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$2bn Publicis-Microsoft deal goes beyond media to cover ‘entire workflow’

Can anybody keep up with Publicis Groupe? CEO Arthur Sadoun seems to have a hotline to the big global accounts, and his stated mission to “win in the platform world” is going pretty well, mostly thanks to Publicis’ AI capabilities.

Publicis, as predicted, has won Microsoft’s $2bn global media account without a pitch – but that’s only part of a bigger story: Sadoun will, he says, combine Publicis’ agency, data and consulting expertise with Microsoft’s AI capabilities.

The deal is part of an expanded strategic partnership between the two businesses, integrating their “AI agents and identity-based data to accelerate marketing outcomes.” The mission is to “leverage each other’s expertise to embed agentic AI across the entire flow of work to marketers can focus on what they do best: strategy, creativity and the pursuit of original ideas.”

In return for the business, Publicis will use Microsoft Azure as its preferred cloud provider and will make Microsoft’s 365 Copilot AI tool available to all its workforce. The deal is the fruit of a long-term relationship between Sadoun and Microsoft CEO Satya Nadella, which started in 2017 when Publicis launched its internal AI platform Marcel (much derided at the time) with support from Microsoft.

Sadoun said: “Together, we are combining Microsoft’s unmatched technology and AI capabilities with Publicis Sapient’s transformation expertise on top of Epsilon’s industry-leading identity data to deliver agentic solutions that are truly game-changing for clients. Both our companies believe that the future of AI requires agents in service of people and humanity, and with this partnership we are creating a unique opportunity for our clients to lead against this ambition.”

Judson Althoff, the chief executive of Microsoft’s commercial business, which includes the marketing function, added: “This partnership reflects our belief that AI must do more to serve humanity by empowering creativity and innovation. By bringing Microsoft’s cloud and AI capabilities together with Publicis Groupe Solutions built on Azure, we are giving creatives and makers the freedom to spend less time on repetitive execution and more time shaping ideas, building brands and driving meaningful growth for our customers.”

Media incumbent Dentsu hasn’t been edged out entirely. After ten years on the global business it has been left with Xbox, and will continue content production through Tag Worldwide.

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