Omnicom delivered another quarter of positive organic growth in Q2, as the company’s CEO outlined AI investments that will have a “profound effect” going forward.

The company’s organic revenue grew by 3.4% year-over-year in the three months ended June 30, with year-to-date organic growth now at 4.3%.

Operating expenses were up slightly, with decreases in salary expenses offset by higher third-party service costs and a $72.5 million charge related to severance.

Omnicom’s Advertising & Media segment, the largest contributor to the company’s revenue, had organic growth of 5.1%, aligned with the segments’s year-to-date growth. CFO Phil Angelastro said this was due to particular strength in the media business. Experiential revenue had the highest organic growth at 9.2%, though it still has the smallest share of Omnicom’s overall revenue.

Precision Marketing grew by 2.3% year-over-year, which is off from the growth experienced in Q1, though Angelastro said this was due to a mix of more cautious client spending and comparison to a strong year-ago quarter, adding that the segment stands to benefit significantly from Omnicom’s investments generative AI.

PR was flat at 0.1% growth, due to a comparison to a strong previous year quarter that included the U.S. midterm elections. Organic revenue in Execution & Support – which covers research, field marketing, point-of-sale, sales support and merchandising – declined by 3.8%, which Angelastro attributed to declines in field marketing and merchandising.

By region, the “Other North America” segment – which includes Canadian operations – had organic growth of 8.4% year-over-year, outpacing the company’s other regions. The U.S., which remains the company’s largest market, had organic growth of 2.4%.

While the company’s results were slightly behind analyst predictions, Omnicom CEO John Wren said that the company still had a successful quarter within its expectations. He also pointed out how several investments the company made during the quarter would set it up for future success, such as retail media and ecommerce with the launch of Omni Commerce, as well as generative AI.

“While we have engaged in AI for over decades, generative AI will have a profound effect on our industry and Omnicom,” Wren said during an investor call, pointing to generative AI capabilities added to its Omni data platform as well as partnerships with Google’s Imagen text-to-image model, Adobe’s Firefly image generator, Amazon Web Services and Microsoft’s ChatGPT.

While Wren pointed out the major opportunity for Omnicom to combine generative AI with first- and third-party client data in Omni, he also said the company’s approach was being mindful of risks like copyright, privacy concerns and how it would work with existing talent.

“While we have made substantial progress with Omni and generative AI, it’s critically important to note that AI can never replace the inspiration and genius that comes from our people and their creativity. These technological advances will simply make it easier and faster for them to develop and deploy creative ideas.”