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Digital Essays 2025: Rewiring the business of advertising

Fusion5’s Pascal Khazzoum outlines how AI learning systems are transforming agency operations and outcomes.

the business

Artificial intelligence (AI) is rapidly transitioning from lab demonstrations to daily operations, a shift exemplified not only by humanoid robots entering real-world pilots but, more tellingly, by the compounding performance of learning systems already at work in fields like advertising. While some high-profile launches such as Rabbit R1 and the Humane AI Pin miss the mark (reminding us that AI creates value only when it genuinely improves a job, fixes a problem, or enhances an outcome),  embodied AI is accelerating with 1X’s NEO, Tesla’s Optimus and pilots from other companies. With this, the signal for our industry is clear: when a model has the right inputs and oversight, it moves the needle and keeps learning.

This evolution is most evident inside the major platforms, where manual knobs have given way to integrated learning systems. Meta’s Advantage suite, Google’s Performance Max, and similar tools from TikTok, LinkedIn and others have folded targeting, bidding, placements and creative selection into automated learning loops. The practical effect is less guesswork and more strategic steering; the platform explores who is responding and where new demand may lie, while our role is to provide clean signals, monitor its moves and correct course quickly.

This new reality fundamentally changes how teams work. We no longer wait for post-mortems, as models now flag momentum or fatigue in real-time, rotate formats before creative burns out, and allow the brief to evolve with the results. With strategy, creative, media and analytics operating from a single source of truth, adjustments happen while audiences are still paying attention. In practice, this translates to short daily reviews, a simple decision log, and clear ownership for each change. Day to day, we focus on clarity, causality and compounding. Clarity means prioritising signal over noise, while causality involves knowing which lever – audience, context, message, or media – moved the metric. Compounding is the ultimate payoff, where each impression teaches both the system and the team, making tomorrow’s setup sharper than yesterday’s.

This shift elevates every function. In media planning, scenario models set realistic ranges before launch, and then the system learns which combinations win and rebalances spend, a move that does not shrink a planner’s role, but rather frees them from manual booking to focus on connecting choices to business outcomes and elevates judgement. Meanwhile, creativity also benefits immensely when informed by live context; multilingual social listening helps us read tone across languages, shaping the brief and asset order to manage fatigue without drifting off-brand. AI can point the direction, but it takes people to give it a voice and land it with cultural sense.

“We no longer wait for post-mortems, as models now flag momentum or fatigue in real-time, rotate formats before creative burns out, and allow the brief to evolve with the results.”

The proof is in the performance. In a recent campaign, shifting from tight manual targeting to audience AI with learning-based budget automation saw our cost per lead fall by roughly 50 per cent, with lead quality improving because the system continuously explored adjacent demand while we fed back conversion data, particularly on which leads converted after the first call and through the Customer Relationship Management (CRM) system.

To match this pace, agency operating models are evolving into cross-functional pods that own a learning agenda. Each pod tests within clear guardrails: the KPI we want to move, the hypothesis we’re testing, the acceptable risk and the decision rule. When a test wins, we scale it; when it doesn’t, we close it quickly and log the learning to avoid paying tuition twice. This environment favours hybrid talent – people who can interrogate data, iterate creative without losing tone, and translate a model’s output into a story a CFO can trust.

In this accelerated landscape, governance matters as much as speed. Since models can inherit bias and drift, we maintain human review for all public-facing content (language, visuals, claims and targeting), checking cultural nuance as a rule and being meticulous about data rights and consent. The aim is simple: be fast, be right and
be respectful.

For decision-makers, this approach changes the conversation from presenting a wall of charts to clearly answering three questions: what changed, why it changed, and what we are doing next. On platforms pushing deeper automation, the winning agencies will be those that can steer intelligently rather than just set up campaigns – the difference between renting a tool and building a lasting capability.

The direction we are heading in is clear: agencies are evolving from production partners to intelligence partners. Our core job remains creating ideas that connect, but our added responsibility is to make the system around those ideas smarter with every impression. While AI gives us new ways to see, measure and predict, it is empathy that gives the work its meaning. The future belongs to leaders who master both the precision of data and the depth of human understanding, forging a new kind of agency that unites these strengths to deliver faster, smarter, and more relevant communication.

By Pascal Khazzoum, Social Media Director, Fusion5.