A marketer’s guide to

chatbots and agents:

AI ROI
from generative
to
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Contents

01 Executive foreword 03

0 2 The purpose of this guide 04

0 3 Moving from ‘wow’ to ‘now’: Where are we today? 05

0 4 Search smarter: SEO in the era of conversational AI marketing 08

0 5 Take people from awareness to affinity 18

0 6 Practical steps for advertisers today 19

0 7 Your prompting cheat sheet 21

0 8 Next steps to stay ahead of the curve 27

0 9 How Microsoft can help 29

10 Appendix: Definitions for commonly used terms 34

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Executive foreword
from Paul Longo, General Manager, AI in Ads for Microsoft Advertising

Dear Marketer,

After countless conversations at recent industry The way people engage with technology and
events and in one-on-one meetings, one message content has transformed. This guide serves as your
has become crystal clear: 2025 is the year AI moves roadmap for adapting your advertising and SEO
from promise to practice, but a test-and-learn strategies—and, ultimately, achieving your marketing
approach is needed to put this into motion. goals. It’s designed to bridge the gap between
potential and practice, enabling you to harness the
We’re living through a seismic technological power of generative AI to build trust and develop
shift, and marketers are at a pivotal moment. meaningful, personal relationships with customers.
Generative AI isn’t just a buzzword—it’s a Imagine a future where your brand doesn’t just
transformative force reshaping how we connect reach audiences—it truly connects with them.
with audiences. Devices are no longer just
tools; they understand our languages, see the That future is now.
world through our lenses, and hear the sounds
around us. Generative AI is reshaping how It’s important to note that we’re all still learning.
businesses operate and interact with people. We’ll continue to capture new insights, update
this guidance regularly, and share it with the
For marketers like you, this is driving investments marketing community.
in both generative AI tools and new strategic
thinking. And for your customers, it’s opening While this is a quickly evolving space, we’re here
the door for highly personalized, unforgettable to help you seize the opportunity today.
experiences that delight and deliver significant
value, from search to advertising and beyond.

Paul Longo,
General Manager, AI in Ads

Now, let‘s dive

in together

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The purpose of this guide

“
Generative AI (GAI) is more than just
the latest tech trend—it’s a game-changer;
a paradigm‑shifter. It’s giving marketers like
you the power to understand your audiences
in deeper, more meaningful ways, to anticipate 2023 was about ‘wow.’
their needs, and to deliver personalized 2024 is about ‘how.’
experiences that truly resonate. And it enables And 2025 will be ‘now.’
you to accomplish tasks more efficiently, The shift to AI-first marketing
improving your return on time spent. requires agencies and
brands to rethink workflows,
This guide discusses strategies and best practices for
extending your brand’s reach through popular chatbots partnerships and strategies.”
and agents. Refining your SEO and paid media strategies
can help create new opportunities for your brand to Sir Martin Sorrell
create meaningful connections with customers. The guide Executive Chairman, S4 Capital,
also covers tips on improving performance outcomes at the 2025 Consumer Electronics Show
and leveraging the power of conversational AI-powered
tools in building and optimizing ad campaigns.

Today, change is happening more rapidly than nearly

any major technological advance to precede it, and this
guide offers helpful perspective to both team leaders
and individual contributors implementing the work.

Lastly, with any emerging new technology, there’s

a lot of new terminology that can easily be confusing
or conflated. To help you out, we’ve added a quick
reference set of definitions in the Appendix.

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Moving from ‘wow’ to ‘now’:

Where are we today?
GAI is reshaping the relationship people have
with technology, creating new opportunities
and redefining what’s possible for how
brands and people connect.

The entire discovery process becomes easier with

conversational AI. People can be more expressive,
using dialogue-like interactions when searching for
information so their intent isn’t just inferred, but
deeply understood. There’s a significant opportunity
for brands to align their marketing and advertising
approach with how audiences now seek information,
make decisions, and connect with content.

