The Ad Industry's Reckoning: AI, Offshoring and the Future of Agency Work
The advertising industry is in the middle of a seismic shift and the data shows just how sharp the drop has been. In the U.S. alone, the agency sector has now seen consecutive months of job losses, averaging over 1,275 cuts per month. Last February, that number jumped to 1,600 jobs lost—a steep and troubling figure [Ad Age, March 2024].
At first glance, it looks like a familiar downturn. But look closer, and it’s clear: this isn’t just a slowdown. It’s a silent restructure and one that’s reshaping the fundamentals of how agency work gets done.
What’s Really Happening?
The industry isn’t simply adjusting to a weak economy. It’s actively reinventing itself and it's being driven by two converging forces:
1. Artificial Intelligence (AI)
2. Offshoring at scale
These aren’t future-facing trends—they’re happening now.
The Rise of AI in Advertising
Agencies are embedding AI across every layer of the business: from production to media planning to creative ideation.
- Publicis is integrating its proprietary AI platform, Marcel, across its global workforce.
- Omnicom has secured enterprise-level ChatGPT access for employees through a Microsoft partnership.
- WPP CEO Mark Read has publicly declared that AI is “fundamental” to their business model [Bloomberg, Feb 2023].
And this isn’t just about automation. It’s about speed, cost savings, and scale. As repetitive tasks disappear, agencies are reallocating work to fewer, more strategic human roles often assisted by AI prompts, models, and outputs.
Offshoring: From Cost-Cutting to Core Strategy
Offshoring is no longer a quiet back-office move, it's actually being baked into the operational core of holding companies.
- Publicis has staffed over 25,000 engineers in India through Sapient, dedicated to AI integration, plus growing teams in Eastern Europe and Latin America.
- Omnicom is building full offshore campuses in India (Chennai, Gurgaon, and Hyderabad).
- Dentsu has offshored 20% of its workforce, which is over 10,000 jobs, via its delivery arm, Dentsu Global Services [Campaign US, Apr 2023].
- WPP’s Hogarth division is actively offshoring production work to mitigate salary inflation.
This is not just about labor arbitrage, it’s a strategic operating model. With 24/7 global delivery, clients get work faster, and shareholders get leaner cost structures. Emerging hubs in India and the Philippines are rapidly becoming the new centers of execution, and influence.
The Value Equation Has Shifted
In this new world, revenue growth no longer equals job growth [Zoe Scaman, April 2025].
The industry now values:
- Fewer people who can work faster, aided by machines
- Geographically distributed teams delivering around the clock
- Technical and creative hybrid talent that can flex across platforms
Roles that used to feel “safe”, from account management to mid-level creatives are increasingly being replaced or re-scoped.
From Madison Avenue to Mumbai
The old capitals of advertising—New York, London, San Francisco—are shifting. The new power hubs? Cities like Bangalore, Hyderabad, Manila, and Bucharest.
A Permanent Revolution
What we’re seeing isn’t temporary. It’s a foundational reset. As one executive put it: “If you’re not in the top 1% - 5% of talent, your position is already precarious.”
Even those at the top may only have a 5–10 year runway before AI or structural shifts encroach on their domains.
While leadership often strikes an optimistic tone, “AI won’t take your job, but you have to master it”, the truth is more sobering: the jobs themselves are changing, and fast.
[Quotes referenced from Zoe Scaman's post]
Where We’re Headed: My Predictions
1. Agency org charts will flatten
Middle management and legacy layers will be trimmed in favor of lean, hybrid teams.
2. AI-native agencies will dominate
Shops that embed AI across every function, from creative to ops, will gain market share fast.
3. Creative will evolve but won't vanish
Ideas will still matter, but they’ll be shaped through new inputs: prompt engineering, generative tools, and cross-disciplinary workflows.
4. Freelancing and independent models will surge
As agency roles disappear, experienced talent will turn to consulting, solo shops, or niche boutiques.
5. Global pay dynamics will rebalance
As offshore markets mature, we’ll see more competitive comp packages outside the West, and more stagnation within it.
6. Clients will be sharper, and less forgiving
Brands now expect automation, fast delivery, and data fluency. Agencies that can’t match that pace will be dropped.
Navigating the Shift: Options for Talent in Transition
If you're in the industry or recently out of it here are paths worth exploring:
1. Reskill with intention.
Learn prompt engineering, generative design tools, AI media buying, or automation scripting. Even basic fluency can give you a leg up.
2. Specialize in what AI can't replace (yet)
Strategic thinking, client counsel, brand storytelling, emotional intelligence, and cross-cultural nuance are still human strengths.
3. Explore independent or fractional work
Build a portfolio business across consulting, contract work, thought leadership, or adjacent sectors like product or media.
4. Look brand-side or go adjacent
In-house marketing teams are growing. So are content studios, startups, and tech firms looking for creative strategists.
5. Build your personal platform
If you're not visible, you're vulnerable. Share your POV, publish your work, and make your expertise discoverable.
Final Thoughts
This isn’t about fear. It’s about agency (no pun intended) —the kind you own over your own career.
There are incredibly talented people, people with stellar resumes and decades of experience who are struggling right now. The job market is tight, the rules have changed, and the silence around this massive shift is deafening.
But here’s the good news: the earlier you start navigating this shift, the more power you have to shape what’s next. Whether that means adapting, pivoting, or rebuilding, don’t wait for the system to catch you. It won’t.
Time is the most strategic resource we have right now. Use it well.
References:
1. Ad Age
Schultz, E. (2024, March 8). U.S. advertising employment continues to decline in February. Ad Age.
https://adage.com/article/media/us-advertising-employment-continues-decline-february/2549246
2. Campaign US
Weissbrot, A. (2023, April 23). AI and offshoring underpin permanent revolution in holding company strategies. Campaign US.
3. Bloomberg
Menezes, D. (2023, February 28). WPP CEO Mark Read says generative AI is fundamental to advertising. Bloomberg.
4. Scaman, Z. (2025, April 8). CSO at 77X, Founder & Speaker at Bodacious.