Top advertising firm Publicis Worldwide unveiled a new strategic initiative Thursday, outlining a substantial investment of €300 million ($326.94 million) in artificial intelligence (AI) over the next three years.
This move is part of the company's ambitious plan to establish itself as the inaugural AI-powered intelligent system within the industry.
During a film presentation preceding the annual results publication in February, Publicis shared its intention to allocate €100 million for the AI venture in 2024 alone.
Notably, this financial commitment is entirely self-funded through "internal efficiencies" and is projected to have no effect on the company's operating margin.
In the presentation, Publicis reported an organic growth rate of 6.3% in 2023, surpassing the earlier guidance range of 5.5% to 6% shared in October.
CEO Arthur Sadoun emphasized the importance of showcasing the company's strong starting position in the financial market. Publicis is considered to be one of the advertising world's Big Four.
Publicis' Future With 'CoreAI'
Publicis envisions integrating AI more deeply into its existing platform model, connecting everyone in the organization to a newly engineered entity named "CoreAI."
This initiative, which began in the second half of 2023, is slated for implementation in the first half of 2024.
"CoreAI is based on the data we have acquired, but also the one that we have built over this past decade," Sadoun explained during a press conference.
Half of the €300 million investment will be dedicated to upskilling, training, and recruitment efforts, while the remaining half will be allocated towards technology, licenses, software, and cloud infrastructure.
Responding to queries about potential acquisitions, Sadoun asserted that the company's transformation is now complete, indicating a shift in focus towards smaller investments in technology, intellectual property, and talent.
Editing by Katherine 'Makkie' Maclang