AI and automation force ad agencies to rethink creativity or risk irrelevance

Advertising agencies face growing pressure from AI and automation, threatening their traditional business models. Eugene Cheong, a leading industry voice, has warned that bureaucracy and predictable work are putting creativity at risk. He argues that agencies must change to survive in an era where execution-heavy tasks are being taken over by machines. For decades, agencies relied on a simple structure: a small share of work won awards, some created cultural impact, and most revenue came from routine execution. But AI is now handling repetitive tasks faster and cheaper, making this model unstable. Cheong believes the real value of agencies will soon lie in original thinking, creative judgement, and strategic imagination—not in mass production.

Cheong challenged the idea that agencies must keep growing bigger, faster, and more optimised. Instead, he proposed a 'big little agency' model—large enough to deliver results but small enough to stay agile and hungry. He stressed that creativity thrives on behaviours like curiosity, playfulness, and courage, which bureaucracy often stifles. The biggest threat, he warned, is not AI itself but the industry’s tendency to flatten ideas and favour safe decisions. As AI competes with predictable work, average agencies will struggle first. Only those that protect bold, unconventional thinking will stand out.

The shift toward automation means agencies can no longer rely on execution for revenue. Cheong’s vision suggests a future where success depends on nurturing creativity and strategic depth. Without change, many may find themselves outpaced by both technology and more adaptable competitors.