Advertising giant WPP Plcsaid it plans to spend about $318 million (~€294 million) annually to invest in new technologies, such as AI (artificial intelligence), in an effort to boost sales.
The London-based company said this year that revenue, excluding carryover costs, would be flat or up 1% from last year. It also forecast growth of 0.9% for 2023, matching the company.
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“We are already empowering our people with AI-powered tools to increase their skills, produce work more efficiently and improve media performance. All of this will help to increase the efficiency of our work,” said CEO Mark Read. “We also see opportunities to offer our customers new AI- powered products and services and achieve further growth in areas such as manufacturing.”
The news follows a similar announcement from rival Publicis Groupe SA, which said it would invest $327 million (~€302 million) over the next three years in artificial intelligence, including €100 million in 2024. This new technology is increasingly being used in the advertising industry.
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WPP has also restructured its fixed brand business to save costs. These moves will cost around £125m in 2024 but will deliver annual savings by 2025. In addition, WPP estimates it will save around £175m from “efficiency opportunities” in other parts of its business.
Source: bloomberg.com
