Artificial intelligence is rapidly transforming the advertising industry, with agencies using AI to create campaigns like Cadbury’s Bournvita featuring Rahul Dravid and Bic’s “One Bic, One Book, Two Classics” in Brazil. WPP, a leading agency group, invests £300 million annually in data, technology, and machine learning to stay competitive.
Mark Read, WPP’s CEO for nearly seven years, described AI as “fundamental” to the company’s future but acknowledged it will significantly alter the advertising workforce. He plans to leave WPP by the end of 2023 amid challenges from major tech companies entering the AI-driven advertising market.
For years, Google and Meta have dominated digital advertising, capturing nearly two-thirds of the UK’s £45 billion ad spend this year. Now, Meta plans to deploy AI tools by the end of 2024 that could fully automate ad creation and targeting on its platforms, raising fears of reduced creativity and widespread job losses among agencies.
Meta CEO Mark Zuckerberg described this shift as a “redefinition of the category of advertising,” suggesting a diminished need for traditional creative roles. Nonetheless, agencies like WPP, Publicis, and Omnicom are investing heavily in developing their own AI capabilities in collaboration with tech giants to retain clients.
Industry leaders expect AI to eliminate many production and execution roles, while strategy and consumer insight functions may be less affected. Stephan Pretorius of WPP emphasized that AI replaces tasks rather than entire jobs but acknowledged agencies must restructure and adapt client relationships accordingly.
Recently, WPP announced undisclosed global redundancies across its media division. Clients are increasingly pressuring agencies to leverage AI for cost reductions, complicating the industry’s landscape.
Despite AI advancements, the UK’s advertising workforce expanded to 26,787 employees in 2023, reflecting growth alongside rising ad spend since the 1930s. Many agencies believe that premium brands still require human creativity, as AI-generated ads often lack subtlety and originality.
Zuckerberg has since clarified Meta’s AI tools are primarily aimed at small and medium-sized businesses, with creative agencies expected to continue playing a key role for larger clients.
While Meta and Google highlight their platforms’ role in democratizing advertising access, some agency executives view their dominance as a threat. Sir Martin Sorrell previously described these tech firms as “frenemies”—both collaborators and competitors.
Patrick Garvey, co-founder of the independent agency We Are Pi, considers Meta’s AI ad automation a sign of outdated agency models becoming obsolete. He supports small businesses benefiting from AI but warns traditional agencies may struggle with the shift towards mechanized advertising production.