What AI means for the future of agency-brand partnerships

AI is rewriting the rules of marketing — and redefining the agency-brand relationship. Brands increasingly expect agencies to harness AI to drive faster execution, more innovative optimization and stronger performance. While the technology delivers on those promises, it’s also raising new questions:

• Will AI replace agency roles?
• Should clients expect lower costs as workflows become automated?
• Does AI make it easier for brands to bring work in-house?
• How transparent should agencies be about their AI usage?

These questions aren’t just operational — they’re strategic. Because while AI creates undeniable efficiencies, it also forces brands and agencies to reconsider the value of the relationship itself.

Let’s be clear: AI isn’t replacing agencies. It’s redefining the value they deliver. And for that value to evolve, both sides need to rethink how they work together.

AI is improving efficiency — but strategy still needs humans

AI is already powering critical efficiencies in marketing. Agencies are using it to:

• Automate time-consuming tasks like audience segmentation, media targeting and performance reporting.
• Optimize campaign performance in real-time through automated bidding and creative testing.
• Predict audience behavior and identify emerging channels.
• Reallocate spend to maximize ROI across platforms.

These are significant gains — but they don’t eliminate the need for human input. They increase the need for strategic oversight and creative interpretation. AI can analyze massive datasets and deliver recommendations, but:

• Strategic execution still requires human expertise to apply context and business judgment.
• AI can optimize what already exists — but not originate disruptive ideas that rely on creativity and cultural nuance.
• Brand storytelling still relies on tone, voice and emotional resonance — which aren’t easily automated.

AI enables scale and speed. But it’s human insight that gives that work meaning.

Dig deeper: How the rise of AI makes people more important in marketing

Clients: Rethink what you expect from your agencies

If you’re on the brand side, now is the time to reassess what you need from your agency partners. This shift is a call to reframe the agency relationship — not reduce it.

Rather than seeing agencies purely as executors, think of them as strategic collaborators who can:

• Translate AI outputs into business-aligned decisions.
• Identify when and where automation makes sense — and when it doesn’t.
• Bring creative and media expertise that AI tools can’t replicate.

Don’t reduce the relationship because AI can “do more.” Reinvent it to focus on where humans and machines work best — together.

Ask your agency:

• Where they’re using AI and why.
• How is automation impacting pricing, staffing or workflow?
• What is their approach to combining AI with human oversight?

The most valuable agencies are guiding how AI is used.

Dig deeper: The secret to smarter, faster marketing decisions with AI

Transparency is the new trust currency

As AI becomes more central to agency operations, visibility into its use has become a priority for clients.

According to the IAB State of Data 2025 report, 51% of brands are concerned about a lack of transparency in how agencies and partners use AI. This concern signals a need for some transparency. Clients want to understand:

• Where automation is being applied — and whether it’s improving performance.
• What data is used to train AI tools, and how is bias managed.
• How agencies are balancing automation with human decision-making.

Providing this information isn’t about exposing trade secrets but reinforcing trust. Agencies that proactively address these questions are more likely to retain and grow client relationships.

Dig deeper: How to build consumer trust in the age of AI

Agencies: Be transparent, but protect your edge

While transparency is essential, it doesn’t mean fully disclosing every process or tool. Agencies should protect the proprietary tools, models and insights that differentiate them from others.

What should remain confidential:

• Proprietary AI models or automation tools developed in-house.
• Unique activation, optimization and analysis methodologies.
• Exclusive tech partnerships or licensed platforms.

The goal is to strike the right balance between clarity and differentiation. Clients don’t need to know how the sausage is made, but they need to trust the kitchen.

Yes, AI supports in-housing — but it doesn’t replace agencies

AI is making it easier for brands to manage more marketing functions internally. From personalization to performance dashboards to media automation, user-friendly platforms are reducing friction. But that doesn’t mean agencies are no longer needed.

According to the same report, 52% of agencies are concerned that brands will reduce their reliance on external partners by bringing AI capabilities in-house. While in-housing may streamline specific tasks, many brands quickly realize that technology doesn’t replace expertise. 

Running AI-powered marketing successfully still requires:

• Expertise in training, fine-tuning and troubleshooting AI tools.
• Ongoing optimization as platforms and behaviors evolve.
• Strategic alignment and guidance between AI output and business goals.

The most effective model? Hybrid collaboration. Internal teams handle execution. Agencies guide strategy, scale campaigns and bring perspective that’s hard to build in-house.

Dig deeper: How marketing workflows will change with AI

AI is shifting roles — but not eliminating talent

AI is changing how work gets done inside agencies. But it’s not replacing people — it’s reshaping roles.

What’s changing

• Manual tasks like reporting, trafficking and media planning are becoming automated.
• AI is becoming embedded across functions, enhancing how strategy, creative, media and analytics teams operate.
• Teams are shifting from hands-on execution to oversight, optimization and innovation.

What’s staying the same

• The need for human creativity, cultural fluency and critical thinking.
• Strategic thinking to connect tactics with business outcomes.
• Collaboration between internal and external teams to drive performance.

Only 37% of IAB respondents cited job displacement as a significant concern with AI adoption. Most see it as a tool to elevate teams — not eliminate them.

The new agency-brand model: Collaborative, AI-powered and human-led

The agency of the future is defined by interpretation, innovation and orchestration. In this new model:

• Clients should expect agencies to lead on AI integration, deliver insight and connect automation to outcomes.
• Agencies should use AI to scale intelligently — while doubling down on the human elements AI can’t replicate.

The strongest partnerships will blend automation with strategy, data with creativity and tools with trust.

Evolve the relationship — don’t end it

AI is changing the rules, not ending the game. It’s prompting brands and agencies to reevaluate how they work together.

For brands

• Don’t assume that AI means your agency is doing less — or should cost less.
• Consider how AI can enhance your agency’s contributions, freeing them up to focus on higher-value, strategic work.
• Focus on the value your agency brings in interpreting and activating AI.

For agencies

• Don’t wait to be asked. Show clients how you’re evolving.
• Be transparent about AI’s role and clear where human value still leads.
• Use AI to scale efficiency and invest in talent that delivers what machines can’t.

AI is here to stay. However, brand success will always rely on creativity, collaboration and strategic clarity. Agencies are being redefined. The opportunity has never been bigger for those ready to lead in this next chapter.

Dig deeper: How to unlock the true potential of AI with adaptive structure