Microsoft Copilot launches AI-powered ad features to vie for ad dollars in the chatbot space

The news: Microsoft will debut AI-powered ads in its generative AI chatbot, Copilot, it said at its Advertising Accelerate event. The company plans to introduce multiple ad formats and tools designed to lure advertisers to the platform.

• The new features include Showroom Ads, a split-screen experience mimicking in-store guidance—brand interaction takes place on one side and answers questions in real time, while Copilot stays on the other for follow-up queries.
• Copilot will also provide an “ad voice” feature that explains why specific ads appear in response to user queries and branded AI agents that let brands engage directly with Copilot responses.