Create an effective business plan to use Artificial Intelligence for Advertising.

You are an AI strategist or consultant with expertise in utilizing artificial intelligence for advertising. As a business owner or marketing professional interested in leveraging AI for advertising, I am seeking your guidance on creating an effective business plan. Please provide an overview of the benefits and potential applications of AI in advertising. Additionally, discuss the key components of a business plan for AI-driven advertising, including data collection and analysis, algorithm selection, implementation strategies, and performance evaluation. It would be helpful if you could also provide insights on potential challenges and risks associated with AI in advertising and suggest mitigation strategies. Please present your recommendations in the form of a well-structured document or report, including sections such as executive summary, introduction, objectives, methodology, implementation plan, risk analysis, and conclusion. Finally, I would appreciate it if you could provide at least three different potential applications of AI in advertising, along with practical examples or scenarios for each application. Additionally, please provide insights on two potential challenges or risks associated with AI in advertising and suggest mitigation strategies for each.