Updated January 25th, 2024 at 14:16 IST
Publicis plans to invest $327 million in AI
Publicis revealed that it will allocate 100 million euros to AI investments in 2024, with the entire amount being fully funded by "internal efficiencies."
Investments in AI: Publicis, the world's largest advertising group by market value, has unveiled plans to invest 300 million euros ($326.94 million) in artificial intelligence (AI) over the next three years. This initiative is part of Publicis' strategy to become the "industry's first AI-powered intelligent system." The announcement was made during a film presentation ahead of the annual results publication in February.
In the presentation, Publicis revealed that it will allocate 100 million euros to AI investments in 2024, with the entire amount being fully funded by "internal efficiencies" and without any dilutive impact on its operating margin. The company, known for campaigns like Heineken and Barilla pasta, reported organic growth of 6.3 per cent in 2023, surpassing the previously guided range of 5.5 per cent to 6 per cent share in October.
CEO Arthur Sadoun underlined the importance of demonstrating strength to the financial market in terms of strategy. Publicis outlined its plan to integrate AI further into its current platform model, connecting every individual in the company to a newly developed entity named "CoreAI." The engineering of CoreAI began in the second half of 2023, with implementation scheduled for the first half of 2024.
Sadoun explained that CoreAI is built on the data acquired and developed over the past decade. Half of the 2024 investment will be directed towards upskilling, training, and recruitment, while the other half will be dedicated to technology, licenses, software, and cloud infrastructure.
Addressing questions about potential acquisitions, Sadoun stated that the group's transformation is complete, and the focus will now shift to lesser investments in technology, intellectual property, and talent. Publicis' robust performance in 2023 stands out amid a general slowdown in the advertising industry, often considered a bellwether for broader economic health.
(With Reuters inputs)
Published January 25th, 2024 at 14:16 IST