3 Reasons Why Is AI Impacting Marketing Right Now

-Agency Probs

May 28, 2025 • Estimated Reading Time: 7 minutes

1. AI Provides Automation That’s Cheaper Than Human Capital

The dark reality is that in the world of corporate, private investors, or public shareholders we are all just a number. If it costs less to use AI to achieve higher profit margins with fewer people, companies will pursue this option. Here are a few ways in 2025 that automation and AI are impacting the marketing and advertising space.

  • 5/28/2025 Nvidia Reports Earnings After Closing Bell: Nvidia is the darling child of AI. What started as a software and video game focused company has evolved into the megacap giant and godfather of AI. You can see the correlation of OpenAI launch of ChatGPT and Nvidia’s growth below. Companies are investing heavily in AI to replace daily administrative tasks.

  • Software & Tools Advancement: AI has been around for some time in media buying platforms to identify audiences, optimize media (machine learning). But as these tools advance there will continued progression towards fully automated model. Think of all those stock brokers making $400k a year back in the day that are now obsolete thanks to E*TRADE and electronic trading platforms. This will impact the human element in planning and provide significant cost savings.

  • Clients Take Work In-House: Clients offload work to agencies because they don’t have the bandwidth to support a wide range of tasks. AI has made it easier for organizations not just in marketing to execute work more efficiently by relying in AI to supplement or add new skill sets. As a result more companies are taking work in-house versus relying on third party vendors or services. It’s why consulting orgs have also been under the gun because demand isn’t as high.

It would be great if AI was being used to create automated house cleaning or plumbing but the reality is AI is targeting marketing and creative work. While AI will eventually impact legal, finance, and other industries, it’s coming for marketing first. The way we see it there are two categories of creative being impacted right now:

Static Creative Impact

  • Image Editing /Variation: Adobe Firefly and Canva AI tools are making it easier to make quick copy or color changes to images. Lowering the demand for creative resources.

  • Copywriting: AI is expanding quickly, making it easier to create email subject lines, website SEO, and social media captions.

Video Creative Impact

  • Creative Headcount: Gone are the days of crazy expensive pre-production and ideation. AI can easily provide creative ideas for agencies and clients reducing the human element.

  • Video Editing: While this is still WIP, similar to generation of humans, editing and cutting clips for channel adoption is now easier with AI.

3. MegaCap Companies That Impact Our Industry Is Heavily Invested In Making AI Work

Meta, Amazon, Google, Microsoft, OpenAI, Adobe and every big company is investing in AI. The dark reality is that a lot of these AI concepts are focused on creative related work; Google is not talking about their GenAI model that can audit legal contract work and Meta is not launching a tool to make financial advisors obsolete. Nobody is talking about it but most tools have features for images and video, both of these directly impact marketing and advertising more than any other industry. For $129 a month you have access to a creative agency at the palm of your hands with Veo 3. While their work is not close to the amazing creative work it’s enough to make those smaller and mid-cap clients second guess paying for creative agencies at full scale.

Google Unveiled Video AI Software On May 23rd Called “Veo 3”

3. Video AI Can Lower Production Costs By Creating More Scalable Ideation and Storyboarding Than Ever Before

  • What Video AI Can Do: Upfront costs related to campaign ideation, concepting and providing vision boards or pre-production work costs should help agencies save dollars. However, the resulting impacting is a smaller creative team expected to leverage these tools, and compressed client list that are seeking creative support from agencies vs. the big blue chip clients willing to spend on creative concepts.

  • What Video AI Can Not Do Yet: For the foreseeable future nothing can replace unique human, emotionally driven ideas. Yes AI can come up with email subject line copy and social media captions, but it’s still just there. P&G’s “Like a girl” campaign or Michael Jordan’s Nike ‘Maybe It’s My Fault’ were built by understanding what makes us human.

😒Layoffs and M&A

There are 3 AI is going to push agencies to become more lean. Combined with lower consumer demand

GroupM Layoffs: Groupm has over 42,000 employees worldwide and as of 2023 is the largest media agency in the world. Recently however news has been spreading and actual layoffs have happened as the senior leadership team tries to become more profitable. making it one of the largest agencies under WPP.

Publicis Aquires Captiv8: Influencers are becoming increasingly important and Publicis buying one of the largest influencer agencies / resources speaks volumes. Publicis started the year by acquiring Lotame and now this. Large agency groups like Publicis are setting the tone that buying up the smaller agencies or solutions is easier than building anything new for now.

Cannes Lions Announces They Will Have Safe Spaces For Attendees Given The Rise Of Complaints And Report Incidents Related To Sexual Assault

 (Linked Image To The Full Story Is Below)

Share This Newsletter With Your Coworkers: