Havas Pivots to AI-First, Augmenting Human Ingenuity for Client Value - Episode Hero Image

Havas Pivots to AI-First, Augmenting Human Ingenuity for Client Value

The CMO Podcast · · Listen to Original Episode →
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TL;DR

  • Havas is pivoting to an AI-first company, investing €600 million in data, tech, and AI, with a commitment of another €400 million, to disrupt the industry and deliver greater client value.
  • Agencies leveraging AI will displace those that do not, but human ingenuity remains critical for creating campaigns that drive value and build brand preference.
  • Havas's AVA platform integrates AI models and knowledge across its network, enhancing human-led creativity and decision-making while prioritizing security, compliance, and privacy.
  • The company trains all 23,000 employees on AI, requiring leadership certifications to ensure proficiency and an AI-first mindset, preventing the traditional digital/offline divide.
  • AI enables significant cost reductions in production, with Havas achieving 15-50% savings for clients like Renault and L'Oréal by utilizing AI-generated assets.
  • Generative AI is creating opportunities for "synthetic research" through AI-generated personas, like Verve's neurodivergent Gen Z models, to gain deeper consumer insights faster.
  • Brands are becoming even stronger in the AI era by providing trust in an uncertain information landscape, provided they maintain solid foundations and authentic purpose.

Deep Dive

The integration of Artificial Intelligence into the marketing and communications industry presents a profound transformation, not merely an incremental change. Yannick Bolloré, CEO of Havas, posits that AI offers an unprecedented opportunity for disruption and value creation, necessitating a proactive, human-centered approach to harness its potential while mitigating inherent risks. This requires a fundamental shift in operational strategy, talent development, and client engagement, positioning agencies that effectively leverage AI to replace those that do not.

The core of Havas's strategy revolves around embedding AI deeply within its organization, not as a replacement for human ingenuity, but as a powerful enhancer. Bolloré emphasizes that AI should serve as a "thought partner" rather than just an assistant, augmenting human creativity, judgment, and decision-making. This human-led AI vision is supported by significant investment in data, technology, and AI capabilities, including the launch of AVA, a proprietary global LLM portal. AVA acts as an integrated operating system, connecting AI models across the Havas network, providing access to the company's knowledge base, and enabling the creation of personalized content at scale. The implication is that AI will democratize advanced capabilities, allowing for more efficient and effective production, media planning, and client strategy development, ultimately creating asymmetric value for clients.

However, this transformative potential is accompanied by significant threats that demand careful management. Bolloré highlights the risk of job displacement, emphasizing Havas's commitment to retraining its 23,000 employees to become AI experts and absorb growth without new hires. He also addresses the critical issue of AI hallucinations, stressing the need for robust prompt engineering, critical thinking, and continuous learning to ensure accuracy and reliability, particularly in client-facing applications. Furthermore, data privacy is identified as a paramount concern, underscoring the necessity of secure, compliant AI solutions like AVA to safeguard client data. The implication is that navigating these risks successfully will be a key differentiator for agencies, with those that prioritize security and ethical AI deployment building greater client trust.

The future of the industry hinges on agencies' ability to integrate AI-driven capabilities with human ingenuity and client-centricity. Bolloré foresees AI not as a force that diminishes brands, but strengthens them by providing trust in an increasingly uncertain information landscape. Havas's investment in synthetic research tools, such as generative AI personas from Verve, exemplifies a commitment to deeper client understanding and smarter campaign testing. Ultimately, the successful adoption of AI will be measured by an agency's capacity to connect smart production, media, and customer experience, delivering personalized content and driving client growth. This requires a culture of curiosity, humility, and continuous reinvention, ensuring that technological advancements amplify, rather than overshadow, human talent.

