September 17, 2025 | SIGN UP
Michael Bürgi
SENIOR EDITOR, MEDIA BUYING AND PLANNING
Reading my colleague Seb Joseph's story on S4 Capital's aggressive moves on incorporating AI into its agencies' workings is somewhat chilling. The not-holdco is, as Joseph explained, saying the quiet part out loud: AI is replacing people to do the work clients want.
Of course, S4 has little choice but do this – it's among the worst performing agency groups around, and saw revenue continue to drop in its latest earnings report earlier this week. To what degree will the agency holding companies and large independents follow suit?
For now, AI has proven more helpful and cost-effective on the creative side of the agency world than media – but that's just for now. The AI tide eventually will swamp data-crunching, outcomes measurement and even audience crafting, and it's already started. Look no further than Known or Brandtech Group for evidence.
And, as one media analyst told me, CMOs at both brands and agencies quietly admit that when staff is lost to attrition, AI more often than not fills in for the departed. That part's still being said quietly, but probably not for much longer.
The question is, how well does AI do the job? And for that, I'd argue there's no answer yet.
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