Publicis Groupe SA has announced its intention to invest €300 million in artificial intelligence over the next three years.
The mentioned international advertising company, which is based in Paris, plans to spend €100 million on the specified goals in the current year. Artificial intelligence is a highly versatile technology in terms of the number of spheres of activity in which it can be used. AI has already become a tool in the advertising industry. The intention of the French-based company to invest in artificial intelligence is due to these circumstances.
Publicis plans to distribute the mentioned funding equally between technologies, including licenses, cloud infrastructure and software, and talented specialists through up-skilling and recruitment. The corresponding statement was made by the company on Thursday, January 25.
In the context of activities related to artificial intelligence, Publicis plans to take advantage of the 2.3 billion individual data profiles included in its ownership structure. These arrays of information are needed to train the Core AI technology platform, personalize campaigns, and solve tasks such as impact forecasting and adjust targeted audiences in real-time. Currently, many firms operating in the advertising industry are moving from an online cookie-based model to proprietary first-person data.
Arthur Sadoun, Chief Executive Officer of Publicis, said that the investment will be funded by improving efficiency and will have no dilutive impact on operational margin in 2024. The head of the firm also noted that from the point of view of the strategy related to artificial intelligence, it was important to demonstrate to the financial market that the relevant activity begins from a position of strength.
On Wednesday, January 24, the company’s share price increased by 1.6%, reaching a record high of 88.76 euros. The firm’s organic revenue growth in 2023 was 6.3%.
Publicis is currently the fourth-largest advertising and communication holding company in the world and the leader of the corresponding European market. The company was founded in 1926. The firm’s net profit for 2022 amounted to €1.22 billion.
Artificial intelligence in the advertising industry provides a space of opportunity. Modern advertising platforms based on machine intelligence offer thousands of variants of marketing concepts for a micro-segmented audience. Currently, advertisers have access to powerful artificial intelligence tools capable of solving many tasks, including generating virtually unlimited creative resources, scaling campaigns and budgets, and conducting thousands of tests.
An important advantage of machine intelligence is its ability not only to formulate ideas but also to create content. In this case, it is assumed that in the foreseeable future, artificial intelligence will be able to generate the concept of an advertising campaign and videos for its implementation. AI also ensures equality of opportunity. This means that artificial intelligence allows small companies to create marketing campaigns comparable in terms of scale and quality to what industry giants are doing in this direction.
As we have reported earlier, Apple Reportedly Makes Push to Bring AI to iPhone.