As part of its strategic efforts to enhance data and artificial intelligence services for its clientele, Mod Op, an independent digital agency, is set to introduce an internal AI initiative known as the AI Council this week, as reported by Digiday.
This move aligns with Mod Op’s proactive approach to acquisitions in the past year, aimed at bolstering its creative and technological capacities while consolidating creative and media assets within a unified framework. Eric Bertrand, the CEO of Mod Op, disclosed plans for additional acquisitions currently underway or in the pipeline.
Over the last twelve months, Mod Op has finalized five acquisitions, with ongoing negotiations for the purchase of another creative agency and discussions regarding a full-service agency. While specific deal terms and financial details remain undisclosed, the overarching objective behind establishing the AI Council is to institute an AI and machine learning practice across all strategic business segments, encompassing media and digital realms, as the agency expands its footprint and positions itself as a premier AI consultant for its clients.
Bertrand articulated the agency’s acquisition strategy, aiming for approximately one new company every quarter, potentially escalating based on operational pace. The primary focus remains on leveraging acquired technologies to benefit the expanding client base.
The AI Council, spearheaded by Mod Op’s CTO Tessa Burg, will concentrate on the internal and external testing of AI solutions, alongside research endeavors and oversight of security, compliance, and governance protocols. Initially operating on a voluntary basis, the Council has now grown to include around 30 professionals from diverse business units, incorporating expertise from digital, media, creative, PR, and strategic consulting domains. Bertrand emphasized the Council’s scalability, with plans to recruit full-time staff members dedicated to this initiative.
Burg outlined that the AI Council will utilize a bespoke learning management system for clients, enabling them to access the platform for AI and machine learning training and education. Furthermore, the agency will subject additional tools and services to a rigorous governance framework and evaluation process as part of its product testing procedures.
Mod Op highlighted its expanding client portfolio, ranging from Fortune 500 corporations to mid-market brands, including prominent names like Nike, Google, Nvidia, and Belvedere Vodka.
Noteworthy acquisitions by the agency include dPrism, a tech consultancy specializing in data and machine learning, and RTOP (Red Tettemer O’Connell & Partners), a Philadelphia-based creative agency acquired in February. These acquisitions supplement Mod Op’s social media, experiential marketing, and content production services, aligning with the agency’s commitment to enhancing its full-service offerings through technological integration for improved operational efficiency and client service delivery.
Bertrand underscored the importance of streamlined processes that facilitate rapid integration of acquired entities, catering to the evolving client demands for comprehensive service relationships. This trend mirrors the industry-wide movement towards consolidation and technological advancements to drive competitiveness and growth.
While creative agencies are increasingly exploring generative AI tools and content, there remains a cautious approach among brands due to legal considerations such as copyright laws and privacy issues. Nick Watts, chief AI officer at creative production agency Hook, emphasized the legal complexities surrounding AI applications in visual content generation, noting ongoing collaborations with brand partners to explore AI tools within creative workflows while exercising prudence in campaign production endeavors.
