Observed Signal · Dec 16, 2025 · Podcast Interview · Source: AdExchanger · Impact: 3/5 · Sentiment: Positive
Microsoft Shifts Ad Strategy: AI Takes Center Stage
Microsoft may shut down its Xandr DSP early next year, signaling a strategic pivot in its adtech approach. In this AdExchanger Talks episode, Paul Longo, GM of AI in Ads at Microsoft Advertising, explains that sunsetting Xandr represents an evolution from a human-driven internet toward an agent-assisted, and eventually agentic, internet where agents can converse to complete tasks. Microsoft aims to invest in AI-powered elements across its ad tech and rely on the Microsoft Advertising platform as the buying platform to realize this vision. Longo emphasizes that AI is an enabler, not a replacement for people, citing a Microsoft survey that found 80% of respondents report not having enough time or energy for their current workload. In the near term, AI is expected to bring relief to media buyers. The episode also discusses conversational advertising experiences, Microsoft Copilot, and the difference between an AI assistant and an AI companion.
Significant strategic shift at Microsoft in AI in Ads and potential Xandr DSP shutdown.
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Key Takeaways & Evidence Grounding
- Microsoft may shut down its Xandr DSP early next year.
- Paul Longo is the GM of AI in Ads at Microsoft Advertising.
- Longo describes sunsetting Xandr as an evolution toward an agent-assisted internet and, eventually, an agentic internet.
- Microsoft plans to invest in AI-powered elements across its ad tech and bets on the Microsoft Advertising platform.
- The episode discusses conversational advertising experiences, Microsoft Copilot, and the difference between an AI assistant and an AI companion.
Connected Companies & Entities
1 Entity mappedRelated Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
AI's Transformative Role in Future Advertising
This article summarizes an AdExchanger Talks episode in which Allison Schiff interviews Paul Longo, Microsoft’s GM of AI in ads, about how AI will transform advertising. The discussion covers two aspects: the use of AI technology to create advertising and how advertising could become part of agentic AI experiences. The hosts reflect on 2025 and offer clues about how AI will appear in advertising in 2026. AdExchanger describes Talks as a fireside-chat style podcast that features industry leaders and provides a different perspective on the people and companies shaping the ecosystem. The piece encourages subscribers to add AdExchanger Talks to their podcast list and looks forward to continued coverage in 2026.
AI Reshapes Advertising; Marketers Face Trust Deficit
AI is fundamentally transforming digital advertising across planning, execution and measurement, driving major platform shifts and new creative workflows while creating industry uncertainty. Jarrod Allen of Monks highlights big tech moves — Microsoft will retire the Xandr DSP by early 2026 to focus on a Microsoft Advertising Platform with Copilot-style AI; Google is embedding ads in 'AI Overviews' and advancing AI Max for Search; Meta is expanding Advantage+ and generative AI investments. The DSP market is consolidating as leaders like The Trade Desk and Google add AI, pressuring smaller DSPs. Despite broad intent to increase AI use (cited ~86% of marketers), adoption is incomplete (~30%) because of a trust deficit tied to black-box models, privacy and control. Google’s third-party cookie phase-out accelerates a shift to first-party data and retail-media partnerships.
GreenCore Solutions Opens London Office for A2A-Grocery Agentic Commerce
GreenCore Solutions Corp. (GSC) announced the opening of a sales office in London, UK, under a new entity, GreenCore Solutions (UK), to support its agentic commerce hub, A2A-Grocery.co.uk. The company introduced its 0-100 Agentic Density Scale, indicating that the UK and Europe account for 84% of grocery makers, while the USA accounts for only 16%. GSC's AI agents have processed 100 million transactions year-to-date, with 40% from Europe, 20% from the USA, and 40% from the rest of the world. The London office aims to connect European makers with AI agents buying for grocery retailers across 20 markets. GSC operates on Microsoft Azure and Google Cloud Enterprise, with data residency in each market.
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