“Deliver the right message to

the right people at the right time”
has been marketing’s North Star for decades.

Conversational AI brings us closer than ever to making

this a reality by supporting hyper-personalization
and dynamic discovery. The days of simple queries
or diminishing signals are being left behind.
Richer conversations and historical context now
augment our ability to leverage behavioral insights,
purchase patterns, and product preferences
to support hyper-personalization at scale.

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Understanding these
key trends is essential:

People are moving from passive Quality and authenticity

consumption to co-creation are non-negotiable

Consumer behaviors are evolving, moving Chatbots and agents prioritize substance
from passive content consumption to over style, and readers do, too. If a brand’s
empowered co-creation. Conversational products, reviews, and site content aren’t
AI fosters dynamic, interactive experiences genuinely helpful, they may not surface in
where people actively shape the content they GAI-driven recommendations or connect with
consume. The Harvard Business Review notes people. As S. W. Miliano, managing director
more than 100 use cases, from generating and cofounder of The Stone Register marketing
ideas to researching product ideas. Over firm, notes, “While AI can simulate a lot, true
time, co-creation fosters trust and loyalty. authenticity will always shine through.”2

Relevance improves Collapsing

performance marketing funnel

When large language models (LLMs) Conversational AI experiences create a new level
have access to comprehensive brand of personalization, remembering user preferences,
information, they can accurately interpret behaviors and actions. This streamlines the
user intent and deliver highly relevant customer journey by providing highly relevant,
experiences that enhance performance. context-aware responses, reducing the need
Internal data from Microsoft Copilot for multiple searches and extensive website
advertising experiences shows a 69% navigation. We’re moving to accelerated decision
increase in click-through rates (CTR) and making, where discovery, research, and conversion
an improvement in conversion rates.1 are integrated within a single seamless exchange.

1. Microsoft First Party Data | June 2024 - August 2024 | Comparison between similar serving positions in Search and Copilot.
2. S.W. Miliano. The Importance Of Authenticity In The Age Of AI. Forbes Business Council. July 18, 2024.

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“
Marketers aren’t being left behind, either.
New GAI features are rapidly being added to
everyday marketing tools to leverage consumer
trends. Ad platforms are directly embedding
GAI-powered tools, helping with everything from
generating ad copy and writing product descriptions,
At OMD, we’re leveraging GAI
to generating eye-catching images and providing
insights to optimize campaigns in minutes instead at multiple levels, from everyday
of months. As GAI advances, we should expect practical applications that
even more intuitive and autonomous options in increase efficiency to cutting-
our daily toolboxes. The ‘Now’ of GAI is here.
edge marketing strategies that
enhance effectiveness. OMD
was an early mover toward AI-
powered advertising products,
conducting workshops to ensure
a clear plan for implementation
that would optimize outcomes
for our clients.”
Fabio Goncalves
Head of Paid Search, OMD USA

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Search smarter: SEO in the era

of conversational AI marketing

The introduction and rapidly increasing

adoption of chatbots and agents
of people that use
is already transforming all areas

66%
Microsoft Copilot go to
of engagement, but few have seen the service to perform
as much rapid change as search. topic research, including
product comparisons.
As chatbots and agents change the
search landscape, SEO and SEM experts
have an opportunity to shift their approach
for this new era. While traditional search
principles and digital marketing strategies Statista notes that:
remain foundational, GAI-driven search
in chatbots and agents introduces new
pathways and challenges that demand
both strategic and tactical updates.
68%
of people have used GAI
for answering questions

90M
people will rely on GAI search
as their primary tool by 2027

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SEO is getting an upgrade:

From queries to conversations

01
Marketers know how to optimize Master
websites and content for traditional the basics
search. But with conversational AI,
search results come as comprehensive, Strong foundational SEO practices, accessibility,
colloquial responses that synthesize and clear data architecture remain essential.
information from multiple sources. Resources like Bing Webmaster Tools can help keep
your website optimized for discoverability, fast
Conversational AI experiences not
loading, and technical accuracy. For a full list of best
only answer queries directly, but also practices, refer to the Bing Webmaster Guidelines.
anticipate follow-up questions for
a better user experience.

