Ad Agencies to Fall Behind as AI Advances, Barclays Says

Advertising firms are unlikely to keep up with the pace of change artificial intelligence is set to unleash, according to Barclays Plc analysts.

“AI will profoundly and irrevocably transform the industry,” Julien Roch and colleagues wrote in a note, forecasting lackluster sales growth rates over the next few years.

Barclays downgraded London-listed agency WPP Plc, as well as US peers Omnicom Group Inc and Interpublic Group ahead of their mooted merger. WPP shares fell as much as 3.5% while Omnicom and Interpublic both fell more than 2%.

Read: Advertising Agencies Fall as Barclays Cuts Ratings on AI Fears ...