Artificial Intelligence is Fundamentally Transforming the Advertising Industry

Artificial intelligence is fundamentally transforming the advertising industry, creating a wave of concern among investors, as highlighted by industry leaders in a recent CNBC interview.

Mark Read, the outgoing CEO of WPP, a leading British advertising group, made a bold statement, saying that, “This AI disruption is unsettling investors across all sectors and completely reshaping our business landscape.” 

In his first interview following the announcement of his resignation, Read asserted that AI will not just innovate but revolutionize the advertising realm. He explained how this technology will democratize expertise.

This will make the skills of top professionals in fields like law, psychology, radiology, accounting, and even the most talented advertising creatives, accessible to all at remarkably low costs. Impressively, WPP has integrated AI into its operations, with 50,000 employees relying on the company’s AI-powered marketing platform, WPP Open. 

“This, I believe, defines my legacy in many respects,” Read asserted. Moreover, Read emphasized that creative sectors within the advertising industry face mounting structural pressures, which are propelling consolidation throughout the field. 

To thrive, companies must embrace the seismic changes brought about by AI, influencing everything from crafting briefs and media plans to fine-tuning campaigns. A revealing report by Forrester, published last June, showed that over 60% of U.S. advertising agencies have already harnessed the power of generative AI, with another 31% actively exploring its potential.

According to Read, the rapid pace of production enabled by AI image and video generation tools is groundbreaking. Automated messaging systems are now delivering unprecedented levels of personalization. 

However, Maurice Levy, CEO of Publicis, urges caution, reminding us that AI should be seen primarily as a tool to enhance human potential. Acknowledging the inevitable job losses that may occur, he also believes that AI is poised to create even more opportunities. 

“Will AI replace some jobs? Yes, it might,” Levy stated. “But fundamentally, AI will transform roles, generate new jobs, and lead to a net positive impact, similar to the effects we observed with past technological breakthroughs like the internet and smartphones.”

Levy expects an increase in autonomous work as a result of these advancements in AI. Yet, it’s crucial for brands to tread carefully. Nicole Denman Greene, an analyst at Gartner, warns that consumers may react negatively to brands that appear to undervalue human creativity in favor of AI. 

A Gartner survey from September revealed that a staggering 82% of consumers believe companies employing generative AI should prioritize preserving human jobs, even if this approach might affect profits.

“We must pivot from merely considering what AI can do to what it responsibly should do in advertising,” Greene advised. “AI should pave the way for groundbreaking insights, deliver unique strategies to engage diverse and niche audiences, challenge traditional marketing boundaries.”

HE also added that, “AI should offer brand-specific, valuable, and relevant personalized experiences, fulfilling the promise of hyper-personalization.” In summary, the call to action is clear, embrace AI not just as a tool, but as a pivotal opportunity to elevate the standards of creativity and effectiveness in the advertising industry. However, respect the human aspect that lies at its core.