Even with the introduction of AI-powered

chatbots and agents, SEO remains critical
to enhance brand discoverability and drive
business outcomes. You need to adopt a
multifaceted strategy that balances traditional
SEO techniques with the following methods to
better optimize content for interactive formats:

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02 Focus on
search intent 03 Keep
content fresh
User intent remains the most important factor. Regularly audit and update existing
Use intent-based keywords and long-tail content to maintain relevance and
keywords to capture the specific needs of people authority. Use tools like IndexNow
at various stages of their journeys. Incorporate to quickly notify search engines
conversational, question-based keywords that of updates, ensuring they’re
reflect how people engage with GAI-driven captured and surfaced faster.
search. Learn more in the blog article, The Value of
Intent-Driven SEO in AI-Powered Search Engines.

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04 Embrace and track

conversion rates 06 Technical SEO:
Indexing and crawling
While metrics like bounce rates and CTR are Technical SEO is imperative for keeping your
important, focus on how well your content site easily crawlable and indexable by search
converts visitors into customers, leads, or sales. engines. This includes optimizing site structure
This data will help you make informed decisions and addressing any technical issues that could
about your content strategy, allowing you to hinder your site’s performance. Using IndexNow
optimize for better performance and higher ensures your site is always up to date and
engagement. By incorporating A/B testing with accurately indexed in search engines, leading
tools like IndexNow, you can quickly reflect to improved search visibility and faster discovery.
your content changes in search engines, identify
patterns, and make data-driven decisions to

07
optimize your content strategy, ensuring it’s
always in sync with searcher intent. The ultimate Monitor
goal is to create content that not only attracts performance
visitors, but also drives meaningful actions.
Use tools like Bing Webmaster Tools to track search
performance and conversions. Regular audits of

05
analytics data can help refine your strategies and
Quality vs. identify areas for improvement.
quantity
The evolving web ecosystem emphasizes the
importance of originality and quality in driving
SERP authority. In GAI engines, some sites may
experience fewer clicks as people find content faster
and don’t need to click through as many links in
search results. Therefore, focus on the quality of
your clicks, not the quantity. It’s important to attract
highly relevant and intent-driven queries that lead
to meaningful interactions and conversions.

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Don’t forget the

human element
While GAI tools offer numerous benefits, Satisfying customer intent
including the ability to produce large
amounts of content, it’s essential to use
them as a source of inspiration and There’s no standard guide for the types
assistance rather than a replacement and formats of content you need on your site.
for human creativity. However, understanding customer intent and
offering content that meets the needs of visitors
GAI-produced content should serve as a foundation is key. For example, you may not need a video if
that creators can build upon, as a tool for inspiration you’re selling a bag of carrots, where nutritional
and assistance. Human oversight ensures the and freshness information may be more relevant,
final product is original and reflective of your but it could be useful for showing the fit of a sweater
brand’s unique voice. You’ll maintain authenticity someone is shopping for. Experiment and see how
and personal connection with your audience, novel ideas and different content types can better
while aligning with search intent to serve up satisfy visitor needs and improve your rankings.
valuable results and strengthen your brand.
Quality standards

Keep the following Always review and edit GAI content to ensure it
in mind: meets your quality standards. GAI can make errors
or produce content that lacks depth and nuance.

Balanced integration Originality and creativity

Leverage GAI to enhance your content, Use GAI to generate ideas and drafts,
not replace it. Prioritize quality over quantity, but infuse your personal insights,
build trust through consistent and meaningful experiences, and creativity into the final
engagement, and make sure your content content. This keeps your content unique
remains authentic and valuable to your audience. and resonating with your audience.

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Delightful, relevant,
and high-ROI: How
conversational AI is
changing advertising
As search evolves, so does advertising.
Broader GAI trends such as content
co‑creation are coming to the foreground,
driving deeper relevance and engagement
and offering brands new high-performance
strategies for capturing audience attention.

