clever interfaces, will define the next wave.