Is AI Coming For You

Is AI Coming For You

As an ad agency owner, you face tremendous competition. Google the term “Ad Agency” and you get 4,570,000 results. Google will likely show you only 40 pages of results. I feel bad for the agencies and related companies that make up the rest of the results, which will never be seen, lost in the cloud. You get about 18,588, or 372 results pages, if you search on Clutch. Agency Spotter claims to have 20,709 top marketing agencies. That’s around 647 pages of results. According to ChatGPT, total registered ad agency businesses in the U.S. (all sizes/types): ~100,000. Active, notable agencies: 13,000–15,000. Digital‑only shops: roughly 45,000 in North America.

And now AI is becoming a major competitor to agencies. According to recent surveys, well over 70% of your prospects are using AI in marketing, with many far along in implementation rather than just experimenting. 82% of U.S. businesses using AI report applying it specifically to marketing tasks, covering ideation, activation, and validation of campaigns. 30–40% have automated certain roles. But there’s no evidence of sweeping cuts to marketing headcount. Most firms use AI to support, not supplant, their teams.

The Financial Times reported that Klarna cut its dependence on marketing agencies by 25% after adopting AI-driven ad creation tools from platforms like Meta, Google, and Amazon. According to WPP, their most recent guidance and share-price drop (down 18%) directly tie back to clients reallocating ad-budget because of AI’s threat, as reported in Barron’s. Digiday reported; Clients now expect faster outputs and lower costs thanks to AI. As Sir Martin Sorrell of S4 Capital said, “If AI cuts 20% of the time…does that mean fees drop 20% too?” There is no doubt this trend is squeezing traditional FTE billing models and compressing agency margins, and the impact will be increasing rapidly.

The point is, there is unprecedented competition. I can’t find any public data reporting the percentage of agencies that lost clients due to AI. Still, anecdotal evidence is mounting: major clients are taking budget elsewhere, and agency giants are reacting defensively. We should expect more high-profile clients to scale back or repurpose agency contracts as AI capabilities mature. The question is when, not if. More importantly, what can agencies do about it, and how can they win new clients against this tsunomi?

Standing Apart

In a competitive landscape like this, where clients can work with agencies almost anywhere, and AI can work faster without taking a coffee break, differentiating is more critical than ever; otherwise, you are just one of 5,000, 15,000, or 50,000 others. You can see why I’m a big advocate of carefully defining your business proposition, unique value, differentiation, or whatever you want to call it, including now, against AI, in as many ways as possible to create separation from the ever-widening sea of sameness. Doing so helps clients who are seeking your expertise find you. Some agency owners tell me they don’t have any uniqueness. They deliver the same thing as every other agency. AI is going to kill them. I reply, every individual is unique. You and your team are no different. Let’s find the differences and exploit them.

Agencies can take several approaches to define their uniqueness, expertise, and edge in today’s environment, where AI, procurement, in-housing, and thousands of other agencies all threaten to make you invisible and extinct. Below are the highest-impact strategies I see working today. Start with one. Do it exceptionally well. Then layer on. Skip the generic playbook. Be specific and provocative and you’ll be remembered.

1. Compete Above AI, Not Against It

AI is fast, scalable, and a dangerously credible tool. But it can’t lead, interpret context, or understand your client’s actual business. It doesn’t have human reasoning. You do and should be the master of your tools.

• Reframe your role: Position your agency as the critical human intelligence layer that decides what’s worth doing, not just how to do it.
• Package your judgment: Sell thinking, use AI for tasks. Branded frameworks, decision-making tools, and IP drive more value than deliverables.
• Lead the strategy conversation: The more clients rely on AI for execution, the more they need a guide they trust to prioritize, challenge, and steer.

2. Define and Deepen Your Specialization

• Niche down hard: AI is the ultimate generalist. Win by going narrow and deep. Choose 1–3 verticals and own them with insight, nuance, and language AI can’t fake.
• Tie services to buyer needs: Don’t just offer “strategy” or “creative.” Package offerings that directly solve niche pain points, using real buyer language.
• Show up with proof: Use blog posts, case studies, podcasts, webinars, or war stories to demonstrate lived expertise in your verticals. Think smart, not slick.

