Microsoft reimagines customer engagement with conversational AI

 

Conversational AI was the talk-of-town at Accelerate, Microsoft Advertising’s flagship event for advertisers held from March 3-5 in the stunning Punta Cana, Dominican Republic. The event was a showcase of the latest innovations and strategies in advertising, emphasising the transformative power of conversational experiences in enhancing customer engagement. 

 

Here’s a summary of some of the most exciting announcements from the event, including new ad formats, productivity tools, campaign types and the unveiling of Microsoft Advertising’s 2025 Global Partner Award winners.

 

Microsoft Advertising showroom ads

 

Designed specifically for Microsoft’s AI-powered Copilot experience, these ads recreate the experience of visiting a physical showroom in a digital space. Users can explore products, ask questions to Copilot, and interact with rich sponsored content that complements the organic experience. In the future, virtual brand representatives will be integrated to provide expertise and enhance the immersive experience. Showroom ads will be piloted in April with select clients.

 

 

Dynamic filters

 

This new feature will allow people who have seen ads for a product they’re looking for to refine their search to quickly narrow down options based on their personal preferences. Leveraging the interactive nature of Copilot, dynamic filters remove the friction of typing additional questions, not only saving time but also increasing the chances of answering specific requests. The feature will begin piloting in English-language markets this March.

 

Ads Studio

 

One of the most transformative effects of generative AI on the advertising industry is its ability to enhance productivity and deliver greater ROI. Today, Copilot in the Microsoft Advertising Platform, an AI-powered assistant for advertisers, is already empowering businesses of all sizes to save time, increase agility, and uncover valuable performance insights. 

 

With Ads Studio, a new AI-powered creative tool built for performance marketers, advertisers will be able to effortlessly create better-performing ads. With the expanded asset variety enabled by generative AI, Ads Studio simplifies the process of finding, creating, managing, and optimising creative assets, providing insights to boost advertising results. Ads Studio will be launched within the Microsoft Advertising Platform and will soon be integrated as a shared component across our platforms - including our Microsoft Invest DSP - in the coming quarters.

 

“The gen AI evolution is driving unprecedented innovation,” says Nick Seckold, regional vice president, Microsoft Advertising APAC. “With our recent Accelerate announcements, new ad formats are revolutionising consumer-brand interactions. Brands in APAC are known for their innovative spirit, but they often struggle when it comes to adapting global to their local markets. That’s where conversational AI comes in. By learning consumer preferences in local languages, it enables smooth and natural dialogues between brands and consumers, leading to better outcomes.”

 

 

“Small and medium-sized businesses (SMBs) stand to gain significantly from leveraging gen AI and Copilot in the Microsoft Advertising Platform (MAP),” adds Renee Stopps, regional director, channel partner sales, Microsoft APAC.

 

“By integrating these advanced technologies, SMBs can streamline their operations, enhance productivity, and uncover valuable insights that drive business growth – ultimately enabling SMBs to compete more effectively in the market. Generative AI and Copilot empower SMBs to automate repetitive tasks, optimise marketing campaigns, and make data-driven decisions with ease.” 

 

App campaigns

 

Brands can now leverage the powerful reach of King and Microsoft Casual Games via the Microsoft Advertising Platform; promoting their apps on games like Candy Crush across Android, iOS, and Windows. The pilot has started with select clients with plans to expand soon.

 

 

“Gaming is a powerful medium for brands looking to connect with a highly engaged audience,” says Nicole Prior, head of media and Adtech solutions, Microsoft APAC. “Microsoft can reach players where they play, whether on console, PC or mobile. This reach is significant across APAC, where gaming is a major cultural and economic force, and the gaming universe is vast and diverse. We have a unique opportunity to connect brands with new audiences.” 

 

2025 Global Partner Award winners

 

Beyond its exciting line-up of product announcements, Microsoft Advertising also took the opportunity to recognise the exceptional contributions of their agency, channel, supply and technology partners around the world, celebrating a year of transformational partnerships.

 

Here are the winners:

 

Global Agency Partner of the Year: GroupM

Global Channel Partner of the Year: Diginius

Global Supply Partner of the Year: DuckDuckGo

Global Client Partnership of the Year: EPROFESSIONAL GmbH | Hapag-Lloyd

Global Marketing with Purpose Award: Thryv Australia and New Zealand

 

 

The signals from Microsoft Advertising’s Accelerate are clear: The future of customer experiences is conversational. And brands have an exciting opportunity ahead; not only by embracing AI but in reimagining the way they engage with their audience in more meaningful ways.

 

So, channel your inner eight-year-old and be curious, experiment and imagine. If your website could talk, what stories would you tell? 

 

Learn more about the full list of announcements and product releases from Accelerate 2025 here. For a detailed guide to get from ‘wow’ to ‘how’ with generative AI, download Microsoft Advertising’s AI readiness playbook, 'The Marketer's Guide to Chatbots and Agents: From Generative AI to ROI.'