Revolution or ‘smokescreen for survival’? Marketers on AI and the future of agencies

In the meantime, opinions swirl and predictions fill up LinkedIn. But with many marketers opting for a cautiously optimistic approach to this time of significant change, is that optimism becoming harder to square with findings from the likes of Forrester that major AI-related workforce reductions may be coming sooner than expected?

That’s what we asked senior marketers earlier this week, to a wide range of responses. Responses were so numerous, in fact, that here we bring another batch of honest opinions.

Christophe Jammet, managing director, Gather: “Every technological paradigm shift creates winners and losers based on how organizations respond. The losers make lizard-brain decisions. They use AI purely for headcount reduction to ‘double profits and halve people.’ This isn’t implementing transformation; it’s gutting capability and institutional knowledge while competitors build something better. Winners understand the full potential of AI, freeing talent for high-value work like thought leadership, strategy, creative problem-solving. This has created a trend of winners leaning into what I call ‘proof of life marketing’ – content that is undeniably human and can’t be faked by AI. The market being flooded with AI slop and faked content puts a premium on storytelling and genuine human expertise. Job loss is real, but it will be concentrated among the organizations that only view AI as a cost-cutting tool versus a capability accelerator. The real winners will lean into a human-centered AI approach.”

Scott Michaels, chief technology officer, Apply Digital: “There are job losses at the hands of AI, that is undeniable. Teams aren’t shrinking to just cut costs; they are shrinking because employees are empowered. They are empowered to deliver outputs whose skillset was previously outsourced. They can now create better outputs quicker and at agency quality. A few years ago, if you had told me I needed to achieve 40% growth from last year, with 20% less budget, I would’ve laughed. In today’s world, that is possible. Teams can be leaner (with senior staff), both agency- and client-side. Having an AI skillset isn’t just a nice-to-have any more; it’s a necessity. Clients have the opportunity now to be pickier with their agency partners and expect real time-to-value with AI work. Having a deep understanding of the ‘why’ behind your work will be the next separator as everything else becomes commoditized.”

Kate Tancred, CEO, Untold Fable: “We’re in a sweet spot right now, enjoying the creative enhancements and efficiencies AI brings without yet seeing major workforce erosion. But this is temporary. As adoption accelerates, efficiencies will be demanded and prices will fall. We’ll inevitably see fewer roles, particularly at the junior level. There is genuine optimism across the industry as confidence returns, but the true impact of AI is still ahead of us. I see this shift as an exciting opportunity rather than a threat. It will require a significant reshaping of our industry. Some jobs will go, but new ones will emerge, along with the need for large-scale retraining. The in-housing trend will continue, with clients developing their own AI capabilities and relying less on agencies. Margins will compress as the market matures, but agencies with deep expertise will thrive by offering high-value, complementary services alongside AI-driven solutions.”

Dom Goldman, founder, You’re the Goods: “Some roles will inevitably disappear. They always do when technology rewrites the way we create. But this shouldn’t be a moment of loss. It’s one of evolution. If the goal is to double profits and halve people, that’s not progress. It’s profit without purpose. The opportunity now is to expand what creativity can achieve. These tools give us the leverage to create faster and think bigger than the old model ever could. We’re seeing small, senior teams deliver at a scale that once required departments. AI gives us speed. The direction still comes from human taste, instinct and ambition. Optimism doesn’t mean ignoring the challenge. It’s built on facing what’s hard and using it to evolve. The next era won’t be measured by headcount or billable hours. It’ll be measured by the value and meaning of what we make. It’s not survival. It’s reinvention.”

Kate Ross, co-founder, Eight&Four: “I’m bullish. Jobs are just bundles of tasks. When technology automates some, the role evolves. Roles only vanish when the entire bundle becomes redundant, like hand-ploughing or switchboard operators. Modern (marketing) jobs are highly varied; they’ll rebundle, not disappear. World Economic Forum data supports this: 7% job growth globally by 2030. Marketing already adapts constantly, around new technology, mediums and cultural shifts. History shows adaptable jobs endure. Most marketing automation will serve the small-business long tail that never used agencies anyway. In a zero-cost production environment, larger brands will need agencies more than ever to create cut-through. Automation isn’t linear. The washing machine promised to free us from laundry. Instead, we wash our clothes far more and spend longer folding and putting away. The overall work stays; agencies will just be tasked to make ‘more’.”

Ben Foster, chief operating officer, The Kite Factory: “While the market is full of optimistic predictions and talk of ‘green shoots,’ much of this is bravado: figureheads posturing to create the illusion their organizations are outperforming the rest. Brand image is everything. Everyone wants to be seen as bucking the trend. At the same time, a negative outlook quickly becomes a self-fulfilling prophecy, so the collective narrative leans toward cautious optimism rather than genuine concern. That’s why we’ve seen so many ‘AI-driven efficiency’ stories rolled out to mask what are, in truth, cost-saving staff cuts. Don’t get me wrong, AI automation is absolutely delivering time savings and reducing resource needs, just nowhere near the scale being spun in the media. Largely, it’s less a revolution and more a convenient smokescreen for survival.”