Action Items

  • Create AI proficiency certification: Require all 150+ leaders to pass an AI proficiency certification before attending the next leadership meeting.
  • Implement generative engine optimization (GEO): Develop and train teams on GEO strategies to analyze and optimize AI tool outputs, mitigating hallucination risks.
  • Design AI-driven persona testing: Build generative AI personas to test campaign effectiveness and gather insights, focusing on neurodivergent Gen Z demographics.
  • Audit AI production costs: Analyze AI-driven production costs, aiming to reduce expenses by 15-50% for clients like L'Oréal and Renault.
  • Develop AVA portal integration plan: Outline a phased rollout plan for the AVA portal, integrating data, media, and CX assets for enhanced client collaboration.

Related Episodes

Key Quotes

"Hi, I'm Jim Stengel. I've helped hundreds of major brands discover and activate their purpose because when a brand's purpose is clear, compelling, and authentic, profit naturally follows. Each week, I welcome the CMOs, the Chief Marketing Officers of your favorite brands, to speak to how their job is so much more than marketing."

Jim Stengel introduces his role as a facilitator for brand purpose and highlights that the podcast features Chief Marketing Officers discussing their broader responsibilities beyond traditional marketing. This sets the stage for exploring how leadership and strategy intersect with marketing.

"At CES, or the Consumer Electronics Show, which happens every year in January in Las Vegas, the conversation around AI often swings between hype and fear. But the most important question for marketers is far more grounded: How do you scale intelligence, creativity, and performance without losing the human connection that brands are built on?"

Jim Stengel frames the central challenge at CES, noting that while AI discussions can be extreme, the core marketing question is about balancing technological advancement with maintaining human connection. This highlights the episode's focus on practical AI application for brands.

"Actually, my first experience with AI was 15 plus years ago. I was sitting in my living room with my laptop, checking on the website. And I was just starting my career at Havas in advertising. And my wife just joined me. She checked on the same website and we had different ads."

Yannick Bolloré recounts his early encounter with AI through personalized advertising, illustrating how AI's ability to tailor content to individuals was evident even in the early stages of programmatic buying. This personal anecdote grounds the discussion in a relatable experience.

"And AI became much more than an assistant, it became a thought partner. And you know, when you're the CEO of a company, sometimes you're alone and you don't really know how to articulate your thinking, how to develop a clear vision for the future. And using AI as a thought partner has changed my life."

Yannick Bolloré explains how AI evolved from a simple assistant to a valuable "thought partner" for him as a CEO. He emphasizes its utility in articulating complex ideas and shaping future vision, particularly in moments of solitude.

"Start early, think bold and shape the rules."

Yannick Bolloré shares a key lesson learned from a collaboration with LVMH for the Paris Olympics. He presents this as a guiding principle for embracing new technologies like AI, advocating for proactive risk-taking and strategic rule-setting.

"What I wanted to make sure with AI, what we wanted to make sure with AI is to make sure that everyone, every 23,000 employees at Havas were fully trained around AI."

Yannick Bolloré details Havas's strategy for integrating AI, emphasizing the importance of comprehensive training for all employees. This approach aims to avoid the fragmentation seen during the digital revolution and ensure a unified understanding and application of AI across the organization.

"Brands, I mean, as long as they have great CMOs and great foundations, solid foundations, brands bring trust. And I think in the world where you don't know what's true or not, to be able to trust your brand will be even stronger."

Yannick Bolloré asserts that in an era of uncertainty and misinformation, strong brands, guided by capable CMOs and built on solid foundations, are crucial for providing trust. He suggests that this inherent trust will become even more valuable as AI proliferates.

"And what you're going to see right now is just from a picture. So I think my team, if I'm correct, they just took a picture of you like 20 minutes ago. They took a picture of you. And you are all marketing professionals. So please see what you can do in 15 minutes from just a picture to a movie."

Yannick Bolloré introduces an AI-powered demonstration, explaining that a movie trailer was created from a single photograph in a short timeframe. He highlights the rapid advancements in AI production capabilities and their potential impact on creative processes.

Resources

External Resources

Books

  • "The Age of AI: And Our Human Future" by Henry Kissinger, Eric Schmidt, and Daniel Huttenlocher - Mentioned as a source of reflection on AI's impact.

Articles & Papers

  • "The Age of AI" (Source not specified) - Mentioned in relation to the broader conversation around AI.