The massive adoption rates of chatbots and

agents are transforming advertising and helping
brands build more effective campaigns to achieve
greater ROI in a GAI-powered ecosystem.

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01 Taking content creation to the next level

Conversational AI can increase efficiency, Whether crafting ad copy, creating headlines, or

reduce time to market, and help anyone designing visuals, GAI can help you level up your
campaigns. GAI tools make it simple to tackle even
with a wide range of creative needs,
the most complex tasks—for example, allowing
from copy to imagery.
brands to effectively scale the localization of
content to audiences in nearly any language.

EXAMPLE PROMPT Research from the American Marketing Association shows

You are a marketer trying

85%
to make your message
resonate with Gen Z in the
United States. Based on
the content of my landing
page <add url> create
10 suggestions for ad
copy and headlines to be
used in search campaigns,
of marketers using GAI report improved productivity,
maximizing the likelihood
that Gen Z will engage with with common usage in areas like
my message and convert
into new customers. Make
sure to keep the product
truth of my offering and
don’t overpromise benefits.
The message should target
38%
Gen Z users using language writing

28%
that resonates with them,
without referencing Gen
Z in the actual ad copy.
visual storytelling/
image generation
33%
content creation

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02 Efficiency gains through conversational AI

Chatbots and agents are making it DIAGNOSTICS EXAMPLE PROMPT

easier for you to manage your time
and work smarter across campaigns.
Why are there no
It’s like having a personal assistant
impressions in the [name]
right there waiting to help. campaign? Please run
a Diagnostics report.
And the time saved is significant. For instance,
Microsoft 365 Copilot users are seeing a
70% productivity boost and finishing tasks
29% faster. That means less time spent on
repetitive work and more time for innovation. PERFORMANCE SNAPSHOT
EXAMPLE PROMPT
For campaigns, when it comes to everything
from campaign insights and performance
recommendations to FAQs, GAI tools like Copilot Provide a detailed report
in Microsoft Advertising Platform help you tackle on the Performance Max
the creation, management, and optimization campaign type performance
over the first two weeks
of small and large campaigns faster, leaving
of January 2025.
more room for strategy and fresh ideas.

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03 Unleashing creative ideation

Conversational AI is also helping Need a visual ad? GAI can generate tailored
marketers unleash their creativity imagery in minutes. Imagine crafting ad copy that
speaks directly to eco-conscious millennials in one
and iterate fast enough to develop
campaign, then shifting to bold, playful messaging
highly personalized campaign assets.
for Gen Z in another. From a creative perspective,
GAI also helps develop strategic planning and
With the right tools, marketers can explore
campaign ideation. It’s like having a creative partner
new ideas and test different approaches with
who’s always ready to brainstorm, refine ideas,
ease. Features like “Try a different tone” in
or give instant feedback. Collaboration opens
Copilot let you fine-tune messages instantly,
the door to quicker decision-making and more
so they resonate with your audience.
innovative campaigns, whether you’re working
on a single ad or a full-scale strategy.

EXAMPLE TEXT PROMPT EXAMPLE TEXT PROMPT

Imagine you’re a marketer. I’m a marketer in Rome

Help me create 3 different ad selling local coffee to
copy ideas that will resonate international visitors.
deeply with eco-conscious I need a background image
millennials, emphasizing that feels comfortable to
sustainability and green an international audience
living in one campaign. of all nationalities while
Then, in the same campaign representing a sense
context, transition to bold of place in Rome.
and playful messaging
options that capture the
vibrant and dynamic spirit
of Gen Z in another.

