Meta Platforms Inc. ( META ) shares are trading higher Monday following reports that the company is preparing to launch a fully automated ad creation system powered by artificial intelligence by the end of 2026.

What To Know: The move marks a significant step in CEO Mark Zuckerberg's broader strategy to expand the company's AI capabilities and transform how brands create and deliver advertisements.

According to The Wall Street Journal, the planned system will allow businesses to upload a product image and define a budget, after which Meta's AI will handle the rest, generating visuals, videos and ad copy, selecting the target audience on Facebook and Instagram and even recommending budget adjustments. The system is also expected to tailor ad content in real time based on user-specific data such as location.

This represents a major evolution from Meta's current tools, which already use AI to produce minor variations of ads and optimize targeting. Meta has also launched an "Early Release" program, giving select advertisers early access to its generative AI tools, which are already delivering positive results.

While the shift toward full automation has raised concerns among some large brands about losing control over messaging and strategy, Meta's advertising business continues to perform strongly. In its most recent earnings report, the company noted a 5% increase in ad impressions and a 10% rise in average price per ad year-over-year.

The broader context includes trade and policy uncertainty, including potential impacts from President Donald Trump's newly announced tariffs, which could affect ad budgets across the tech sector. Nevertheless, Meta's push into AI-driven ad solutions may help the company and its clients adapt to evolving economic and regulatory conditions.

META Price Action: Meta shares were up 3.74% at $671.88 at the time of writing, according to Benzinga Pro.

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