Preserving Agency Value in the Era of GenAI Transformation

Topic

  • Artificial Intelligence

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GAI is a powerful collaborator that enhances agency capabilities. When communicating with clients about the use of GAI in agency work, it’s crucial to convey that the technology is not a replacement but a valuable collaborator. It is not exclusively about efficiency gains; it is equally about improving the quality of the work.

The intrinsic worth of services provided needs to be a consideration in establishing agency fees. Our new guide offers a 11-point approach for framing the use of GAI to help all stakeholders appreciate the value GAI adds to agency services while emphasizing that human expertise remains at the core of great work.


An 11-Point Approach to Using GAI in Agency Work

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Define AI As a Collaborator

GAI is a tool that enhances capabilities. It doesn’t replace human expertise but works alongside it to improve outcomes. An Accenture study of over 1,500 companies demonstrated that firms achieve the most significant performance improvements when humans and machines work together.

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Managing Expectations

While AI enhances efficiency, clients should not expect great results from simple prompts or minimal input. Domain expertise remains important, and the quality of results depends on the depth and specificity of the instructions and data provided. To quantify this point, one example could be the winner of a 2023 Colorado State Fair art competition. The winning image was generated by Midjourney but the artist claims to have input “at least 624” prompts and spent 80 hours to get the GAI engine to output the image he wanted.

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Define Output First

Most successful projects start with defining the desired output and objectives. GAI is a means to achieve these goals efficiently while also improving the effectiveness of the work. The focus remains on the quality and relevance of the final deliverables.

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Highlight Expertise

Human expertise remains critical to the process. Clients should understand that AI relies on human guidance and judgment to function effectively. Human knowledge and experience are fundamental to the success of any project. AI is not infallible, but rather is prone to error or “hallucinations” and as such, human oversight and verification is critical for accuracy, safety, ethical considerations and responsible AI usage.

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Ongoing Investment Required

Implementing GAI technologies involves substantial investments, including costs for software, licensing, data management, hardware/cloud computing, platform setup, legal safeguards, and employee training. Organizations must also invest in hiring and educating specialists, which can be costly due to high demand and limited talent. Clients must choose between internal development or outsourcing to an agency for these components.

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Continuous Improvement

Custom AI tools require ongoing maintenance, updates and improvements over time to stay effective. Meanwhile 3rd party tools are evolving quickly. To stay relevant and effective, agencies must constantly be training and re- training staff to get the most out of these tools.

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Emotional Intelligence

Advertising often relies on evoking emotions in the audience. While AI can analyze emotional responses, human intuition and creativity are essential for crafting content that truly connects with people on an emotional level.

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Human Elements

GAI platforms struggle to replicate human elements such as creativity, empathy, insight identification, artistic judgment, understanding brand voice and cultural nuances and decision-making rooted in emotion and logic. These qualities are essential for understanding client requirements as well as delivering high-quality and impactful work. Over-reliance on GAI systems has proven to have a negative impact on work quality as well - a recent BCG study found that unchecked usage of GAI systems can decrease diversity of thought in teams by more than 40%.

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Augmenting Human Thinking

GAI is a tool that augments human thinking and problem-solving. It can process vast amounts of data and provide insights that humans might miss, but humans are better at making strategic decisions about which content to use, when to use it, and in what context. Humans can analyze market trends, competitor strategies, and audience insights to make informed choices.

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Accelerating Grunt Work and Liberating Great Work

GAI is not entirely about saving time or resources. It can automate routine, low-value tasks and accelerate production of ideas - in the hands of a highly skilled employee. Often, an agency spends more time bringing an idea to life than it does coming up with the idea. GAI will allow that equation to flip. More time can be spent on higher value tasks including the development of breakthrough ideas and less time bringing those ideas to life.

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Collaborative Advantage

Finally, the synergy between human expertise and AI capabilities offers a competitive advantage. Clients receive the benefits of both advanced technology and human intuition, leading to superior outcomes.

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"Generative AI is enabling agencies to optimize their workflows, freeing up time to focus on high-value tasks like strategy and creativity. When used as a collaborator, AI enhances our capabilities and ensures that the quality of work remains exceptional."

Marla Kaplowitz
4As Chief Executive Officer

Using Generative AI Safely

This insightful joint meeting features Chiara Cummings, Associate General Counsel at WPP, discussing the responsible use of generative AI in advertising. Moderated by Sal Conte, the session explores intellectual property rights, data ethics, confidentiality, and legal challenges in AI outputs.

Participants include leaders from advertising legal and business committees. Highlights include industry examples, client risk management, and emerging legal perspectives on AI-generated content. Essential for anyone navigating AI's implications in creative industries.

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