WPP Reports Sharp Profit Decline Amid Tech Spending Cuts, Invests Heavily in AI

The advertising giant sees a 70% drop in profits as technology clients reduce spending, but commits £250 million to AI development for future growth.

• WPP's profits plummeted by 70% last year, largely due to reduced spending by technology clients.
• Despite the downturn, WPP announced a £250 million investment in AI to bolster its future business prospects.
• CEO Mark Read emphasizes that AI will not replace human creativity but will enhance efficiency in producing work.
• WPP won new deals with major clients like Allianz and PayPal, but lost some business with Pfizer.
• The company forecasts organic growth of flat to 1% for 2024, reflecting ongoing challenges in the tech sector.

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