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How AI is reshaping the economics of marketing

King Salman Park Foundation’s Simon Shaw unveils how artificial intelligence (AI) is the commercial model driving creativity through three interconnected forces: efficiency, excellence and effectiveness.

AI efficiency

Artificial intelligence is not just changing marketing. It is changing the economics of marketing. For the past few years, our industry has been fixated on AI as an efficiency lever – the margin point glint in the CFO’s eye. That is the wrong starting point.

We know the answer to the question: Can AI make us more efficient? The answer is yes. It is how we redeploy the value it releases into the true product of our industry: creativity, ideas and people.

The real debate is not whether AI will kill creativity or drive efficiency or engagement. It is how we use AI and automation to increase efficiency, elevate creative excellence, and drive effectiveness – simultaneously. When used well, AI does not dilute creativity. It creates a new economic model to fund it.

Viewed through this lens, AI’s impact across brand and marketing can be understood through three interconnected forces: efficiency, excellence and effectiveness. When aligned strategically, they form a self-reinforcing cycle that transforms execution, emotion and experience.

Efficiency: Rewiring the operating model

AI is fundamentally an efficiency engine. Across content production, media buying, analytics, segmentation, CRM workflows and reporting, automation removes friction and releases value. Tasks that once required days now take minutes. Asset adaptation happens at scale. Reporting is real-time. Media optimisation is dynamic,
not retrospective.

This matters commercially. When agency and client are aligned, efficiency enables reallocation of investment, faster implementation and improved return on marketing spend. It reduces cost per output, shortens timelines and increases agility. It allows marketing teams to move at the speed of culture rather than the pace of internal process.

But the real opportunity is not cost saving. It is capital reallocation. When AI reduces operational burden, leadership faces a strategic choice: bank the savings – or reinvest them. The organisations that will outperform are those that channel efficiency gains into higher-order strategic thinking and creative ambition. Handled correctly, efficiency becomes the fuel of creativity.

Excellence: Reinvesting in creative and strategic thinking

Excellence does not come from automation. It comes from imagination, judgement and taste. AI cannot – yet – feel cultural nuance. It cannot sense the weight of a national moment. It cannot instinctively recognise when to zig while competitors zag.

What it can do is create space. When teams are no longer consumed by repetitive production tasks, they can focus on what truly differentiates brands: insight, narrative tension and cultural relevance. With clients willing to reinvest rather than bank efficiency gains, this presents real opportunity.

The classic allocation of budget – 60 per cent tried and tested, 30 per cent new, 10 per cent innovation – may evolve. If AI enables us to recover 15–20 per cent in operational efficiency, the strategic question becomes: do we remove it from the system, or reinvest it in higher creative ambition?

Used intelligently, AI becomes a strategic co-pilot – testing hypotheses, modelling scenarios, identifying micro-segments – while creative leaders make the final judgement call. The role of the marketer shifts from producer to curator. Automation handles scale. Humans handle meaning. And meaning is what creates emotional impact.

Effectiveness: From output to impact

The third ‘E’ is effectiveness – and this is where creativity becomes commercially undeniable.

We already know that higher levels of creativity drive superior business results. Research from WARC and Cannes Lions consistently demonstrates that creatively awarded campaigns outperform on market share growth, profit uplift and even share price performance. Creativity is not decoration; it is a multiplier of effectiveness.

AI strengthens this case. Today, AI-driven systems allow us to connect marketing investment directly to behavioural outcomes, revenue impact and reputation movement. Predictive modelling improves media allocation. Real-time sentiment analysis sharpens messaging. Personalisation engines tailor journeys at scale.

Execution becomes adaptive. Experience becomes dynamic. But at the centre remains a distinctive creative idea. Effectiveness becomes measurable not only in clicks and impressions, but in sustained brand equity and long-term enterprise value.

And here lies the cycle:

  • Efficiency frees up investment.
  • That investment drives excellence.
  • Excellence increases effectiveness.
  • Greater effectiveness justifies further investment.

It is a self-reinforcing system. There is understandable concern that automation risks making marketing colder and more mechanical. For some organisations, that will be true. Driving to the bottom is always easier than driving to the top.

But those who lead will use AI to elevate standards, not reduce them – reinvesting in better work, stronger ideas and more capable people.

In the end, AI is a tool, but strategy remains the compass. Creativity is the fuel. Leadership is the driver. If we align efficiency, excellence and effectiveness, AI does not threaten the soul of marketing. It strengthens what makes us commercially powerful and culturally magnetic: our creativity.


By Simon Shaw, Chief Communications and Marketing Officer, King Salman Park Foundation