AI bets fuel Publicis growth as ad rivals fall behind

The head of Publicis says his company stands apart from rivals in successfully using artificial intelligence, announcing plans to pour another €1 billion into AI and data systems.

Arthur Sadoun, who runs the French advertising firm, told the Financial Times that most companies trying to use generative AI have come up short. While everyday people have picked up the technology “faster, cheaper and better,” he explained that “AI at enterprise level is very difficult to scale.”

Investment in technology drives revenue growth

“Getting ahead of the curve on AI tools for customers has helped Publicis grow while other advertising businesses have gotten smaller”, Sadoun said. He pointed out the company has put roughly €14 billion into data and technology over the last ten years.

“On media and creative you see a real gap now between the ones that have the capabilities, model and talent to actually deliver AI . . . and the ones that don’t,” he said. “Since the rise of Gen AI three years ago, the growth model we have built means artificial intelligence is not a headwind for Publicis but a strategic driver of growth and margin expansion.”

The company shared its 2025 numbers on Tuesday, showing revenue jumped 8.5 percent to reach €17.4 billion. On an organic basis, which excludes the impact of acquisitions and currency fluctuations, revenue grew by 5.6 percent. Money coming in after expenses went up 10.6 percent to €2 billion. Looking ahead to 2026, Publicis expects revenue to keep climbing between 4 percent and 5 percent.

Sadoun said every part of the world where Publicis operates turned in “solid results at a time when our main competitors are expected to be negative overall.” He promised the company would bring in close to $1 billion in extra revenue next year while also boosting profit margins. This momentum was bolstered by significant new business wins in 2025, including global accounts for brands such as Coca-Cola, Mars, and LinkedIn.

Company adds thousands of jobs despite AI adoption

Many people working in advertising worry that AI will take over traditional jobs in creating ads and deciding where to run them across different platforms. But Sadoun said Publicis brought on about 5,000 new workers last year, “which is very different from the rest of the industry.” The company confirmed its total headcount reached approximately 114,000 employees by the end of 2025 following these hires.

The company plans to put “another billion in new capabilities” into the business this year, he added.

“The reality is, because we are growing we are creating jobs,” he said. “When you add roughly a billion dollars more revenue every year, it gives you the means not only to retain but to attract talent. What is interesting is our hiring rate is smaller than our growth rates, which means that we are creating operating leverage.”

Publicis holds the position as the largest ad agency globally, even after two American competitors, Omnicom and IPG, joined forces last year. The combined company and Publicis now have similar market values.

Sadoun said the advertising world has basically shrunk down to two big players “with about 80 per cent of the total market cap of our industry.”

“For investors, you’re going to see two very different strategies. First, us that wants to prioritise transformative growth . . . and Omnicom that is more about legacy asset consolidation at this stage,” he said.

The remarks highlight how AI has become a dividing line in the advertising business. While some companies struggle to make the technology work at a large scale, Publicis claims to have figured out how to use it to grow revenue and hire more people rather than cut costs and eliminate jobs.

The billion-euro investment Sadoun announced will go toward building up areas like AI systems and data operations, continuing a decade-long push to transform the company through technology. That strategy appears to be paying off as Publicis reports strong growth while competitors face challenges.

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