How AI will redefine brand-agency relationships

The rise of AI in marketing has advertisers buzzing about cost savings and speed to market. But if that’s all they see, they’re missing the bigger picture. Productivity and speed are table stakes—any half-decent AI implementation will deliver those. The real story is how AI will fundamentally reshape the strategic value advertisers get from their agency relationships—not by automating tasks but by transforming how decisions are made, who makes them and how value is measured. Here are three dynamics that will redefine agency value to advertisers: De-biasing thought All human beings are biased. We lean on our experiences, default to recent information and make decisions based on problem-solving that worked before. This reduces the quality and resolution of strategic thinking, particularly in marketing, where human behavior is anything but predictable. See all of Ad Age’s 2025 Agency A-List winners here AI changes this by remembering and applying concepts that are often overlooked or forgotten. Imagine an AI that surfaces strategic frameworks, case studies or consumer insights relevant to a problem—but outside the cognitive reach of the human team. This isn’t just about being faster—it’s about being smarter, more comprehensive and ultimately more effective. Rise of marketing ‘soloware’ The days of agencies delivering perfectly polished “ta-da!” presentations are numbered. AI is poised to usher in a new era of marketing “soloware,” where agencies create custom AI agents or GPTs not just for each advertiser but customizable by each individual within the advertiser’s team. These agents will learn from user interactions, preferences and even failures, enabling marketers to explore scenarios, test hypotheses and iterate in real time. The agency’s role will shift from crafting final outputs to building flexible blueprints and strategic building blocks. The collaboration between advertiser and agency will become more fluid, and the best work will be done along the way, not just at the end. Shortage of top-tier talent Today’s agency landscape is flooded with a sea of sameness, driven by the commoditization of services and an oversupply of agencies willing to undercut each other on price. But AI is about to flip the script. The difference in the quality of tools built, strategies formulated and collaborative working styles will become stark. Advertisers will see a growing divide between the best and the rest. This will create a shortage of top-tier talent, driving up fees for agencies that truly master AI’s potential. Advertisers will need to rethink how they evaluate and engage agencies, as the value delivered will no longer be purely output-based but also about orchestrating advanced AI systems. Here is what advertisers should start doing differently now: Set strategic guardrails Many marketing teams today act as traffic cops, directing the flow of work and reviewing every deliverable. In the AI era, this will become a bottleneck. Advertisers will need to build marketing systems that enable the best work to surface even if they don’t personally see or approve every step. This means shifting from command-and-control to “systems-think,” where strategic guardrails are set, but AI and agency teams are trusted to operate within them. Align marketing and procurement The relationship between marketing and procurement will need a dramatic overhaul. Most procurement teams are incentivized to reduce cost inputs, but the new agency value equation will be about outcomes and metrics. The best thinkers orchestrating AI won’t be cheap, and advertisers must be willing to invest in strategic agency partnerships instead of squeezing costs, at least for high-value strategic work. This will require procurement to understand and value the strategic, long-term benefits of advanced AI tools and agency collaboration. Value progress over perfection Agencies will have less control and fewer opportunities to polish every detail before showing it to the client. AI systems will make work more transparent, including the flaws and mistakes along the way. Advertisers must get comfortable with a more iterative, transparent working style. It will be more like an open dress rehearsal than a perfectly curated performance. This requires a cultural shift toward valuing progress over perfection. Ultimately, advertisers that see AI as a productivity tool alone will miss out on its strategic potential. The biggest gains will go to those who recognize AI as a catalyst for better thinking, more collaborative partnerships, and new ways to measure success. Agencies that embrace transparency, build soloware and cultivate top-tier strategic talent will stand out in a field still struggling with commoditization. It’s time to move beyond seeing AI as a cost-cutting machine and instead view it as a strategic partner that can elevate the entire marketing ecosystem. If you’re not preparing for this now, you’re already behind. Ad Age Small Agency Awards Showcase your agency’s creativity, business success and commitment to a thriving workplace. Enter today

How AI will redefine brand-agency relationships

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