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“
By merging creativity with efficiency,
GAI‑powered tools are helping marketers
deliver innovative campaigns that engage
audiences more effectively.
At DEPT®, we believe the
ultimate promise of AI is about
forging new possibilities, from
generating imagery to inspiring
new marketing campaign ideas
to delivering on the dream of
hyper-personalization. We’ve
found our teams are most
eager to adopt AI solutions
when they enhance rather
than replace their work, give
them more time for strategic
thinking by performing tactical
tasks, and drive real results like
new customer acquisition and
increased conversion.”
Bridget Fahrland
AI Consultant, DEPT®

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Take people from

awareness to affinity
Consumer expectations for authentic, engaging,
and personalized experiences are higher than ever,
and advertising is stepping up to meet the challenge.
Brands now have the AI-powered tools to design
tailored campaigns that resonate deeply with
audiences, fostering loyalty and driving results.

For instance, insights from Microsoft Advertising

reveal that ads on Copilot achieve:

1.7x
times higher CTR compared
to traditional search ads

Additionally, when ads are well-placed and relevant:

40%
of people report that these ads
enhance their overall experience

3. Microsoft First Party Data | June 2024 - August 2024 | Comparison between similar serving positions in Search and Copilot.
4. Publicis and Microsoft. “Consumers & Generative AI: Building Trust in Conversational AI.” 15-minute online survey of 2,115 consumers conducted in August 2024.
Participants were aged 18-65 and located in the United States, United Kingdom, Canada, and Australia.

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Practical steps for

advertisers today
01 03
Establish GAI principles that align Use prompting
with your company values best practices
Clear principles help ensure the technology When creating visuals, follow prompting
you adopt supports your brand’s mission and best practices by including instructions for
ethical standards. This alignment fosters trust clear action, image type, subject, context,
with your audience, promotes responsible details, and lighting when developing
AI use, and reinforces your commitment to imagery. We’ll cover this in more
integrity and excellence. For example, take detail in the next section.
a look at Microsoft’s principles and approach.

02 04
Upload more assets to enhance Optimize campaigns
the user experience for omnichannel

GAI’s ability to tailor messaging helps campaigns Solutions like Performance Max have
feel relevant and authentic. Support that with the flexibility and ability to better adjust
a variety of messaging and visual options. to the granular and dynamic context of
As GAI platforms work to optimize the ads omnichannel conversations. For example,
experience for exact user intent, the larger the Microsoft data shows that Performance
pool of assets (images, copy, etc.) the AI has to Max campaigns increase ad impressions
draw from, the better it can deliver the perfect in Copilot, and these ads also perform
ad to the user in their context. It’s like giving with better CTR and conversion rates
the AI all the ingredients it needs to create when compared to traditional search.
the perfect dish for each person. For example,
use Copilot in Microsoft Advertising Platform
to quickly get asset recommendations
tailored to your audience and help you save
time improving asset variety, so you can test
different tones, styles, and formats with ease.

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05 07
Prioritize visual assets If it works,
and ad formats keep going
Rich visuals and multimedia formats are essential for Digital marketing optimization best
standing out in chat environments, which can support practices also translate to emerging GAI
an array of visual content. When combined with channels. For example, your work to
AI-powered tools like Performance Max, you can see optimize search campaigns with the right
even greater performance improvements. Microsoft signals (like Universal Event Tracking)
data shows that visual ad formats like Multimedia and the right conversion goals will also
Ads have a 1.7 times higher CTR and conversion benefit your ads in Copilot, so you can
rates in Copilot in comparison to traditional search. optimize once and benefit twice.

06
Save time with
smarter tools

AI assistants can help you with everything from

creating assets to critical and readily available
campaign insights and recommendations.
One example is Campaign Diagnostics, available
in Copilot in Microsoft Advertising Platform,
which can quickly run quality assurance checks
or immediately spot a campaign with delivery
problems and identify what the issue is, saving
precious time. Another example is the Performance
Snapshot feature, which provides a summary of
your core campaign KPIs at your fingertips.

