The agency business model is shifting from production house to strategic orchestrator. This isn’t just about adopting AI tools — it’s about fundamentally repositioning what agencies sell.
What Gets Commoditized by AI:
- Content production: -1000% cost via AI generation
- Image/video generation: Sora 2, Nano Banana replace studios
- Copy drafting: LLM-generated at negligible cost
- Basic media buying: Self-serve platforms dominate
What Gains Strategic Value:
- Cross-platform allocation: Google/Meta can’t do this (unique)
- AI tool orchestration: Multi-tool integration expertise
- Brand strategy: Human judgment irreplaceable
- Consumer behavior insight: 40+ years of data moat
The Business Model Shift:
Bodies + Hours → Outcomes + Value
The 4As (American Association of Advertising Agencies) report: “Charging for bodies and hours will become more challenging in a world made more efficient by machines.”
This is part of a comprehensive analysis. Read the full analysis on The Business Engineer.
