As AI reshapes the advertising landscape, companies like WPP face balancing human insight with machine-driven innovation to stay ahead in a rapidly evolving industry. Mark Venables heard from Stephan Pretorius, WPP’s Chief Technology Officer, at IBM’s AI for Business event.
In the rapidly evolving world of modern advertising, agencies face mounting pressure to navigate a fragmented media landscape while meeting client demands for measurable, personalised connections with consumers. Today’s agencies have moved beyond traditional roles, embracing data analytics, digital content creation, and cross-channel campaign management to stay relevant in an era defined by technology and changing consumer expectations.
Stephan Pretorius, Chief Technology Officer at WPP, one of the world’s leading advertising and marketing services firms, underscores the transformative potential of generative AI. “Generative AI will have a transformational impact across all professional services. This impact is not just about advertising; it is also changing the landscape for accounting, law, consulting, and journalism,” he says. “AI fundamentally redefines how we approach knowledge work, allowing us to create and innovate faster and more deeply. WPP has made a significant commitment, investing over $300 million annually, roughly two per cent of net sales, in AI solutions and products, positioning AI as a cornerstone of their future growth strategy.”
Beyond investment, WPP is building its AI capabilities through strategic acquisitions. “We acquired Satalia, an AI-focused company spun out of UCL, to boost our talent in this area,” Pretorius explains. “Partnerships with firms like IBM are critical, as they allow us to tailor AI and marketing tools for specific industry needs. While IBM focuses on AI for enterprise, we’re zeroing in on AI for marketing, where we can combine domain expertise and proprietary data to unlock immense value.”
A major focus for Pretorius is on AI’s creative potential, specifically in ideation. “AI’s power is not only in automating tasks but in enhancing human creativity,” he says. We are using agentic and reasoning frameworks to come up with ideas more quickly and creatively for our clients. This has a massive impact on the quality and volume of our work, allowing us to innovate at a scale we have not seen before.”
Protecting brand integrity in the AI era
While AI brings new creative possibilities, it also poses challenges around brand consistency and copyright. “For decades, brand consistency, copyright protection, and quality assurance have been core principles in our industry,” Pretorius explains. “The challenge with generative AI is maintaining these standards in an AI-driven environment.”
The starting point is crucial in the content supply chain. “When using AI-generated content, it is essential to begin with a model trained on copyright-compliant data,” Pretorius says. Models like Midjourney and Stable Diffusion might produce impressive results, but they are not commercially viable for large brands because of copyright issues. On the other hand, models from Adobe Firefly or Getty Images are built on licensed content, making them safer for enterprise use.”
He highlights the importance of choosing a suitable model and enforcing rigorous data governance. “We strictly partition client data to ensure it is used only for their benefit. Using L’Oréal’s data to train a model for Unilever would be an unacceptable breach of data governance,” he says. “Technologies like IBM’s watsonx provide critical tools for internal data guardrails, ensuring that client-specific data remains secure and ethically managed.”
Human oversight remains indispensable, especially in campaigns where AI directly interacts with consumers. Pretorius shares a notable example: “In our campaign for Mars with an AI version of José Mourinho, where consumers could engage directly, we had to put extremely tight guardrails in place to prevent potential issues. This direct consumer interaction requires vigilant oversight to protect both the brand and the user experience.”
The impact of AI on jobs and organisational structure
The impact of AI on jobs is a particularly complex and emotive issue. “AI will inevitably change how we work, allowing us to process information faster, explore ideas more efficiently, and move from concept to execution seamlessly,” Pretorius explains. But he stresses that AI doesn’t eliminate jobs; rather, it eliminates tasks. “AI transforms specific tasks within a role, leading to a natural evolution in job functions. It’s not about removing people from the equation but reshaping how they contribute.”
In recent years, WPP’s perspective on AI has evolved. Initially seen as a tool for productivity, AI is now viewed as a driver for growth. “If AI frees up 25 per cent of our team’s capacity, it does not mean we will reduce headcount by 25 per cent. Instead, it opens up expansion opportunities, allowing us to increase output and profitability,” Pretorius says. “AI is less about cost-saving and more about reinvestment and growth.”
For Pretorius, AI is a force that can fuel a “new renaissance of intellectual and creative thought.” He emphasises the need for widespread adoption across WPP. “If we don’t ensure broad-based AI adoption across levels and roles, we risk creating an ‘AI divide’ within our workforce,” he cautions. WPP has trained all employees on using AI in their roles to bridge this gap, granting access to foundational models and tools to enhance their work.
“Adoption takes time. Some people try tools like ChatGPT and stop, while others push further, experimenting with complex data-driven processes,” he observes. “As people continue using AI, they gain confidence and become more sophisticated, resulting in exponential personal and professional growth. Adoption cannot be imposed on an organisation; it requires individuals to engage, learn, and discover the technology’s potential.”
The future of WPP and the professional services industry
In Pretorius’s view, the integration of AI is set to reshape WPP’s business model. “Today, WPP is largely a people-based business. We sell time and projects to clients. In five years, however, we will be more of a blend of technology and services,” he predicts. This shift, he says, is already underway across the professional services sector as companies like S&P Global adopt more technology-driven models.
He anticipates that AI will enable WPP’s services to become more integrated. “AI will allow us to combine data from diverse sources and make conceptual leaps across domains, merging structured and unstructured data,” he explains. This means our service offering will be conflated and more holistic. The trend toward consolidating marketing partnerships will also accelerate, with clients seeking end-to-end solutions from single vendors rather than multiple agencies.
“Operational efficiency and data integration are key. It is inefficient to have 1,000 different ad agencies working on various functions when the underlying data needs to be consistent. Consolidation allows for more seamless data integration, making engaging with a single partner practical.”
This evolution will influence WPP’s organisational structure as well. “As we build more sophisticated AI and software platforms, we must break down internal silos,” he says. “We envision teams that blend marketing, data services, and AI tools to deliver a comprehensive approach. These multidisciplinary teams will work with advanced AI-driven platforms, enabling a new level of service that combines human insight with machine precision.”
Pretorius is enthusiastic about the future, seeing AI as an engine for both innovation and growth. “It is an incredibly exciting time to be in this industry. AI’s potential for creativity and operational improvement makes us optimistic about our capacity for innovation and the growth it can bring. The goal is to keep pace with AI developments and lead them, reshaping our business and setting new industry standards.”
Navigating the future of advertising
As advertising agencies adapt to rapid technological change, they face the challenge of balancing creativity with analytics, innovation with privacy, and performance with purpose. For companies like WPP, which are positioning themselves at the forefront of the AI revolution, there is a clear commitment to leveraging technology while preserving the human touch critical to effective marketing.
For WPP, embracing AI means more than just streamlining operations. It is about redefining their client relationship, offering integrated solutions that span strategy, data, and creative ideation. “AI’s real value lies not just in its operational benefits but in its ability to unlock creativity and intellectual growth,” Pretorius concludes. “We are entering a new era where AI is not just a tool but a partner in the creative process.”
This perspective reminds us that while technology may drive efficiency and scalability, the essence of impactful advertising remains rooted in human connection and insight. By marrying AI’s potential with deep industry expertise, agencies can continue creating powerful narratives that resonate with audiences, offering clients not only technological solutions but meaningful engagement and growth.
