Global marketing holding company Stagwell is doubling down on AI and agile operations, even as giants like WPP, Omnicom, and IPG tighten their belts.

At a time when traditional advertising conglomerates are facing pressure from slower growth and cost-cutting demands, Stagwell Group is charting a different course—one that leans heavily into AI and next-gen tech to boost revenue and streamline operations.

Mark Penn, Chairman and CEO of Stagwell, recently told that the company’s hybrid structure, AI-first approach, and decentralized model have not only helped reduce overheads but also enabled faster client servicing, positioning it as a more agile player in the crowded agency landscape.

“We’re not looking at layoffs or shrinking; we’re growing,” Penn asserted. “Stagwell is on a mission to modernize marketing by integrating technology, data, and creativity. AI plays a central role in this transformation.”

A Different Growth Story

While WPP, Omnicom, and IPG are reportedly trimming operations and slowing hiring in response to margin pressures and macroeconomic headwinds, Stagwell has taken a contrarian approach. The company is investing in new AI tools, building cloud-based marketing platforms, and hiring engineering talent—even internationally.

One such tool is Prophet, an AI-driven brand strategy platform that helps companies align market trends with creative strategy. Stagwell’s digital backbone, backed by its internal tech incubator Stagwell Marketing Cloud, is helping consolidate media planning, influencer management, and analytics onto a single AI-enhanced stack.

According to Penn, this shift toward tech-enabled services is not only making the company more efficient but also more appealing to modern marketers. “We are attracting clients who are disillusioned with slow legacy structures. Our AI systems allow for rapid iteration, smarter targeting, and cost efficiency,” he said.

Leaner, Faster, More Tech-Driven

Unlike traditional holding companies that are organized into siloed verticals with high-cost legacy systems, Stagwell maintains a lighter operational model. Its distributed network of agencies functions with greater autonomy, supported by central AI and data infrastructure.

This setup enables a faster go-to-market strategy for campaigns. For instance, Stagwell’s Constituent, an AI-powered voter data analytics tool, was deployed across multiple political campaigns in the U.S. to track sentiment in real-time and adjust messaging dynamically. Similarly, its collaboration with tech startups allows faster integration of experimental tools such as generative AI and predictive modeling.

Penn emphasized that this is not just about survival—it’s about leading the next wave of marketing transformation. “We believe the future belongs to firms that understand both creativity and code,” he noted.

Industry Response and Market Implications

Industry analysts are taking note of this shift. While WPP has issued cautious guidance and Omnicom focuses on cost optimization, Stagwell’s confidence in AI-fueled growth is seen as a bold—but potentially high-reward—strategy.

“Stagwell’s bet on AI and its lean operational structure give it an edge, especially in markets where clients are demanding more for less,” said a senior analyst at Forrester. “Whether the larger holding firms will adapt or double down on traditional models remains to be seen.”

Moreover, the company’s approach may signal a broader trend toward performance-based, tech-integrated marketing services. As brands increasingly prioritize real-time insights and measurable outcomes, agencies that can deliver both speed and strategy through AI will likely hold the advantage.

Looking Ahead

Penn hinted that further innovations are on the horizon. The company is actively exploring AI copilots for creative brainstorming, media budget forecasting tools, and multi-modal content generation engines.

“We are not just riding the AI wave—we’re helping build the surfboard,” he concluded.

As the marketing industry continues to evolve, Stagwell's AI-first playbook may become the template for a new kind of agency—one that values code as much as creative, and agility as much as scale.