Microsoft Advertising Enables AI Max by Default Following 13.6% Improvement in Conversion Rates

Microsoft Advertising announced that it is making the AI Max feature default for all new search campaigns, after the testing phase demonstrated a 13.6% improvement in conversion rates weighted by ad spend volume.

The AI Max feature relies on artificial intelligence to automatically optimize ad targeting by analyzing purchase intent data, expanding targeted keywords, and dynamically optimizing bids, thereby reducing manual effort for advertisers.

This move reflects the escalating competition between Microsoft and Google in AI-powered ad campaign automation, as both companies race to prove that their platform delivers the best performance with minimal advertiser effort.

By making AI Max the default, Microsoft automatically places new advertisers into a fully automated framework, requiring marketing teams to review their new campaign settings and understand the implications of this change on their budgets and advertising goals.

What do these terms mean?

**Conversion Rate:** The percentage of users who completed a desired action, such as purchasing or registering, compared to the total number of people who viewed or clicked on the ad.

**Spend-Weighted Conversions:** A measurement method that assigns greater weight to larger campaigns, providing a more accurate picture of the feature's impact on overall ad spend rather than just on small campaigns.