Ad agency holding company Stagwell is acquiring Left Field Labs in a bid to deepen its capabilities around artificial intelligence. Terms of the deal were not disclosed.

Left Field specializes in providing digital solutions via AI, as well as other technological approaches such as VR and experiential design. By incorporating the agency into its portfolio of marketing agencies, Stagwell hopes to use these methods to help clients tackle challenges currently facing their businesses. 

Top of mind will be implementing AI systems that do not skimp on responsible design, according to a press statement. The rise of generative AI, with its knack for driving enterprise efficiencies, has compelled marketers to find ways of incorporating the technology. But much remains uncertain in the AI space—from questions over copyright to data privacy to excessive job replacement—leaving key decisions pertaining to responsibility up to those same marketers.

Meanwhile, Stagwell is contending with its own uncertainties. The company previously reported falling revenue for two second consecutive quarters and slashed its forecast for the rest of the year. Speaking with Ad Age in August, Stagwell CEO Mark Penn blamed economic headwinds, which he said have substantially curtailed tech-focused efforts. Yet the company remains committed to accelerating its business through digital transformation, with an eye on generative AI in particular.

Left Field was founded in 2008, is based out of Los Angeles and has more than 100 employees. It has helped clients including Google, Meta, Uber and Hasbro.

As part of the deal, Left Field is rolling out a suite of offerings that blend AI with other areas of focus, including immersive experiences. Stagwell declined to provide more details, although language from a press statement describes the tools as helping clients develop AI skills and improve workflow efficiency. Left Field already has in place a practice of using generative AI-based assistants to aid internal processes.

The acquisition is Stagwell’s third of the year, following its purchase of design studio Tinsel Experiential Design in July and In the Company of Huskies, a digital agency, in April.

“We’re pleased to welcome Left Field as an integral part of our long-term growth strategy, helping us lead AI-based digital transformation in marketing,” Penn said in a press statement.