French-based advertising and public relations (PR) company Publicis has invested $326m (€300m) into generative AI (GenAI) as the technology is set to disrupt the industry.
Founded in 1926, Publicis is one of the oldest and largest media agencies in the world. It currently has around 75,000 employees.
The company stated that its investment into AI is part of a wider plan to become an “industry first” AI powered agency. Publicis has stated that the money has been sourced internally and that its new investment in AI is not expected to affect its operating margin.
The $326m will be spent over three years, with the first half of 2024 being dedicated to internally rolling out Publicis’ AI system and upskilling its staff.
GenAI has the potential to transform the advertising industry by creating more personalised advertising in real-time.
Using GenAI, advertisers can create a large-scale and targeted campaigns at a greatly reduced cost.
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Research and analysis company GlobalData forecasts that GenAI will be the fastest growing segment of the global AI market, surpassing revenues of $33bn and accounting for 10.2% of the overall AI market by 2027.
AI can also help advertisers manage and analyse huge swathes of data for personalised advertising. However, as generative AI becomes ubiquitous in advertising and PR the industry will need clear guidance on copyright infringement.