PreviewYou're previewing CMO AI Spotlight. Sign in to use it.Sign in
← All lessons
L5 · Expert: the AI-ready marketing organization8 min read

The agency and vendor model when AI makes production cheap

AI changes the economics of marketing services. Production and versioning get cheaper; ideas, strategy, craft and orchestration keep their value. Your agency model should reflect that.

Where things stand

  • The ANA reported in May 2023 that 82% of its members have an in-house agency, up from 78% in 2018 and 42% in 2008.
  • Klarna said in 2024 that AI helped it cut spending on external marketing suppliers (translation, production, CRM and social agencies) by 25%.
  • Mondelez built its generative AI content tool together with an agency group (Publicis Groupe) and an IT firm (Accenture) — a sign that the answer is often a new kind of partnership, not "in-house vs agency".

Sort the work, then decide the owner

Work typeOften best owned by
Brand strategy, big ideas, hero craftAgency partner or senior in-house creative
Always-on content, versioning, localisationIn-house team with AI tools
Product imagery and catalogue contentIn-house or specialist, from a product source of truth
Media buying and optimisationIn-house, agency or platform automation — with independent measurement
AI platforms and workflowsIn-house marketing ops with IT

Contract terms that matter now

  • Disclosure of AI use in deliverables.
  • Approved tools and data limits (no client data in unapproved tools).
  • IP warranties: rights to AI-assisted output; no infringing material.
  • Pricing: how AI efficiency changes fees (output- or outcome-based rather than hours).
  • Brand guardrails: agencies follow your voice guide, claims rules and disclosure policy.

Avoid

Moving production in-house without the ops capacity to run it; or paying agency hours for work AI now does in minutes.

What this means for the CMO

Review your agency roster against the work-type table. For each agency, ask: what part of this work does AI now make cheaper, and has our fee model changed?

At renewal, add AI clauses (disclosure, tools, data, IP, pricing). Keep the partners who bring ideas and craft, and build in-house strength where the work is high-volume and repeatable.

Be open with agencies about the direction. The best partners will propose new models themselves, sharing efficiency gains and bringing AI capability you don't have in-house.

Real example

The ANA reported on May 2, 2023 that 82% of its members have an in-house agency, up from 78% in 2018, 58% in 2013 and 42% in 2008. Klarna said in May 2024 that AI helped it reduce external marketing supplier spend by 25%. Source: ANA — The continued rise of the in-house agency: 2023 edition (May 2, 2023) ↗ · Payments Dive — Klarna taps generative AI to cut marketing spend (May 2024) ↗

Use it

Quick check · 3 questions

  1. 1.According to the ANA (2023), what share of its members have an in-house agency?

  2. 2.Which work is AI most likely to make cheaper?

  3. 3.Which contract clause is new and important in the AI era?

0 of 3 answered

Sources

Last reviewed 2026-10-01.