Yomi Tejumola, founder, AlgoMarketing: “In any major economic shift, there is going to be pain in the jobs market and companies’ bottom lines will suffer. Employer needs and worker skills will have to go through a period of alignment as the latter catches up with the former. But, inarguably, there’s huge demand for workers with AI skills. That’s only going to grow. Having gone through a period where AI has been seen in terms of efficiencies and cost-cutting, the discussion is moving towards productivity. While that may provide little solace for those who have lost their jobs (or are worried about losing them), it is also a huge opportunity. If you can take up the mantle, experiment with AI, upskill yourself and demonstrate an ability to harness the technology to add value, you may be exactly what many marketing departments at large enterprises are looking for right now.”

J Brooks, founder, Glassview: “AI will undoubtedly replace certain agency functions, but only those agencies that can demonstrate a real and defensible differentiator will remain essential to clients. The notion that profits will double while staff numbers are halved ignores a simple truth: clients will soon have access to the same AI technology and media buying power as agencies. When access to these tools flattens, what’s left to justify the middle layer? Without proprietary intelligence, data, or creative frameworks, most agencies risk obsolescence in a market where AI erodes the traditional barriers to entry. The optimism is not surprising – it’s comforting to believe that change equals opportunity – but history suggests otherwise. Pride usually comes before the fall, and those assuming they can automate their way to record margins may soon find their clients wondering why they need them at all.”

Jason Harris, co-founder, Mekanism: “Agencies are in a moment of recalibration. Automation and client pressure on efficiency will trim traditional roles in 2026 and beyond. The challenges are real: proving ROI on creative work, navigating speed and cost pressures, and some uncertainty about which skills will still matter most. The industry’s future hinges on agencies proving that human creativity delivers actual business results. I’m optimistic that the agencies that can nail that while embracing the right tools will come out ahead.”

April Quinn, president, Americas, R/GA: “AI is undeniably reshaping the agency landscape. In the short term, that means disruption and some job losses as we move through this first phase of efficiency. But like every major technological shift, disruption comes before opportunity. New roles will emerge because creativity, storytelling, and design will remain essential. We need craft experts who can get the best out of the tools and define what ‘good’ looks like in an AI-powered world. The real challenge isn’t just adopting AI; it’s learning how to re-skill, restructure, and use AI to create better, not just cheaper, work. At R/GA, we’re embracing an AI-first mindset and rethinking how we collaborate with clients, confident that creativity and innovation will remain the key differentiators that set brands and agencies apart.”

Jody Osman, chief growth officer, Propeller Group: “The year started fast, but momentum stalled sharply in Q2 as brands and agencies faced short-term pressures (from trade tariffs to (in the UK) rising employer NI), leading many to pause or cut marketing spend in an effort to protect profitability. Recent weeks have brought more optimism. We’ve seen a notable uptick in new business, especially across adtech and in the US market. Uncertainty persists as AI reshapes agency models. Yet disruption brings opportunity: new ways for agencies and tech partners to add value in a rapidly changing environment. With margins under pressure and the landscape evolving fast, ‘business as usual’ doesn’t cut it any more. The strongest performers will be those who stay agile and continue to invest in people, technology and marketing, despite the uncertainty.”

Arthur Perez, managing director, Stereo Creative: “I’m genuinely optimistic about AI. It’s already shifting how we work and think. That’s exciting, not threatening. But we’d be naive to ignore its disruption. When I see large businesses dismiss staff to only rehire again, it’s because AI ‘lacks’ something. That should be a reminder that technology alone can’t replace human judgment, creativity, or connection. AI won’t magically improve margins; at best, it helps us hold the line. It’s keeping pace with an industry facing more formats and faster production cycles. And this trend has only increased now that brands have bigger in-house creative teams. The only threat I see is companies neglecting their investment in junior talent. This is shortsighted. Junior talent keeps the industry alive: they learn, challenge, and build future culture. Without them, the industry withers. 25% of our team are juniors. That’s not nostalgia, it’s belief in the future.”

Jay Prasad, CEO, Relo Metrics: “The narrative that AI will replace agencies misses the real opportunity: it’s transforming what agencies are for. Their role is shifting from executing campaigns to enabling entire systems of creativity, data, and performance. Generative and agentic AI are accelerating the routine parts of marketing, but they also elevate what only humans can do – distilling ideas, shaping culture and connecting with emotion. The agencies that thrive will be those that plug into scaled data partnerships and use new AI-driven software as a launch point for creativity, not a replacement for it. In emerging areas like computer vision and contextual understanding of live moments in sport and entertainment, AI gives agencies the precision to measure impact and the freedom to imagine more. The future isn’t fewer people as a primary value; it’s more powerful teams, operating with sharper tools and wider reach.”

Joshua Lowcock, president, Rise: “Larger advertising agencies will be disproportionately impacted due to their cost base and other headwinds like scrutiny of principal-based media that’s eroding their margins. Holdco mergers are already driving lay-offs, and AI will simply exacerbate their problems. On the mid-sized agency front, we’ve always been forced to be lean and focused more on innovation to differentiate ourselves. AI lets us do more with less and better service clients. I don’t necessarily see job losses, but I do see us being able to do more with what we have (plus add a few new types of specialist talent into the mix). Overall, when it comes to AI’s impact on the industry, it’s likely that collectively we’ll see a net decline in industry headcount. Small to mid-sized agencies will stay flat but win more because AI levels the field, and large agencies will continue to recalibrate and contract in the process.”