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Stephanie Hummel
(Reuters) – Publicis, the world’s biggest advertising group by market capitalization, said on Thursday it would invest 300 million euros (326.94 billion euros) in artificial intelligence (AI) over the next three years as part of new plans to become “on top of the world” announced that it will invest $1,000,000. “Industry’s first AI-powered intelligent system.”
The group said in a film presentation ahead of its annual results in February that it will invest €100 million in 2024 alone, fully covered by “internal efficiencies” and dilute operating margins. He said there was no negative impact.
In a presentation, the maker of Heineken and Barilla pasta campaigns reported organic growth of 6.3% in 2023, above the guidance range of 5.5% to 6% shared in October.
“It was important for us to demonstrate to the financial markets that strategically we are starting from a position of strength,” Chief Executive Arthur Sadun said at a news conference of the early numbers.
Publicis said in its presentation that it plans to further integrate AI into its current platform model, connecting every individual within the company to an entity called “CoreAI,” with the group starting engineering in late 2023. He said he would start implementing it. First half of 2024.
“CoreAI is based on the data we have, but also on the data we have built over the past 10 years,” Sadun said.
Half of the investment in 2024 will be focused on upskilling, training and recruiting talent, while the other half will be on technology, licensing, software and cloud infrastructure.
When asked about future acquisitions, Sadun said, “Our transformation is over,” adding that the group will now focus less on investments in technology, intellectual property and talent.
Publicis’ recent strong performance bucks the overall slump in the advertising industry, which is seen as a harbinger of broader economic health.
(Reporting by Stephanie Hamel; Editing by Nick Zieminski)
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