So check this out, after the craziness of the pandemic, agencies are climbing back up in earnings, but there’s a catch. AI investments are skyrocketing, reaching a whopping $92 billion in 2022 and $50 to $60 billion in 2023. And here’s the thing, the key to even more growth rests on agencies shifting their economic model and fully embracing AI.
In 2024, agencies will have to revolutionize the way they do business, moving from a services-based model to a solutions-based one that combines creativity and technology products. This shift will impact all types of agencies, from creative to media to digital and in-house. It’s all about pairing up people with technology.
The future is going to see some wild stuff, like bespoke brand algorithms powering agency offerings. These brand-specific AI applications will be using all sorts of data and insights to create personalized marketing strategies. But as cool as it sounds, it’s going to make some people nervous, leading to more agency reviews out of fear of AI mismanagement.
And speaking of changes, digital agencies might start disappearing as AI takes over the marketing landscape. With AI shaping more personalized experiences, specialized “digital” agencies might be a thing of the past.
But it’s not all doom and gloom. AI is not just about replacing human jobs, it’s about enhancing them. Sure, AI can automate a lot, but it’s also going to augment the skills of employees. So instead of worrying about job displacement, agencies should be finding ways to balance automation with human creativity.
So if you’re a B2C marketer, now’s the time to leap into the AI era. It’s all about experimenting, implementing, and commercializing the use of AI in your marketing strategies. It’s going to be a wild ride, but it’s worth it. For more insights, you can visit the Predictions 2024 hub and download the guide. This blog was written by VP, Principal Analyst Jay Pattisall and originally appeared here. And hey, you can follow him on Twitter or LinkedIn and check out his website.
So that’s the lowdown on the future of AI in agencies. It’s going to be a game-changer, that’s for sure.