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Your prompting
cheat sheet
GAI’s ability to create compelling ad copy, Role definition
engaging visuals, and dynamic content is
undeniable. However, beneath the surface,
mastering the art of prompting empowers Assigning a ‘role’ to the GAI helps it generate responses
marketers to fully harness the potential of GAI. that align with the desired perspective. This could
be asking it to think like a person in a specific role,
such as a copywriter, or bring dedicated expertise
Prompts are how people communicate with
to the table, such as search engine marketing.
GAI-powered tools. A well-structured and
complete prompt shapes a successful output.
EXAMPLE
Crafting precise, imaginative prompts allows
you to tap into GAI’s full potential, making your
campaigns more creative, efficient, and impactful.
Act as a professional
marketer crafting an ad
Prompting is about context and clarity. Don’t think
campaign for eco-friendly
of it as a new language; it’s a structured way to cleaning products.
interact with GAI in which the details you provide
dictate the results in a language that’s comfortable
for you. Even marketers without technical skills
can see the value of prompting by embracing
these seven key elements of a strong prompt:

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Context Audience

Providing background or situational details helps Specifying the audience shapes the tone,
GAI create more relevant, tailored responses to language, and style of the output. You could
your unique needs. Audience details, how the focus on demographics, search intent, or
content will be used, and where it fits into a broader factors such as what the audience cares most
campaign are all helpful factors to include. about based on customer segment data.

EXAMPLE EXAMPLE

This ad will help Create an Instagram

promote an in-depth caption for a tech literate
video and article series Gen Z audience about a
where the audience new smartphone, focusing
can learn more about on camera quality and
sustainable and affordable advanced features for
cleaning solutions. social media sharing.

Tone Task goals

Defining tone aligns the output with your Clearly define what you want the tool to accomplish.
brand’s voice. By providing clear direction Ambiguity leads to generic or irrelevant outputs.
for style and language, you can target Consider including details such as the specific goal,
outputs from professional to funny. the format and length, and any unique qualities.

EXAMPLE EXAMPLE

Write a playful and quirky Write a 50-word ad for

product description for a luxury coffee maker
a travel mug that keeps emphasizing elegance
drinks hot for 12 hours. and ease of use.

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Inclusivity

Use inclusive modifiers such as metaphors, words,

and feelings that reflect diversity. Highlight dimensions
or product features that appeal to different groups,
including culture, accessibility, gender, and age
for wider reach and more inclusive campaigns.

EXAMPLE

Create ad copy for a

children’s backpack,
focusing on inclusivity
and accessibility for
kids of all abilities and
financial statuses.

Source material

Referencing existing material ensures continuity

and consistency. Providing context helps with
tone, theme, word choice, and voice.

EXAMPLE

Based on the look and feel

of our previous campaign,
‘Clean Living, Clean World,’
write a tagline for a new
biodegradable detergent.

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Here are some additional considerations

for inclusive advertising:

Be specific about the diversity you want to showcase. Use inclusive

language, metaphors, and themes that resonate broadly.

EXAMPLE

Write an ad for a community-oriented

fitness brand, highlighting accessibility for
people of all abilities and body types.

Your brand’s values should shine through every piece

of content. Include them in your GAI prompts to make
sure your messaging feels authentic and aligned.

EXAMPLE

Create a tagline for our products that reflects

the values of environmental sustainability
and women’s empowerment.

GAI is great at tailoring content to specific audiences. Use this to

your advantage by describing the audience you want to reach.

EXAMPLE

Write social media copy for a family-friendly

outdoor gear company, appealing to parents
who value holistic parenting options.

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Bringing it all together

Here’s an example of a prompt that brings together these
seven key elements:

EXAMPLE

You’re an ad copywriter for paid search. Create three

unique versions of ad copy, 85 characters or less, using
the latest research on best-performing ads for selling
all types of children’s shoes. The ads should sound
empathetic and inspiring to parents’ hopes for their
purchase. Include language and product features that
are accessible and suit a variety of ages and genders.

Mastering prompting is an important step

in maximizing the benefits of GAI. By focusing
on clarity, precision, and creativity, marketers can
produce better results faster—whether crafting ad
copy, generating images, or planning campaigns.

