Google AI Updates: Enhancing Performance Max Campaigns with Smarter Image Generation

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In the fast-paced world of digital advertising, staying ahead of the curve is crucial. Google is once again stepping up its AI capabilities, introducing new updates to its Performance Max campaigns that promise to revolutionise ad creation and optimisation amongst the first of many Google AI updates rolling out in 2025.

Among the most notable enhancements are improved AI-generated images, better audience-specific recommendations, and advanced testing for ad elements. These updates aim to provide advertisers with more effective tools to refine their campaigns and enhance audience engagement.

Enhanced AI-Generated Images for Performance Max

One of the standout improvements in Google AI updates is the advancement in AI-powered image generation. While Google first introduced AI-generated assets for Performance Max campaigns last year, the latest updates bring significant refinements—particularly in the rendering of human characters.

Using Imagen 3, Google’s sophisticated image-generation model, advertisers can now create images featuring adult people and recognisable human faces across various campaign types, including Performance Max, Demand Gen, Display, and Apps. This improvement ensures a more realistic and high-quality depiction of people, addressing previous challenges where AI-generated humans often appeared distorted or unrealistic.

Google has emphasised that it has conducted extensive user research to refine this process, ensuring the generated images align with audience expectations. Research suggests that incorporating people in ads can significantly enhance emotional engagement, leading to better conversion rates. By offering high-quality, AI-generated human imagery, Google is providing advertisers with an opportunity to create more compelling visual content that resonates with their target audiences.

Ethical Considerations and Limitations

While this update unlocks new creative possibilities, Google has also implemented several restrictions to maintain ethical AI use. Advertisers cannot generate images of prominent public figures, including politicians and celebrities, or any depictions of children and minors. Additionally, sensitive content remains restricted. To maintain transparency, all AI-generated images will be tagged with SynthID, ensuring that viewers can identify which assets have been created using AI technology.

These measures help balance innovation with responsibility, ensuring AI-generated content does not mislead users or violate ethical advertising standards.

New Asset-Audience Recommendations

Beyond improved image generation, Google is also introducing asset-audience recommendations, a feature designed to help advertisers fine-tune their visual content. This update provides insights into which themes, elements, and imagery are most effective in engaging target audiences.

By analysing user behaviour and response patterns, Google’s AI will suggest creative adjustments to maximise engagement and conversion rates. This means advertisers can gain valuable inspiration for their campaigns, ensuring their visuals align more closely with audience preferences. Whether it’s adjusting colour schemes, emphasising specific imagery, or incorporating certain styles, these recommendations can provide a strategic advantage.

Optimised Ad Element Testing

Another significant development in Google AI updates is the introduction of a beta experiment for retailers running Performance Max campaigns with product feeds. This feature is particularly useful for those who have yet to upload additional creative assets.

Previously, Google allowed advertisers to test the impact of various changes, such as URL expansions, within their campaigns. Now, the new beta feature enables retailers to compare the effectiveness of adding different creative elements—including text, images, and videos—versus running campaigns without additional assets.

For businesses that may struggle with creative development, this automated approach could prove invaluable. Google’s AI leverages internal advertising data to generate and recommend specific creative elements that are likely to resonate with the intended audience. By testing these recommendations, advertisers can determine which combinations work best to optimise performance.

The Future of AI-Driven Advertising

With these AI-driven updates, Google is making it easier than ever for advertisers to create high-performing campaigns with minimal effort. The integration of AI-generated human imagery, tailored audience recommendations, and enhanced asset testing means brands can improve engagement and conversion rates while reducing the time spent on manual optimisation.

However, as with any AI-powered tool, advertisers should remain mindful of quality control and ethical considerations. While Google’s AI is designed to improve creative output, human oversight is still necessary to ensure brand alignment and authenticity.

Partnering with Experts for Success

As digital marketing becomes increasingly AI-driven, staying ahead of the competition requires expertise in leveraging these cutting-edge tools. Businesses looking to maximise their advertising efforts should consider partnering with an agency that stays up to speed with the latest technological developments—including those from META and Google. A knowledgeable agency can help navigate these AI advancements, ensuring brands harness the full potential of AI-powered advertising while maintaining ethical and strategic alignment.

By combining AI innovation with expert strategy, businesses can unlock new levels of success in their digital marketing campaigns.