AI at The Trade Desk: Risk or Opportunity? | The Motley Fool

"Now, artificial intelligence (AI) is emerging as both a tailwind and a potential risk for The Trade Desk. On the one hand, the company has invested heavily in AI to enhance its platform. On the other hand, AI-powered search and content shifts could shrink the very pool of ad inventory that The Trade Desk depends on. For investors, the key question is whether AI ultimately tilts toward being an opportunity or a threat."

"In June 2023, The Trade Desk launched Kokai, its most ambitious AI initiative to date. Building on its earlier Koa system, Kokai distributes deep learning across every layer of programmatic buying -- from bid optimization to impression scoring and budget allocation. The system processes more than 13 million ad impressions per second, applying thousands of signals in real time. The philosophy behind Kokai is not to replace marketers, but to serve as a " copilot.""

The Trade Desk positions itself as an independent demand-side platform competing with Meta and Google across digital advertising. Connected TV and retail media are reshaping brand budgets and increasing demand for transparent, controllable programmatic buying. AI presents both growth and risk: AI-powered search and content shifts could reduce available ad inventory even as AI improves targeting and efficiency. Kokai applies deep learning across bid optimization, impression scoring, and budget allocation, processing over 13 million impressions per second and using thousands of signals in real time. Kokai functions as a copilot for advertisers while offering measurement tools like the TV Quality Index and Retail Sales Index. By early 2025 roughly two-thirds of clients had migrated to Kokai, with full adoption expected by year-end.

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