AI is disrupting the advertising business in a big way — industry leaders explain how

Artificial intelligence is making significant waves in the advertising sector, causing unease among investors, as highlighted by Mark Read, the outgoing CEO of WPP, during an interview with CNBC. "The disruption caused by AI is unsettling investors across all sectors, and it is profoundly altering our industry," Read remarked, noting that generative AI tools are emerging as formidable competitors by enabling the rapid creation of content. In recent years, various AI image generation technologies, such as OpenAI's DALL-E, Google's Veo, and Midjourney, have surged in popularity. During his first interview since announcing his departure from WPP, Read emphasized that AI is set to completely transform the advertising landscape. He claimed, "AI will democratize access to the world's expertise at an unprecedentedly low cost," suggesting that the top professionals in fields like law, psychology, radiology, and advertising may soon be powered by AI. Currently, around 50,000 employees at WPP utilize WPP Open, the company's proprietary AI-driven marketing platform, which Read considers a significant part of his legacy. He pointed out that the growing structural pressures within the creative aspects of advertising are pushing companies towards consolidation. As the industry evolves, firms will need to adapt to the influence of AI in developing briefs, planning media strategies, and optimizing marketing campaigns. A Forrester report from June of last year indicated that over 60% of U.S. advertising agencies are already leveraging generative AI, with an additional 31% exploring potential applications of the technology. This sentiment resonates with Maurice Levy, CEO of Publicis Groupe, who described the ongoing transformation in advertising as monumental. At the Viva Tech conference in Paris, he noted that tools for AI-generated images and videos are accelerating content production and that automated messaging systems are enabling unprecedented levels of personalization. Levy cautioned, however, that AI should be viewed as a tool to enhance human capabilities, not as a replacement. He acknowledged that while some jobs may be lost due to AI, the broader impact would likely be positive, creating new roles and transforming existing ones, much like previous technological advancements such as the internet and smartphones. Despite the optimistic outlook, Nicole Denman Greene, a Gartner analyst, urged brands to tread carefully. She pointed out that a significant majority of consumers—82% according to a recent Gartner survey—believe that companies using generative AI should focus on preserving human jobs, even at the cost of lower profits. Greene advised marketers to shift their focus from what AI can achieve to what it should accomplish, emphasizing the need for groundbreaking insights and unique executions that cater to diverse audiences, ultimately delivering more personalized and meaningful experiences.