X Rolls Out Improved Ad Targeting with AI to Boost Performance
Recently, X has rolled out improved ad targeting powered by artificial intelligence, marking a significant shift in how ads are delivered on the platform. According to recent reports, X AI-powered ad targeting focuses on relevance, performance optimization, and transparency as the company looks to strengthen advertiser confidence.
Key Developments
X’s latest advertising updates place AI at the core of audience targeting and campaign optimization. The platform now uses machine learning models to analyse user behaviour, interests, and engagement patterns, moving beyond traditional demographic-based targeting.
A key feature allows advertisers to define target audiences using natural language. The AI system then identifies and expands relevant audience segments automatically, simplifying campaign creation, particularly for small and medium-sized businesses.
Performance optimisation is another focus area. AI-driven targeting can dynamically expand audience reach when campaigns show potential to improve return on investment. According to platform statements, early testing has shown higher click-through rates and improved conversion performance.
X has also introduced AI-powered creative and analytics tools. These features enable advertisers to generate ad copy and visuals from a website URL and receive performance insights for ongoing refinement.
Industry and Expert Context
The rollout of X AI-powered ad targeting aligns with a broader industry shift toward predictive, intent-based advertising. Social platforms are increasingly integrating AI to balance performance with user experience.
X’s AI engine, Grok, plays a central role in this strategy. Platform leadership has positioned Grok as a core differentiator, supporting more accurate audience matching and improved brand safety controls.
Advertiser trust has been a key challenge for X following changes to content moderation and ad placement policies. Many brands paused or reduced spending due to concerns around brand safety and targeting reliability.
Industry observers note that AI-driven transparency tools could help address these concerns. An upcoming “Explain this ad” feature, powered by Grok, is expected to give users more context on why specific ads are shown, including brand information and claim verification.
Why This Matters
For advertisers, improved AI targeting can lead to better efficiency and more predictable outcomes. Reduced manual setup, smarter audience expansion, and automated optimisation help teams focus on strategy rather than configuration.
For users, enhanced transparency and relevance may reduce ad fatigue. Ads that better align with interests and intent are less disruptive and more informative.
For the platform, these updates represent a critical step toward stabilising and growing advertising revenue. AI-powered ad targeting positions X to compete more directly with other performance-focused digital ad platforms.
What Happens Next
Looking ahead, X is expected to expand AI integration across ad delivery, creative testing, and measurement. Deeper use of Grok for real-time insights and optimisation is likely as the platform refines its advertising roadmap.
The monetisation of AI-driven responses may also evolve. Ads appearing alongside high-intent queries could open new opportunities for contextual advertising.
As AI capabilities mature, advertisers will increasingly evaluate X based on consistency, transparency, and measurable performance rather than experimentation alone.
Final Takeaway
X AI-powered ad targeting marks a strategic shift toward smarter, more transparent, and performance-driven advertising. By leveraging AI to improve relevance and rebuild trust, the platform is signalling its intent to re-establish itself as a competitive digital advertising channel.
Digilogy tracks these developments closely, analysing how AI-driven ad platforms are reshaping targeting strategies, performance marketing, and advertiser confidence across the digital ecosystem.
