How AI disrupts the advertising industry

Artificial intelligence shakes up the advertising company and “disturbing” investors, said a leader in industry in CNBC.

“I think that this AI disturbance … annoying investors in all industries, and that completely disturbs our activities,” said Mark, the outgoing CEO of British Advertising Group WpKaren TSO of CNBC said on Tuesday.

The advertising market is threatened by emerging generative AI tools that can be used to materialize content with rapid pace. The last two years have seen the rise of a number of IA images generators, including Dall-E of Openai, Veo and Midjourney from Google.

In his first interview since the announcement that he would resign as a WPP boss, Read said that the AI ​​”will completely revolutionize our business”.

“The AI ​​will make all the expertise in the world available to everyone at an extremely low cost,” he said during the London Tech Week. “The best lawyer, the best psychologist, the best radiologist, the best accountant, and indeed, the best advertising creatives and marketing people will often be an AI, you know, will be motivated by AI.”

Read said that 50,000 WPP employees are now using WPP Open, the company’s own marketing platform by the company’s AI.

“It is, I think, my inheritance in many ways,” he added.

The structural pressure on the creative parties of advertising activity stimulates the consolidation of the industry, also noted, adding that companies should “adopt” the way in which AI would have an impact on the creation of memories and media plans to optimize campaigns.

A Forrester report Released in June of last year has shown that more than 60% of American advertising agencies already use a generative AI, with an additional 31% saying that they explored user cases for technology.

Reading is not alone in this point of view. Advertising undergoes a “enormous transformation” due to the disruptive effects of AI, giant of French advertising Publicis Group CEO Maurice Levy told CNBC at the Viva Tech conference in Paris.

He noted that IA image and generation of videos are considerably accelerating content production, while automated messaging systems can now achieve “large -scale personalization like never before”.

However, the chief of the publicis stressed that AI should not be considered as a tool that people can use to increase their lives.

“We must not believe that AI is more than a tool,” he added.

And although AI is likely to have an impact on certain jobs, Levy finally thinks that this will create more roles than it destroys.

“The AI ​​will replace me, and will IA kill jobs? I think AI, yes, will destroy jobs,” said Levy. However, he added that: “Most importantly, the AI ​​will transform jobs and create more jobs. The net balance will therefore probably be positive.”

This, he says, would comply with the impacts of the work of previous technological inventions as the Internet and smartphones.

“There will be more autonomous work,” added Levy.

However, Nicole Denman Greene, analyst at Gartner, warns that brands should be wary of provoking a negative reaction from skeptical consumers about the impact of AI on human creativity.

According to a September Gartner survey, 82% of consumers said that companies using generative AI should prioritize the preservation of human jobs, even if it means lower profits.

“Pivot of what AI can do to what it should do in advertising,” Greene told CNBC.

“What he should do is help create revolutionary information, a unique execution to reach various and niche audiences, repel what the` `marketing ” and offer more differentiated, useful and relevant personalized experiences, in particular to keep the promise of hyper-personalization.”