Marketers are investing more in digital channels and customer acquisition as they seek growth in an AI-driven market, highlighting how AI is reshaping budget priorities.
According to Gartner’s CMO Spend Survey 2026, awareness and conversion activities now account for 62.6% of media spend, while digital media accounts for more than two-thirds of total media investment. Spending on customer acquisition continues to rise, while investments in loyalty and retention have fallen 29% since 2024 and now represent less than 15% of total media spend.
The findings, presented this week at the Gartner Marketing Symposium/Xpo in Denver, show that AI influences channel strategy and budget allocation. Gartner says enhanced personalization capabilities and the ability to optimize digital channels through AI are among the factors driving this shift.
However, Gartner analysts caution that the most AI-mature organizations often take a different approach. On the other hand, these companies tend to devote a larger share of their budget to customer loyalty and a smaller share to digital channels than less mature organizations.
“AI can help marketers optimize faster, but optimization is not the same as strategy,” said Ewan McIntyre, vice president, analyst and chief research officer at Gartner.
Investment in AI still depends on people
The research also challenges the assumption that AI automatically reduces labor costs.
Labor’s share of marketing budgets increased from 21.9% in 2025 to 24.5% in 2026, suggesting that organizations are investing more in talent and operational capabilities as they adopt AI. At the same time, 70% of CMOs said their marketing processes are not mature enough to effectively implement and scale AI, while only 30% reported mature or fully developed AI readiness capabilities.
Lack of internal AI expertise remains the biggest barrier to AI-driven effectiveness, cited by 38% of marketers.
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Consumers are more skeptical of AI content
As marketers continue to invest in AI, consumers are increasingly wary of its impact on content quality.
Another Gartner survey found that 49% of U.S. consumers believe generative AI has worsened content quality. Among Gen Z and millennial consumers, that number rises to 57%. This speaks to a more skeptical media environment in which brands must work harder to establish credibility and trust.
“AI-generated content increases the volume of media consumers encounter, but not necessarily its value,” said Kate Muhl, vice president analyst at Gartner.
The challenge is compounded by changing media habits. Nearly six in ten consumers surveyed said they prefer to interact with multiple media or technologies simultaneously rather than focusing on a single activity. For marketers, that means competing for increasingly fragmented attention while responding to growing skepticism about AI-generated content.
