With AI, Do Agencies Die?

There is hardly an area of everyday life that has not long been permeated by AI.

AI creates our fitness plans, discovers new medicines, and compares the most promising stocks—at lightning speed, even in turbulent times like these. It already reviews tax returns in many cantons. Thanks for that. And for all things superhuman, an AI Jesus is now answering questions of faith —on a screen—in St. Peter’s Chapel in Lucerne. A full-blown AI religion is still a long way off, but it is probably only a matter of time. After all, hardly any other technological achievement has recently enjoyed as much trust as artificial intelligence. In a world in which powerful (state) leaders are completely unpredictable and commitment and a sense of responsibility are seen not as strengths but as weaknesses, AI provides us with exactly what we long for: Secure answers. Fast, effortless, convenient, right from the sofa. Enough philosophizing. Back to the question:

Well, what has changed in our industry?

Two years ago, AI was still seen as a crazy assistant. Today, every employee has a team of AI assistants – the dream team, including players like Michael Jordan in top form. This team never gets sick, has few airs and graces and makes no special demands. But most people still prefer to talk to people. Our work is ultimately always aimed at people. And only we can feel, love, live and laugh. We therefore still need people to make recommendations, assess situations and take responsibility.

Yes, “agencies are here to blame” – we take responsibility, in success and in failure. It is easier to hold agencies accountable than anonymous AI systems or in-house teams. We can only send an invoice with satisfaction and a clear conscience when the goals of our clients and requirements have been achieved. AI, on the other hand, debits the account on time every month, regardless of the result. Our own AI budget is now in the mid-six-figure range – per year.

Future Value Comes From Expertise — Not Hours

Many agencies have forgotten this — or never learned it. Big agencies still have layers of managers moving files and data from A to B. These tasks are now being absorbed by AI.

AI processes and analyzes data faster and more efficiently than any human. But it’s people who:

• Deliver crucial impulses

• Surprise and inspire

• Offer fresh perspectives

AI tends to follow familiar patterns, while the best agency talent consciously chooses uncomfortable, new paths — even when they seem odd at first. Truly new ideas often seem strange at first glance — but worth noticing. (The German word for “strange” literally means “worthy of notice.”)

And no — I’m not claiming creativity is purely human. AI can be creative — after all, we built it to be. The universe gives us the ingredients. Both people and AI can mix them. That’s creativity. While machine learning combines the known in optimal ways, AI also invents novel and unusual combinations — incredibly fast.

We Remain the Most Important Interface

AI also creates new and unusual combinations – at incredible speed. Yet humans remain essential to drive innovations forward, evaluate its usefulness, communicate it effectively and implement them courageously.

Albert Einstein said: “Imagination is more important than knowledge.” That’s why we remain the most important point of connection, especially in our interactions with customers and stakeholders. Interviews and discussions with our customers’ customers provide indispensable insights alongside quantitative AI analyses. AI assistants support these processes – but we continue to take responsibility.

Key question: Do we still need agencies at all?

Not necessarily.

But the real question is:

Can companies now do everything themselves using AI and automation?

Companies have to decide: When do they rely on insourcing and when on external specialists?

Our AI analysis of 20 interviews with leading CMOs clearly showed that the main reason for insourcing is – unsurprisingly – cost savings. But “cheaper” alone is not a sustainable strategy.

So far, there are only a few examples where cost savings have actually been successfully combined with other relevant KPIs. Swiss Companies such as Galaxus and On Shoes are rare exceptions, investing consistently and sustainably in their brand and creative marketing – which in turn makes their spending on Google, Meta, TikTok & Co. much more efficient.