People

  • Yannick Bolloré - Chairman and CEO of Havas, discussed AI's impact on the industry and Havas's approach.
  • Jim Stengel - Host of the CMO podcast, discussed applying AI in marketing and brand strategy.
  • Henry Kissinger - Co-author of "The Age of AI: And Our Human Future."
  • Eric Schmidt - Co-author of "The Age of AI: And Our Human Future."
  • Daniel Huttenlocher - Co-author of "The Age of AI: And Our Human Future."
  • Marisa - CEO of Wunderman Thompson, mentioned in relation to proof of concepts for AI.
  • Dan Hegen - Chief Data and Tech Officer at Havas, involved in designing AI tools and products.
  • Mark Pritchard - Mentioned as having spoken at Cannes about brands.
  • Chat - Founder of Verve, a company creating generative AI personas.

Organizations & Institutions

  • Havas - Global communications group, discussed its AI strategy, investments, and new platform Ava.
  • CES (Consumer Electronics Show) - Annual event in Las Vegas where the episode was recorded.
  • Siemens - Mentioned for their 3D printing of recycled materials.
  • Disney - Mentioned in relation to Siemens' 3D printing work.
  • Flint - Paper battery company, mentioned as an example of innovation.
  • LVMH - Mentioned for their collaboration with Havas for the Paris Olympics.
  • Omnicom - Mentioned as a competitor in the advertising industry.
  • WPP - Mentioned as a competitor in the advertising industry.
  • Pro Football Focus (PFF) - Mentioned as a data source for player grading.
  • New England Patriots - Mentioned as an example team for performance analysis.
  • NFL (National Football League) - Primary subject of sports discussion.
  • Wunderman Thompson - Mentioned in relation to AI proof of concepts.
  • Rakuten - Client of Havas, mentioned for AI-driven cost reduction in production.
  • L'Oréal - Client of Havas, mentioned for AI-driven cost reduction in production.
  • Renault - Client of Havas, mentioned for AI-driven cost reduction in production.
  • Echo - Agency company partnered with Havas Media.
  • Verve - Company invested in by Havas, creating generative AI personas.
  • Adobe - Partner in Havas's production tools.
  • GPT-5 - Mentioned as one of the large language models powering Ava.
  • Claude - Mentioned as one of the large language models powering Ava.
  • Gemini - Mentioned as one of the large language models powering Ava.
  • The Sandbox - Mentioned as a platform where Havas purchased land related to the metaverse.
  • P&G (Procter & Gamble) - Mentioned for its founding year in relation to Havas's history.

Websites & Online Resources

  • Apple Podcasts - Platform for subscribing to the podcast.
  • Spotify - Platform for subscribing to the podcast.
  • Verve (URL not specified) - Company creating generative AI personas.

Other Resources

  • Converged AI - Havas's operating system for integrating offerings.
  • Ava - Havas's new AI platform.
  • Generative AI - Discussed as a transformative technology.
  • Programmatic Buying - Mentioned as an early form of AI in advertising.
  • Midjourney - AI tool for image generation, mentioned as a life changer.
  • ChatGPT - AI tool for text generation, mentioned as transformative.
  • Metaverse - Discussed as a past trend where Havas invested.
  • AI-First Driven Company - Havas's strategic pivot.
  • Synthetic Research - Area where Verve operates, considered an exciting application of AI.
  • Generative Engine Optimization (GEO) - Analogous to SEO, discussed in relation to brands.
  • Search Engine Optimization (SEO) - Mentioned as a past optimization strategy.
  • AI Hallucinations - Discussed as a threat in AI usage.
  • Data Privacy - Discussed as a significant threat in AI implementation.
  • AI-driven Production - Discussed as a way to reduce costs.
  • Personalized Assets - Enabled by AI in content production.
  • Media - Discussed in relation to reaching audiences.
  • CX (Customer Experience) - Discussed in relation to integrating AI.
  • Smart Production - Discussed in relation to connecting with media and CX.
  • Carrier Pigeons - Mentioned as the historical origin of Havas.

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