When paired with tools like Copilot, prompting

becomes the cornerstone of efficient and
effective AI-driven marketing strategies.

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If you want to learn more about prompting

for conversational AI, read the below:

“
INCLUSIVE PROMPTING
How to boost your ad performance
with better copywriting
Copilot has been an invaluable
asset in the process of writing new
ad copy for our client, Marks &
Spencer. It’s sparking new ideas
YO U ’ R E C R E AT I V E , N OT A I and helping us craft compelling
Your guide to advertising image messages that resonate with M&S
prompt mixology
customers. By leveraging Copilot’s
easy-to-use features, we have not
only saved time, but also seen
improvements in CTR on Generics.”
Senior Account Executive,
Incubeta/Marks & Spencer London

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Next steps to stay

ahead of the curve

02
GAI has created new opportunities for brands
and adopting GAI tools and best practices
can do more than just improve productivity.
Understanding how different aspects of Iterate
conversational AI marketing work can help and enhance
drive clear strategy, smart tool selection,
Conversational AI adoption is not a one-and-
and workflow updates. Marketers ready to done effort; it requires constant refinement
take their first steps into effective GAI-powered to see the highest ROI. Use GAI to manage
marketing can consider the following five repetitive tasks and heavy workloads, such as
action steps: creating, analyzing, and optimizing assets. Keep
a pulse on how team members are using GAI
tools, what best practices they develop, and any
iterative feedback loops to improve workflows.

01 03
Understand Focus on
pain points training
Brands that take the time to map their needs Help teams get the most out of conversational
before investing in conversational AI tools see AI by investing in the training, knowledge, and
the highest ROI. Identify your high ROI use skills they need to succeed. Provide continuous
cases, where GAI can save the most time, reduce training programs that reinforce GAI best practices
costs, or drive growth. Once you identify your and behaviors. Tailor sessions to each role to
opportunities, prioritize them based on business demonstrate the specific value of GAI for specific
needs and access to the right technology. jobs or teams. Microsoft Copilot Academy is now
available to all Microsoft 365 Copilot users.

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04
Reevaluate processes
and goals
Conversational AI changes what’s possible, so
think about whether it’s time to reassess goals,
KPIs, or other factors. Focus on outcomes, like
campaign results and strategic impact, rather
than traditional metrics like the number of
assets produced. Internal surveys, interviews,
and data can help provide an objective view.

05
Embrace your
path forward
Conversational AI is transforming marketing
into a discipline focused on strategy and
relationships rather than routine tasks.
It’s not about replacing the human touch,
but it is helping marketers get more done
and elevate their impact. Use GAI
to streamline operations, increase
personalization, and enhance creativity
by building better workflows.

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How Microsoft can help

Microsoft Advertising offers a suite of tools designed
to help you at every step of your GAI journey.

Ads in Copilot

Copilot represents a unique way for you

to reach customers as they converse and
research online. As of January 2025, your
search ads are eligible to show in English,
French, German, and Spanish speaking
markets where Copilot is available. We’ll
be adding more markets and languages
in the coming months.

Three core ad types are eligible to show in

Copilot: text ads, feed-based ads (including
shopping ads, tours, and activities ads), and
multimedia ads. We’ve been very deliberate to
not add to the existing workload of creating new
campaigns, so we leverage existing assets from
your search campaigns in Microsoft Advertising
Platform for Copilot. We highly recommend
using Performance Max campaigns to optimize
your campaign performance for Copilot.
This creates the most efficient workflow for
you as an advertiser and leads to better results.

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Copilot in Microsoft
Advertising Platform

Copilot in Microsoft Advertising Platform

redefines how teams approach campaign
creation and management. This tool acts
as a digital companion, guiding people
through the entire campaign lifecycle.

Improve advertising performance with

data-driven diagnostics and performance
snapshots to refine campaigns. Expand
experimentation and creativity by streamlining
ad creation and testing processes. Keep
performance at or above target KPIs with
actionable, real-time insights that optimize
campaign performance and budget allocation.

