How the AI era will accelerate agencies from services to solutions

By our News Team | 2023

The next wave of growth hinges on agencies’ ability to shift their economic model to capture the full potential of artificial intelligence.

After meteoric post-pandemic performance, agencies’ earnings have returned to pre-pandemic single-digit levels. At the same time, AI investments skyrocketed to US$92-billion during 2022 and $50-$60-billion year-to-date in 2023.


This is according to research company Forrester, which says the next wave of growth hinges on agencies’ ability to shift their economic model in order to capture the full potential of artificial intelligence within their processes, capabilities and structure.

Artificial Intelligence

Photo by Kampus Production from Pexels

In a blog post on the company’s website, Jay Pattisall, Vice President and Principal Analyst at Forrester, says that, in 2024, agencies face recasting their services-based model into a solutions-based one comprised of creativity and technology products. 


All agency types – creative, media, PR, digital, and in-house – will feel the impact of pairing people with technology. As a result, Forrester predicts that, in 2024:


Bespoke brand algorithms will power agency offerings 


In the future, brands will buy the algorithms that their agencies build by training AI-powered marketing engines with multiple first- and third-party audience signals, historical media performance, and creative content – personalised for each client. 


Forrester calls these bespoke brand algorithms ‘brand language models’. They are brand-specific applications of AI technology that use base models like Meta’s Llama or OpenAI’s GPT that leverage insights from audience signals and layer in a company’s branding, fonts, colours, tone of voice, and IP. 


Brand language models are the engines that create brand-specific, personalised marketing based upon human creative ideas combined with machine precision and speed.


Agency reviews will increase as fear of AI mismanagement grows


Agencies and marketers will be left to self-govern AI marketing practices until the US and EU enact AI legislation, expected by 2026. 


This will make business leaders nervous. Sixty-one percent of AI decision-makers are concerned about privacy and data protection that might violate laws such as the GDPR, while 57% are concerned about the misuse of genAI’s outputs leading to errors. 


As a result, 2024 will see more accounts up for review as marketers look for safe AI implementation to control the reputational fallout from mismanaged AI marketing executions.


Digital agencies will disappear from the industry landscape


As generative AI shapes more conversational and personalised experiences, this will effectively recast all marketing as ‘digital marketing’. This means that there will be little need for specialised ‘digital’ agencies. This leaves pure-play digital agencies with the reality of digital sameness and commoditisation. 


You can read the full blog post here.

Dr Kin Kariisa

Group CEO - Next Media

Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

  • Other current and previous roles played by Dr Kin Kariisa:
  • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
  • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
  • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
  • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
  • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.