AI hires show that agencies are prioritizing data-driven leadership in the ‘new world’

Last month, WPP named Microsoft executive Cindy Rose as its new CEO. In April, Stagwell appointed its first chief AI officer, and Monks also recently did the same. IPG now has a global head of AI commerce, Yaniv Sarig, among its leaders. And Publicis Groupe is looking to make AI-focused acquisitions.

These appointments and strategies signal a sea change for ad agency holding companies — both legacy players and the so-called “disrupters” — as they embrace tech-and data-focused leadership to navigate the next wave of advertising transformation.

For newer holding companies like Stagwell, this evolution may come more naturally, according to John Kahan, its chief AI officer. But for companies traditionally rooted more in creative rather than tech, it may require not just upgrading, but “starting over” in certain areas of the business, says IPG Chief Commerce Strategy Officer Jeriad Zoghby, whom Sarig reports to.

The Current asked Kahan and Zoghby to unpack how agency holdcos are adapting in this new AI age and how companies across the spectrum are responding to fast-changing client demands and industry shifts.

“If you’re a traditional people-oriented company, regardless of the industry, you need to reexamine things,” Kahan tells The Current. “Those that have AI will win in the new world, and those that don’t will be left behind.”

What makes for a successful AI leader?

As a new crop of leaders takes on the challenges of AI across the ad industry, Kahan says that they should be thinking of their roles as a “cross between business and technology.”

“The best AI leaders need to recognize that this is as much about a business transformation as it is a tech transformation,” he says.

But, he adds, it’s important to make sure those around you are along for the ride: “You have to bring your employees along and your customers along on the journey with you.”

How can the traditional holdcos stay apace?

IPG’s internal steering committee of AI officers is “meeting constantly,” Zoghby says, to help “set the strategy for the company and make sure we’re moving in the right direction.”

“Things are moving so fast that you almost have to act like a startup: transparency, connectivity, speed,” he says. “You have to learn from each other constantly.”

He adds that a “two-speed strategy” is essential: One speed will be “large scale, top down and slower.” The other speed will be “more like a startup and very fast.”

“The companies that can move in both speeds will be successful,” Zoghby says. “The two-speed strategy is what you need during a disruptive cycle.”

And now, with the Federal Trade Commission recently approving IPG’s merger with Omnicom, the combined entity could strengthen the company’s tech and data competitiveness.

Why is IPG starting with commerce?

Part of Sarig’s remit as IPG’s global head of AI commerce will be to help brands get more bang for their buck from their AI investments — especially as retailers double down on AI tech.

“Retail media is a fantastic new growth for the retailer but a new cost for the CPG brands,” Zoghby says. “If the cost and scale doesn’t work, then they need a new solution.”

He adds that, as part of surveys of 40 C-suites across the CPG space, IPG found that the “urgency” for these solutions has increased in a short time.

“Two months ago, there was a recognition that they needed these AI solutions,” he says. “But when we went back in the last month, they needed them way faster. There’s immense pressure top down to not only implement generative AI, but also get ROI on it.”

How does data play a role?

Kahan says that “unique data is what fuels AI.”

At Stagwell, that includes sentiment data from The Harris Poll or entertainment data from NRG, he says.

IPG, meanwhile, acquired Intelligence Node in December, an e-commerce data company. According to Zoghby, intelligence from the company could help CPG brands “see the entire market, down to a store and product level, in real time.”

“They need to be able to act on that intelligently and then be able to activate that in real time,” he says. “We’re finally at a point where that stuff is possible.”