LATEST DEVELOPMENT
Despite Sam Altman predicting AI will replace 95% of ad agency work, OpenAI hired traditional agency Isle of Any for its first global brand campaign shot on 35mm film, exemplifying the advertising industry's pivot toward human creativity as its competitive advantage while Forrester predicts 15% of agency jobs eliminated in 2026 due to automation and efficiency pressures.
INDUSTRY TALK
"AI is redefining the role of agencies. The ones that will endure are those evolving into ideas-driven consultancies, blending human creativity with AI-powered technology to unlock new possibilities for brands. It's about creativity moving at the speed of technology."
BY THE NUMBERS
Market dynamics include:
20,000+ attendees at Advertising Week New York
$10B+ projected US influencer marketing spend in 2025 (up 23.7% YoY)
15% of agency jobs predicted eliminated in 2026
95% of ad agency work potentially automated by AI (per Altman)
Paid media budgets increasing as percentage of marketing spend since 2023
HUMAN-AI BALANCE THEME
Advertising Week sessions included:
"Making marketing more human in the age of AI"
"Human over hype: The power of niche creators, collaboration and real connections"
"AI needs a human layer"
ChatGPT as "behind-the-scenes co-creator" in OpenAI campaign
Human imagination supported by technology as core campaign message
CREATOR ECONOMY SHIFT
Strategic evolution includes:
Creator marketing shifting from media agency tactic to creative agency strategy
Creative agencies becoming "orchestrators of tech and creator access"
Creators taking on ideation and production responsibilities
TikTok creator Tiffany Baira working for DeBeers, Ulta Beauty interviewing customers
Focus on people and experiences over products in campaigns
AGENCY RESTRUCTURING
Industry transformation includes:
Talent silos breaking down (data analysts working with creative strategists)
Major consolidations: Omnicom acquiring IPG, WPP merging agencies
Havas and Horizon Media joint venture formation
One-stop shop model for servicing marketer needs
Publicis Groupe crediting success to connecting paid ads with commerce, influencer marketing, AI
THE BOTTOM LINE
The advertising industry's embrace of "human" credentials as its superpower reveals a strategic repositioning where agencies compete on creativity, authenticity, and consultative relationships rather than operational efficiency—acknowledging that while AI can automate production and placement, the ability to craft emotionally resonant stories, orchestrate creator partnerships, and build brand trust in a low-trust world remains distinctly human domain that commands premium value.