3. Demonstrate Real AI Usage (Internally)

Marketers aren’t stupid. They want to know: Are you using AI to make the work faster, smarter, and more efficient, or are you just talking about it?

• Pull back the curtain: Share real-world use cases (e.g., faster media planning, segmented creative at scale, AI-assisted audits).
• Show the before-and-after: Post simple videos or side-by-side screenshots. Proof beats puffery every time.
• Teach what you’re learning: Be the agency that demystifies AI for clients. Create short educational content, LinkedIn carousels, or host briefings.

4. Publish a Clear AI Point of View

Most agencies regurgitate headlines. Almost none have a distinct, client-relevant POV.

• Write a position paper: Publish a 1-page AI manifesto, what you believe, how you use it, and where you draw the line.
• Be contrarian when justified: Call it out if something smells like hype. Marketers respect backbone, not bandwagoning.
• Speak to business outcomes: Clients don’t care about your tools. They care about speed, ROI, accuracy, and staying out of legal hot water.

5. Develop Your Authority Engine

• Case studies with teeth: Detail your impact, internal and external, process, and what changed. No fluff. No filler. Focus on strategic thinking and results for the client and the agency.
• Client testimonials that sell: Ask clients to speak to your judgment, responsiveness, and outcomes, not just that you were “great to work with.”
• Apply for awards selectively: Go after categories that showcase business impact, not just creative flair.

6. Highlight Real Analytics Mastery

Data is not optional. It’s how marketers justify spend, secure budgets, and sleep at night.

• Invest in data competency: If you’re weak here, fix it fast. Use consultants or hire specialists.
• Report like a grown-up: Predictable, professional reporting builds trust. Silence and spin destroy it.
• Turn data into insight: Don’t just show numbers. Tell clients what to “do” with them. That’s what they actually want.

7. Make Your Website a Conversion Machine

• Don’t be boring or outdated: Most agency sites read like a snooze-fest and look like 2020. If yours hasn’t been seriously updated in over two years, it’s time. Yours should punch above its weight and signal confidence.
• Show POV, not personality: This isn’t your dating profile. Prioritize clarity, specialization, proof, and process over quirkiness.
• Make the CTA obvious: If your site doesn’t make it easy to understand your value and hard not to book a call, you’re invisible.

8. Show Up and Engage Publicly

• Flood the zone: Blog, post, podcast, guest-write. Just make it smart and not a warmed-over trend recap.
• Engage like a human: Comment with substance. Challenge with respect. Get noticed by adding signal to the noise.
• Observe and adapt: Watch what content performs. Double down on what earns attention from the right people.
• You’ll be discredited if your content looks, sounds, or even hints of AI. You are the master of AI. Don’t be lazy.

9. Establish Your AI Ethics & Privacy Policy

• Spell it out: Have a visible policy outlining where, when, and how you use AI, especially in deliverables and data handling.
• Protect your clients: Address IP, brand safety, and compliance. Most AI tools aren’t built with these in mind. You should be.
• Lead the conversation: If you’re one of the first agencies talking openly about ethical AI, you’ll earn trust that others are scrambling to build. If you can demonstrate it, you win.

10. Train your AI to Reflect Your Voice, Values, and Vision

Most agencies ask AI to sound smart. The best agencies train it to sound like them.

• Don’t dump random inputs into the AI. Be intentional. Be consistent across all users. Gather your strongest thought leadership, smart client emails, strategy decks, voice recordings, anything that reflects how you think, write, and speak when you’re at your best.
• Build your agency’s custom GPT: I use ChatGPT Pro. Upload your best material, tag it, and start training. Give the AI feedback. Refine the tone. Stay vigilant. You’ll have a version of AI that drafts like your top strategist and edits like your most trusted creative.
• Scale quality, not just volume: It’s about scaling the kind of thinking that actually wins business. When AI sounds like your agency, sharp, insightful, and human, you get more leverage without losing your edge.

Whatever uniqueness you define for your agency, your business proposition is your promise of the value you provide to your future clients, in AI mastery and the other things agencies do well. It should reflect your USP, secret sauce, magic, and other things different from most agencies. It’s got to be clear and concise and answer the fundamental questions a marketer considers when evaluating an agency for fit.  

