In June 2025, during the Cannes Lions International Festival of Creativity, Meta made a quiet but game-changing announcement.
By the end of 2026, the company plans to fully automate ad creation across its platforms. This includes every step of the process: copywriting, creative development, targeting, optimization, and performance analysis. All of it will be handled by AI.
For brands, this sounds powerful. For agencies, it's a pivotal moment.
Shortly after the announcement, shares of major ad holding companies like WPP took a hit. The markets responded not just to the innovation but to what it represents—a major shift in how digital advertising is built, bought, and managed.
The Old Model Is Breaking
For decades, agencies have played the role of creative architects and strategic intermediaries between brands and media platforms. Their value has been built on four pillars:
- Strategy and planning
- Creative and content production
- Media buying and campaign management
- Measurement and reporting
Each of these pillars is now being reshaped by AI.
Self-serve platforms have already been disrupting this model. Meta’s AI-first roadmap takes things further. It lowers the barrier to entry and removes friction from the process. A small business owner could log into Meta’s Ads Manager, input a few product details, and launch a high-performing campaign in minutes.
This is not a hypothetical. It’s quickly becoming reality.
AI Is Not the Threat. Commoditization Is.
Technology has disrupted agency operations before. Google Ads, social platforms, DIY website builders, and tools like Canva have all reduced reliance on professional services.
What makes this different is the speed and scope of automation.
AI is not just speeding up the ad process—it is compressing it. Campaign planning, copywriting, audience targeting, testing, and reporting can all happen within a single interface, often within minutes. That kind of accessibility can turn highly specialized agency offerings into commodities.
The real threat is not AI itself, but the erosion of perceived value in agency deliverables.
Execution Is No Longer Enough
If your agency is primarily focused on production—delivering copy, visuals, campaigns, and reports—you may already be behind.
AI excels at execution. It is fast, scalable, and increasingly able to generate work that checks the boxes of "good enough."
To stay competitive, agencies must shift focus from what they make to what they help clients achieve. That means prioritizing:
- Business intelligence and strategic insight
- Brand storytelling rooted in audience psychology
- Community-building and cultural fluency
- Multi-platform performance strategies
- High-level advisory and consulting roles
The future of agency value lies in outcomes, not just outputs.
The Agencies That Will Win
This is not the end of the agency model. It is a defining moment that separates those who adapt from those who cling to the past.
The agencies that will succeed in the AI era are the ones that:
1. Use AI to improve efficiency, not replace thinking
Let AI handle first drafts and repetitive tasks. Spend more time interpreting data, refining strategy, and leading creative direction.
2. Specialize in what they know best
Generic service providers are easily replaced. Agencies with deep industry expertise, niche audience knowledge, or unique positioning will become harder to replicate.
3. Move upstream into strategy
Agencies should work with clients to define brand purpose, go-to-market plans, and campaign architecture. This goes beyond simply executing tactics.
4. Develop proprietary systems and thinking
Frameworks, methodologies, and creative philosophies that are unique to your agency create long-term differentiation.
5. Educate and empower clients
Brands want to understand the thinking behind decisions. Agencies that share knowledge, train internal teams, and support smarter decision-making will build stronger relationships.
What This Means for Clients
For brands, this shift creates two clear paths:
Option 1: Use AI-powered tools to go self-serve
If you are a small or emerging brand with limited budget and straightforward goals, AI tools can get you to market quickly. You may not need a traditional agency at all.
Option 2: Invest in strategic partnerships
If your organzation or business is growing like Jinya Ramen, entering new markets like Bundaberg Brewed Drinks, or operating in a complex landscape like City of Surrey, partnering with an agency that provides strategic clarity and deep expertise will be critical.
AI will make it easier to launch ads. It will not make it easier to build a brand. That’s where human experience and creative judgment still matter.
Why This Is an Opportunity
This moment of disruption is also a moment of clarity.
Just like the digital shift forced traditional agencies to rethink their value, the AI shift is now forcing digital agencies to evolve. The ones that thrive will stop competing on volume and start competing on value.
The most irreplaceable agency assets are things AI cannot replicate:
- Experience
- Judgment
- Taste
- Emotional intelligence
- Business understanding
AI can generate campaigns, but it cannot guide companies through complex decisions. It cannot build culture or earn trust. It cannot inspire a team, push creative boundaries, or lead a founder through a major product launch.
Final Thoughts
Meta’s AI roadmap is a clear signal to the industry. Platforms will continue to consolidate power. Tools will become more powerful and easier to use. Execution will become more accessible to everyone.
But insight, creativity, and leadership remain uniquely human.
The question is not how agencies can compete with AI.
The real question is how agencies will use the time AI frees up to deliver even more value to the brands they serve.
Let’s Talk
If you're leading a brand through this shift, or running an agency that is actively evolving, I’d love to hear your perspective. What changes are you making to stay ahead of this transformation?