AI is disrupting the advertising business in a big way — industry leaders explain how

Artificial quality is shaking up the advertizing concern and "unnerving" investors, 1 manufacture person told CNBC.

"I deliberation this AI disruption ... unnerving investors successful each industry, and it's wholly disrupting our business," Mark Read, the outgoing CEO of British advertizing radical WPP, told CNBC's Karen Tso connected Tuesday.

The advertizing marketplace is nether menace from emerging generative AI tools that tin beryllium utilized to materialize pieces of contented astatine accelerated pace. The past mates of years has seen the emergence of a fig of AI representation generators, including OpenAI's DALL-E, Google's Veo and Midjourney.

In his archetypal interrogation since announcing helium would measurement down arsenic WPP boss, Read said that AI is "going to wholly revolutionize our business."

"AI is going to marque each the world's expertise disposable to everybody astatine highly debased cost," helium said astatine London Tech Week. "The champion lawyer, the champion psychologist, the champion radiologist, the champion accountant, and indeed, the champion advertizing creatives and selling radical often volition beryllium an AI, you know, volition beryllium driven by AI."

Read said that 50,000 WPP employees present usage WPP Open, the company's ain AI-powered selling platform.

"That, I think, is my bequest successful galore ways," helium added.

Structural unit connected originative parts of the advertisement concern are driving manufacture consolidation, Read besides noted, adding that companies would request to "embrace" the mode successful which AI would interaction everything from creating briefs and media plans to optimizing campaigns.

A report from Forrester released successful June past twelvemonth showed that much than 60% of U.S. advertisement agencies are already making usage of generative AI, with a further 31% saying they're exploring usage cases for the technology.

Read is not unsocial successful this view. Advertising is undergoing a "huge transformation" owed to the disruptive effects of AI, French advertizing elephantine Publicis Groupe's CEO Maurice Levy told CNBC astatine the Viva Tech league successful Paris.

He noted that AI representation and video procreation tools are speeding up contented accumulation drastically, portion automated messaging systems tin present execute "personalization astatine standard similar ne'er before."

However, the Publicis main stressed that AI should lone beryllium considered a instrumentality that radical tin usage to augment their lives.

"We should not judge that AI is much than a tool," helium added.

And portion AI is apt to interaction immoderate jobs, Levy yet thinks it volition make much roles than it destroys.

"Will AI regenerate me, and volition AI termination immoderate jobs? I deliberation that AI, yes, volition destruct immoderate jobs," Levy conceded. However, helium added that, "more importantly, AI volition alteration jobs and volition make much jobs. So the nett equilibrium volition beryllium astir apt positive."

This, helium says, would beryllium successful keeping with the labour impacts of erstwhile technological inventions similar the net and smartphones.

"There volition beryllium much autonomous work," Levy added.

Still, Nicole Denman Greene, expert astatine Gartner, warns brands should beryllium wary of causing a antagonistic absorption from consumers who are skeptical of AI's interaction connected quality creativity.

According to a Gartner survey from September, 82% of consumers said firms utilizing generative AI should prioritize preserving quality jobs, adjacent if it means little profits.

"Pivot from what AI tin bash to what it should bash successful advertising," Greene told CNBC.

"What it should bash is assistance make groundbreaking insights, unsocial execution to scope divers and niche audiences, propulsion boundaries connected what 'marketing' is and present much marque differentiated, adjuvant and applicable personalized experiences, including present connected the committedness of hyper-personalization."