Artificial intelligence (AI) in marketing in Europe - statistics & facts
The European Union has adopted the Artificial Intelligence Act (AI Act) in an attempt to mitigate risks posed by the looming proliferation of generative AI. The legislation entered into force on August 1, 2024, and regulates the usage of AI in a professional context. Various AI applications are classified based on the risk they pose to individuals. Early industry analyses estimate that most marketing activities will fall into the minimal-risk or limited-risk categories and will not be strongly regulated. On the other hand, the law will harmonize AI regulation in EU member states and will make AI-based cross-border marketing and advertising activities significantly easier.
Mark Read, the chief executive of WPP, called AI “fundamental to WPP’s business in the future” stressing that the holding had been investing in it for several years and that it had a track of helping WPP win new business. In early 2024, WPP announced its “AI focus,” ongoing annual investments of 250 million British pounds in data and technology to support their AI strategy that is based on numerous prominent partnerships, with Nvidia, OpenAI, or Microsoft, to name but a few.
Publicis first integrated AI into their activities in January 2018, when they entered an AI-centered partnership with Microsoft. In early 2024, the company announced an AI investment of 300 million euros in the years 2024 to 2026 with the aim to become “the industry's first AI-powered intelligent system.” Besides Microsoft, they cooperate with numerous AI players, such as Google AI, OpenAi, Vertex.ai, or ElevenLabs.
Mid-2024, Havas pledged to invest 400 million euros in data, tech as well as AI over the next four years. The agency leverages Adobe Firefly – creative generative AI models, using it to create content that is by design safe for commercial use.
However, the transformation is expected to have negative side effects. During a 2023 survey of ad professionals, more than 80 percent of respondents stated they believed AI posed a brand safety and misinformation risk for their organizations. Optimism seems to prevail, though. The European AI market is expected to grow at a compound annual growth rate of 35 percent between 2024 and 2029 and services, including advertising and marketing, accounted for roughly 11 percent of the total, or some 4.3 billion euros in 2024.
Home of market leaders
Of the advertising world's Big Five, two are headquartered in Europe: WPP in London, and Publicis Group in Paris. Additionally, France also harbors Havas – another giant of the industry, active in over a hundred countries worldwide. All three are betting heavily on AI to further their capabilities and stay competitive.Mark Read, the chief executive of WPP, called AI “fundamental to WPP’s business in the future” stressing that the holding had been investing in it for several years and that it had a track of helping WPP win new business. In early 2024, WPP announced its “AI focus,” ongoing annual investments of 250 million British pounds in data and technology to support their AI strategy that is based on numerous prominent partnerships, with Nvidia, OpenAI, or Microsoft, to name but a few.
Publicis first integrated AI into their activities in January 2018, when they entered an AI-centered partnership with Microsoft. In early 2024, the company announced an AI investment of 300 million euros in the years 2024 to 2026 with the aim to become “the industry's first AI-powered intelligent system.” Besides Microsoft, they cooperate with numerous AI players, such as Google AI, OpenAi, Vertex.ai, or ElevenLabs.
Mid-2024, Havas pledged to invest 400 million euros in data, tech as well as AI over the next four years. The agency leverages Adobe Firefly – creative generative AI models, using it to create content that is by design safe for commercial use.
Enthusiastic take-up
An early 2024 survey of advertising professionals indicated that nine out of 10 had already experimented with AI, and nearly 40 percent said that it was becoming embedded in their daily work. They did it mostly to boost operational efficiencies. Other reasons included gaining advantage over competitors and limiting expenses. Leading areas of application named in the same survey were problem-solving and automation, as well as content creation. The industry tends to think AI will radically transform digital advertising in the upcoming years.However, the transformation is expected to have negative side effects. During a 2023 survey of ad professionals, more than 80 percent of respondents stated they believed AI posed a brand safety and misinformation risk for their organizations. Optimism seems to prevail, though. The European AI market is expected to grow at a compound annual growth rate of 35 percent between 2024 and 2029 and services, including advertising and marketing, accounted for roughly 11 percent of the total, or some 4.3 billion euros in 2024.
