France's Publicis says AI drives its growth, raises yearly forecast again

By Leo Marchandon and Noemie Naudin (Reuters) -French advertising firm Publicis on Monday raised its full-year organic growth forecast for the second time, highlighting artificial intelligence products as its main growth driver.  "It is artificial intelligence that allows us to accelerate our clients' growth and to accelerate our own," CEO Arthur Sadoun said in a press call, noting continued strength in client spending and marketing budgets. At a time when doubts swirl over whether AI is more hype than substance, Publicis argues that it can only bring benefits when put to use in the right structure. The company reported that 73% of its operations are now AI-powered, emphasizing that it is about having the data and the technology to extract the most out of AI. "AI alone does not work," Sadoun said. "One must never forget that if you do not have the right foundations in technology and data, artificial intelligence does not work." Since 2015, Publicis has invested 12 billion euros ($12.7 billion) in data, technology and AI, enabling the firm to monitor consumer behavior across more than 4 billion individuals globally and individualize advertising strategies accordingly. Sadoun said the advertiser retained 98% of its "top 100" clients over the past five years and won significant market share from its competitors because of AI-powered services. In the third quarter, Publicis posted 5.7% net revenue organic growth, contributing to $6 billion in net new business for the nine-month period.  Over the same period, competitors such as WPP, Omnicom, Dentsu and Interpublic have either flatlined or declined, according to JPMorgan data. New business wins this quarter included companies such as PayPal, Paramount Skydance and Orange. The company upgraded its 2025 organic growth forecast to "rock solid 5%, aiming for 5.5%" from its previous target of "close to 5%."     (Reporting by Leo Marchandon and Noémie Naudin; Editing by Lisa Shumaker)

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