• What the agency does: The core services you offer (e.g., branding, digital marketing, creative campaigns, AI assistance).
• Who the agency serves: The target industries or types of clients you specialize in (e.g., startups, healthcare, B2B).
• How the agency delivers value: The unique approach, expertise, or methodology that sets you apart and benefits clients (e.g., data-driven strategies, creative innovation, personalized service).
• Why clients choose you: The compelling reasons clients should select your agency over competitors (e.g., better ROI, deeper industry understanding, more agile and responsive).

It answers the question: “Why should I choose this ad agency over the other?”

Spoiler Alert: It’s not “great relationship building,” “lots of awards,” “an inclusive culture,” or “doing good work.” Too many agencies use these ambiguous, inconsequential characterizations because they won’t or can’t do the hard work to articulate their meaningful differences, the things that the marketers they’d love to work with would read and say, “finally, that’s what I want, what I need!”

Living Out Your Uniqueness

Authenticity is paramount for challenger agencies, and AI can be an authenticity killer. Larger clients, in particular, are increasingly discerning and seek partners who are skilled, authentic, and fully aligned with their values. That is why training AI is mandatory. As you think this through for your agency, consider these individual and agency-wide behaviors and how you can make them authentic to what you say you are, including AI.

1. Walk the Talk – Internal Alignment

• Core Values Driven Operations: Ensure the agency’s internal culture and operations genuinely reflect the values stated in the business proposition. If you promise transparency, be transparent in your client communication, internal processes, and pricing. If you emphasize” innovation”, foster a culture of experimentation and learning within your team.
• Team Embodiment: Your team must be living ambassadors of your USP. Hire and nurture talent that aligns with your agency’s core values and expertise. Ensure they understand and believe in the agency’s promise and can articulate it authentically.
• Consistent Messaging: Ensure your internal communications, training, and onboarding processes reinforce the business proposition. Everyone in the agency should be on the same page and understand the agency’s core identity.

2. Demonstrate Expertise Through Actions, Not Just Words

• Prove It with Portfolio and Case Studies: Showcase work that directly exemplifies your business proposition. If you claim to be “data-driven,” your case studies should highlight data analysis, metrics, and measurable results. If you focus on” creative innovation,” your portfolio should be filled with groundbreaking and original campaigns.
• Content Marketing as Proof: Create content (blog posts, articles, webinars, social media content) that consistently reflects your expertise and thought leadership in your chosen niche. Share insights, research, and perspectives demonstrating a deep understanding of your target market’s challenges and opportunities.
• Industry Engagement: Actively participate in industry events, conferences, and associations. Speaking engagements, awards, and thought leadership pieces in industry publications all build credibility and demonstrate authentic expertise.

3. Refine and Evolve Authentically

• Regularly re-evaluate your business proposition to ensure it accurately reflects your agency’s strengths, values, and evolving market landscape. Authenticity isn’t static; it requires ongoing self-reflection and adaptation, especially since AI is evolving at warp speed.
• Seek Client Feedback on Proposition Delivery: Actively solicit client feedback on campaign performance and how well you live up to your business proposition. Use this feedback to refine your approach and ensure you are truly delivering on your promise.
• Stay True to Core Identity: While evolving is important, avoid chasing trends not aligned with your core values and expertise. Authenticity means staying true to your agency’s unique identity while adapting to market changes.

You can’t win by playing the same game as the status quo agencies. For challengers, a relevant and compelling business proposition is the foundation for attracting bigger and better clients. Your strength isn’t size; it’s focus and authenticity. Define your expertise with laser precision. Live your business proposition in every action. Quit trying to be all things to all people. Stop blending in and start standing for something real and meaningful to the brands you want. AI is hot right now and mastering it is one way to attract clients who aren’t just bigger, but better; clients who value genuine expertise, authentic partnerships, and human perspective.

Now go plant your flag where it actually means something.

Happy AI-enabled Prospecting

If you are considering an AI-powered new business strategy for your agency, we should talk. If you are not, we need to talk. I always enjoy exploring what’s new, what’s working, and what isn’t. Find a time on my calendar, and let’s solve the world’s problems, at least those related to business development. If you like this post, give it a thumbs up, forward it to a friend, or leave me a comment. Don’t forget to sign up for my New Business Newsletter. While you are at it, let’s connect on LinkedIn.

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