In a dramatic shift, a recent report reveals that almost half of all marketers believe AI will drastically reduce their need for agencies.
According to a report published by Performance Marketing World, 48 per cent of marketers believe AI will make their companies less dependent on agencies, marking a pivotal shift in the industry.
Marketing and PR agencies face an existential threat, according to the report, spearheaded by the impact of AI and its potential to replace human work.
Keeping up with AI is essential for PR
In a July 2024 interview with Campaign Asia, advertising guru Martin Sorrell, founder of S4 Capital, said that big tech platforms such as Meta and Google are getting closer to clients, edging out the need for agencies. He cited artificial intelligence as being one of the accelerators of this trend.
For traditional PR agencies and even in-house comms and marketing teams, the rise of AI presents a dual challenge: upskill or perish.
Data-driven insights and AI’s predictive capabilities already have or will soon render many manual tasks obsolete. Those unwilling or unable to adapt will likely see their roles diminished or eliminated altogether. In fact, organisations are already exploring how AI can replace costly agency retainers.
By bringing PR capabilities in-house and automating tasks like content creation and editing, media outreach, sentiment tracking, and audience segmentation, businesses can significantly cut costs while maintaining, or even improving, efficacy of their campaigns and operational efficiencies.
Data-driven insights are the smart way forward
In a world increasingly driven by real-time insights and first-party data, as I foresaw 12 years ago in my book Back to the Future of Marketing: Provolve or Perish, data analytics has indeed become the “coach” of Team Marketing. Today, the convergence of AI and data-driven decision-making has moved from prediction to reality, forcing PR professionals and agencies to adapt, or risk obsolescence.
The focus has shifted from vanity metrics, such as clicks and impressions, to profitability KPI’s enabling companies to track how marketing initiatives directly impact the bottom line. For large organisations, this realignment means smarter allocation of resources. Marketing teams can focus on channels and strategies that yield the highest ROI rather than spreading their efforts thin across less effective campaigns.
Artificial intelligence will play a pivotal role in transforming PR and marketing. As organisations move toward AI-driven tools, they are not just improving content creation or automating repetitive tasks. They are fundamentally changing how strategic decisions are made. Businesses can leverage AI for predictive analytics, audience segmentation, and even media monitoring, all in real time.
The qualities needed to drive the future of PR with AI
As companies embrace AI-driven marketing and PR, the role of professionals in the industry has to rapidly evolve. The future head of an AI-first PR department must have an analytical mindset, technical proficiency, and strong strategic thinking skills. They must be familiar with an ever-expanding list of AI tools that suit every occasion and possess a solid foundation in data science to interpret the real-time analytics provided by these tools, guiding strategy based on actionable insights.
Agencies that wish to remain competitive will need to adopt AI technologies that allow them to offer more value-added services, such as strategic consulting, crisis management, and brand storytelling—areas that are still difficult to fully automate.
The message is clear: those who refuse to upskill in AI and data analytics will be left behind. As predicted in my book, Mr Data Analytics has become the “coach” in team marketing, guiding every tactical move, placing PR professionals at a crossroads. Upskilling is no longer optional; it’s essential for survival. The industry is evolving, and only those prepared to leverage these new technologies will thrive in the future.
In this new reality, marketing teams that can harness AI to create personalised, data-driven campaigns will not only cut operational costs but will also gain a strategic advantage. Those who fail to adapt, whether individuals or agencies, will indeed perish.
By George Kotsolios, Managing Partner, Leidar MENA
