YouTube turns to AI for smarter, harder-to-avoid ads

In its ongoing battle against ad-free viewing, YouTube is leaning more heavily on artificial intelligence. During its Brandcast 2025 event in New York, the platform announced it will deploy Google’s Gemini AI to enhance the effectiveness of video advertisements by analyzing user engagement and placing ads at moments when viewers are most captivated.

Dubbed “Peak Points,” these segments within videos are identified by Gemini as those where audiences are too engaged to risk leaving—even for an ad. The AI will examine factors beyond what YouTube currently provides through tools like the “Most replayed” histogram found on the video scrub bar. Although the company hasn’t disclosed the specific criteria used to identify these moments, it’s clear that this AI-driven approach is designed to maximize ad impact, ensuring they're seen—and not skipped.

YouTube has remained vague on several details. For instance, it has not clarified whether the ads inserted at these peak moments will be skippable or how long they will last. However, the strategic nature of the placement suggests they are unlikely to be brief or easily avoided. The goal appears to be keeping users from navigating away while maximizing advertiser visibility.

This shift is not likely to be welcomed by viewers, many of whom already express frustration with the increasing number and length of ads on the platform. However, for content creators, this could mean a rise in ad revenue, as more ads seen at high-engagement moments may result in higher payments. Whether this tactic will also lead to increased click-through rates (CTR) for advertisers remains to be seen and will largely depend on how well the ads match the interests of viewers at those critical points.

Beyond monetization, this move is also seen as part of YouTube’s broader effort to push users toward its YouTube Premium subscription. In recent months, the platform has tested limited-time ad-free previews and plans with fewer ads, while cracking down on ad blockers, particularly those used on Google Chrome. By making the ad experience more intrusive and difficult to bypass, YouTube is subtly encouraging users to pay for a cleaner, uninterrupted viewing experience.

In a more viewer-friendly announcement, YouTube also revealed that it will stream the NFL Week One game from Brazil live on the platform on September 5th—free for everyone, no subscription required. This signals a dual strategy: tightening ad delivery mechanisms for regular content while offering major live events as a gesture of goodwill and wide accessibility.

Overall, YouTube’s pivot to AI-enhanced ad delivery represents the next phase in its monetization strategy—balancing user tolerance, advertiser interests, and its long-term subscription ambitions.