How AI violates the advertising industry

Artificial intelligence shakes the advertising business and “nerve” investors, an industry leader told CNBC.

“I think this violation of AI … nervous investors in every industry and totally violates our business,” Mark read the British Advertising Group outgoing CEO WpHe told Karen Tso on CNBC on Tuesday.

The advertising market is threatened by the emerging generative AI tools that can be used to materialize parts of a fast rate content. Over the last few years, there has been an increase in a number of AI image generators, including Openai, Google’s Veo and Midjourney Dall-E.

In his first interview, after announcing that he would withdraw as a WPP chief, Read said AI “will revolutionize our business completely.”

“AI will make all the world’s expertise available to everyone at an extremely low price,” he told London Tech Week. “The best lawyer, the best psychologist, the best radiologist, the best accountant and the really best advertising artists and marketing people will often be AI, you know, will be led by AI.”

Read said 50,000 WPP employees are now using WP Open, their own marketing platform powered by AI.

“This, in my opinion, is my inheritance in many ways,” he added.

Structural pressure on the creative parts of the advertising business is moving the consolidation of the industry, it also notes that it is noted, adding that companies will have to “accept” the way AI will affect everything – from the creation of briefs and media plans to optimization of campaigns.

A Report from Forrester Issued last June showed that over 60% of US advertising agencies already use generative AI, with another 31% saying that they were studying the use of technology.

Read are not alone in this opinion. Advertising undergoes a “huge transformation” due to the destructive effects of AI, French advertising giant Publicis Group’s Executive Director Morris Levy told the CNBC at the Viva Tech conference in Paris.

He noted that image tools and video generation of videos are dramatically accelerating content production, while automated communication systems can now achieve “customization in scale as never before”.

However, the Publicis chief stressed that AI should only be considered a tool that people can use to increase their lives.

“We should not believe that AI is more than an instrument,” he added.

And while AI is likely to affect some jobs, Levy ultimately thinks he will create more roles than she is destroying.

“Will I replace me AI and kill some jobs? I think AI, yes, will destroy some jobs,” Levi admitted. However, he added that “more importantly, AI will transform jobs and create more jobs. So the net balance will probably be positive.”

In his opinion, this would be in line with the impact of labor of previous technological inventions such as the Internet and smartphones.

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

However, Nicole Denman Green, an analyst at Gartner, warns the brands, should be cautious to cause a negative reaction from consumers who are skeptical of AI’s impact on human creativity.

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

“The connection of what AI can do for what it has to do in the ad,” Green told CNBC.

“What he has to do is help to create innovative insights, unique performance, to reach a diverse and niche audience, to press the boundaries of what the” marketing “is and to provide more differentiated, useful and appropriately personalized experience, including the fulfillment of the promise of hyper-per-poll.”