TikTok Shop is transforming its advertising model with a bold TikTok AI mandate. Starting September 1, 2025, all brands must use GMV Max, an AI-powered tool, to promote products. This shift aims to streamline campaign management and boost returns. However, it sparks mixed reactions, especially among larger brands.
TikTok AI Mandate: Automation and Opportunities
Introduced in 2024, GMV Max automates ad campaigns for TikTok Shop advertisers. The TikTok AI mandate requires brands to adopt this tool, which optimizes sales performance. While small businesses embrace its efficiency, some bigger brands worry about losing control. Here are key details of the mandate:
- Mandatory Use: All TikTok Shop advertisers must use GMV Max starting September 1, 2025.
- AI-Driven Management: Brands set products, budgets, and ROI goals; the AI handles targeting and ad placement.
- ROI Protection: TikTok offers ad credits if campaigns fall below 90% of the target ROI.
- No Manual Control: Unlike Meta and Google’s optional AI tools, GMV Max is mandatory.
The TikTok AI mandate simplifies advertising for small businesses, with 171,000 SMBs globally joining TikTok Shop in 2024. Yet, major brands like Maybelline and Philips express concerns over transparency and control. The tool’s “black box” nature limits visibility into targeting and performance data, challenging complex strategies.
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TikTok’s move aligns with industry trends, as platforms like Google push AI solutions. However, the mandatory approach and fast timeline set TikTok apart. The company delayed the mandate from July to September after feedback, showing some flexibility. Small merchants report sales gains, but larger advertisers demand consistent results.
The TikTok AI mandate could reshape social commerce. Small businesses benefit from automation, while big brands must adapt to stay competitive. By prioritizing efficiency and ROI, TikTok aims to lead the future of AI-driven advertising.
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