AI’s impact on agency budgets – Reflections from the latest BIMA AI Roundtable

By Raymond Manookian
19 Nov 2024

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The latest BIMA AI Roundtable, co-chaired by Kerry Howell and Liberty Covill, delved into the budgetary and commercial realities facing UK agencies as they adopt AI-driven strategies. With AI continuing to reshape advertising and design, agencies are finding ways to turn the challenges of AI integration into genuine opportunities.

AI as an enabler and cost-saver
When used effectively, AI doesn’t just cut production times; it allows creatives to focus on the high-value elements of their work. However, its potential lies not in shortcuts but in enhancing creativity, elevating ideas, and driving quality.

One of the most notable outputs from faith in the last 9 months was creating the Bubl image generator tool for O2, which allows the Marketing team to create assets of their brand mascot, Bubl, in any setting, in any pose. This allowed O2 to react to current events and trends with Bubl in a way they hadn’t been able to before. In this instance, it wasn’t time- or budget-saving, but being able to do something they wouldn’t have been able to previously. An enhancement to the creative process and the brand interactions for the customer rather than AI taking over creativity.

faith: Turning challenges into opportunity
The launch of faith, an AI-focused agency as part of the VCCP Group, represents a proactive approach to AI, positioning it as a tool to collaborate more deeply with clients and bring brand ambitions to life. This model shows that adopting AI can be a strength, supporting creative integrity while meeting today’s evolving demands.

However, we are still in the infancy of AI in the marketing world. There is nervousness around brand, legal, and rightly so. Never before have we seen a new tech trend take off so quickly. The industry is moving at lightning speed, and it takes a lot of dedication to stay on top of the evolution. We have faith that AI, when used responsibly, accelerates human creativity and imagination – it’s the humans in the process that make the success of brands. We might use AI to speed up some parts of the process, but it will never replace idea generation or craft. We can unlock possibilities we couldn’t before, but to creatively work for some of the biggest brands in the world, human beings are always the most critical part.

Building relationships with AI technology
A central theme was relationship-building, not just with clients but also with technology. While AI’s accessibility is a strength, ensuring its application adds distinctive value is a new responsibility for the creative industry. The need to balance innovation with relevance is evident.

Experimenting with the tools out there is vital. As of right now, there are groups of hobbyists who are building and wrapping tools with little funding or marketing. However, these tools are still on the cutting edge and the ones that will propel young creatives further. The open-source community that shares code and tips in forums and on Discord servers is an excellent source of information in this rapidly evolving space.

But most importantly, the tools should be treated as just that…tools. Creativity, like any tool, the quality of the output depends on the skill of those who use it. Whilst the tools may get you 70% of the way there, producing assets up to the creative standards of leading agencies requires human input borne out of experience and expertise.

Strategically, starting with the business problem remains crucial and then using AI as an element of your creative toolkit to execute an innovative idea (if appropriate). It would be naive to get over-excited about these shiny new toys that you are dying to use – starting with your solution and looking for problems is unlikely to bring about the right kind of value for clients.

The cost of entry and new pricing models
AI adoption comes with various associated costs, challenging traditional pricing structures and agency models. However, agencies are finding ways to adapt, leaning into value-based models and tailored solutions to reflect AI’s unique demands.

At faith, we have adapted our pricing models to heavily lean on value-based pricing and subscription models. We revisit this often, though, as the market changes and client requests become more specific. Like all things with AI, iterating with the landscape is critical.

Data and authenticity
With the increase in synthetic data and AI-generated content, agencies face an authenticity challenge. As data volume grows, it’s essential to ensure creativity remains human-centred and distinct, with new roles and specialisms arising to steward data responsibly.

Audiences, primarily digitally native Gen Z, are crying out for increased authenticity from brands. AI risks authenticity, mainly through the distinctiveness key to making your brand authentic. As most AI models are trained on similar datasets or base architectures, there’s a risk of brands homogenising their output, blurring their unique voice in the process.

Using AI alone won’t provide a lasting competitive advantage. In fact, similar training data might neutralise it, making it even harder for brands to stand out. How brands use AI to amplify their strengths will truly matter.

This could mean setting clear data boundaries, e.g., avoiding overreliance on popular base models. Another way to enhance a competitive edge is by maintaining human involvement throughout the creative process, from concept generation to overseeing AI in execution, and finally, giving the last critical review before any output goes out the door.

Have a Little faith
As AI continues transforming the advertising landscape, agencies find new ways to navigate budgetary challenges while upholding their core creative values. The shift isn’t without obstacles, but the opportunities to evolve, innovate, and build meaningful connections are clear.

Agencies like faith show that, with trust, collaboration, and a human-centred approach, AI can be an enabler rather than a disruptor. For the creative industry, it’s not just about embracing technology; it’s about having a little faith in its potential to enrich, differentiate, and inspire. In the end, those who approach AI with purpose and creativity will be the ones to lead this new era.

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