How agency CEOs really use AI at work

The AI revolution in agency work: Agency CEOs are embracing artificial intelligence to streamline operations and enhance creativity, while grappling with its implications for compensation models and client relationships.

• AI is being utilized across various agency functions, including RFP completion, internal training, research, and creative ideation.
• Agencies are experimenting with AI to improve efficiency in tasks that previously required significant human effort, such as data processing and design comping.

AI applications in agency operations: Agency leaders are finding diverse ways to integrate AI into their workflows, with some focusing on specific areas while others encourage widespread adoption.

• TBWA\Chiat\Day US is using AI to accelerate design comping and data processing for research.
• The Community is exploring AI for summarizing earnings reports but faces challenges with culturally-driven content due to AI’s inherent biases.
• Publicis Digital Experience is leveraging AI for internal team connectivity and training progress tracking.
• Dentsu Media is applying AI to clean and process large-scale data sets efficiently.

Fostering AI innovation within agencies: Some agencies are taking proactive steps to encourage AI adoption and innovation among their employees.

• Deutsch LA mandates daily AI use for all employees and organizes “Create AI Thon” events to generate innovative AI applications across departments.
• Grey is utilizing AI filtering to remove bias from its testing processes, leveraging WPP’s Open technology platform.

AI’s impact on agency compensation models: The integration of AI is prompting discussions about potential shifts in agency compensation structures.

• There’s a growing interest in moving towards outcome-based compensation models rather than traditional time-based approaches.
• Some agencies are using AI to maintain productivity levels within existing time-based models, while others are incorporating generative AI into their master service agreements.

Client reactions to AI in advertising: Brands are showing varied responses to the use of AI in creative marketing efforts.

• Some clients, particularly in the food industry, are prohibiting AI use in their marketing materials, preferring traditional methods like food photography.
• Legal and copyright concerns, as well as fears of perceived false advertising, are contributing to client hesitation in embracing AI for creative campaigns.

Balancing AI potential with human creativity: Agency leaders are navigating the dual nature of AI as both an opportunity and a potential threat to traditional agency value propositions.

• While excited about AI’s potential to harness internet-scale creativity, there are concerns about the potential devaluation of human ingenuity and creativity.
• Agencies are striving to find a balance between leveraging AI for efficiency and preserving the human touch that drives creative excellence.

Looking ahead: AI’s evolving role in advertising: As AI technology continues to advance, its integration into creative marketing efforts is expected to increase.

• Agency CEOs anticipate that discussions around AI use in creative campaigns will become more prevalent in the coming year.
• The industry is likely to see ongoing negotiations between the benefits of AI-driven efficiency and the preservation of human-centric creativity in advertising.