“
Copilot in Microsoft Advertising Platform is
becoming an invaluable digital advertising
assistant. It seamlessly combines convenience
and knowledge, offering swift
and insightful responses.”
Cynthia Gutierrez
Senior Associate, Paid Search, dentsu

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Copilot for
Microsoft 365

Copilot for Microsoft 365 transforms

collaboration and operations across
marketing teams, creating streamlined
workflows and enhanced team dynamics.
This GAI-powered solution goes beyond
advertising to elevate team performance
and drive results.

Enhance customer engagement by delivering

personalized, timely content that resonates
with audiences. Simplify complex workflows
to execute campaigns faster and with greater
efficiency. Foster improved collaboration
through GAI-driven insights and shared
knowledge, empowering teams to align
seamlessly. Leverage real-time analytics
for data-driven decision-making, ensuring
campaigns are optimized for success.
Stay agile with scalable and flexible solutions
that adapt to evolving business needs and
integrate effortlessly with other Microsoft tools.

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Microsoft
Copilot Studio

Microsoft Copilot Studio empowers

brands to create custom GAI agents
designed to meet unique organizational
needs. By combining low-code
development with GAI capabilities,
Copilot Studio enables businesses to
build intelligent solutions with ease.

Create AI agents tailored to your specific goals,

all while minimizing the need for extensive
coding expertise. Seamlessly integrate internal
knowledge systems to ensure agents deliver
accurate, brand-aligned responses. Elevate
customer interactions by enabling agents to
engage conversationally, providing personalized,
efficient, and meaningful experiences.

Microsoft’s suite of AI tools—Copilot in

Brands can build deeper connections
Microsoft Advertising Platform, Copilot with their audiences, deliver
for Microsoft 365, and Copilot Studio— personalized experiences, and stay
offers a comprehensive approach to
ahead in the rapidly changing world
conversational AI marketing.
of conversational AI marketing.

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Have any
questions?
Get in touch with your
account representative or
schedule a consultation with our
team of experts to learn more.
New to Microsoft Advertising?
We welcome you to join us.

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Appendix: Definitions for

commonly used terms
This guide covers various topics defined as follows:

Generative AI (GAI) Conversational AI

A category of artificial intelligence that focuses on One application of GAI designed to facilitate
creating original content and understanding natural interactions that mirror natural human conversations.
language. It can generate new text, images, code, and It relies on advancements in NLP, machine learning,
more based on natural language inputs it receives in and speech recognition to understand, interpret,
the form of prompts. GAI applications are designed and respond to natural language input from users.
to produce creative outputs that mimic human-like Conversational AI is commonly used in chatbots
responses in various formats. For example, it can and agents.
be used to create new marketing content, design
graphics, summarize text, or even write code.
Chatbots
Software applications that simulate human
Large language models (LLMs) conversation, either through text or voice interactions.
GAI applications are powered by language models, They use technologies such as NLP, machine learning,
a specialized type of machine learning model that and predefined rules to understand and respond
performs natural language processing (NLP) tasks. to user inputs. Chatbots can be found in various
settings, including customer service, e-commerce,
The main components of LLMs are... and social media platforms. Chatbots are versatile
tools that can engage in human-like conversations,
Data (usually massive datasets)
providing automated assistance and improving
used to train the model.
user experiences across different domains.
Training, allowing the model to learn how
to predict the next word in a sentence. Agents
Model Architecture, using a specific type of neural GAI technology and digital systems that can
network architecture called a Transformer. independently interact in a dynamic world to complete
tasks. Agents leverage foundational models, such as
Fine-tuning, customizing the LLM for specific tasks LLMs, to execute complex, multistep workflows across
like advertising applications or designing graphics. a digital environment. They’re designed to move
from merely providing information to taking action,
Inference, which is the actual usage
effectively acting as virtual coworkers capable of
of the model by users.
completing both easy and difficult tasks.

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