Why Choosing the Right Digital Agency Matters More Than Ever in the AI Era

Lately, everyone seems to have the same question on repeat: “Will AI replace agencies?”

It’s a catchy headline, sure. Sam Altman drops the “95% of work replaced by AI” line, and the industry is bracing for extinction. Even Zuckerberg’s comments on automation were taken out of context, until Meta’s own CMO & VP Alex Schultz stepped in to clarify:

👉 “Agencies are not being replaced by AI. Creative is the new targeting.”

So, if you’re a brand trying to decide whether you still need a digital agency, or an agency trying to prove you’re still relevant here’s the truth: AI is changing the game, but it’s not changing the fact that creativity, authenticity, and strategy are irreplaceable.

Do You Still Need a Digital Agency When AI Can Run Ads?

AI can already optimize campaigns, shift budgets, and spit out reports faster than you can finish your coffee. Tools like Google Performance Max or Meta Advantage+ are great.

But let’s be real: data without the right questions is just noise.

What AI can’t do is sit down and ask:

• What story are we actually telling?
• How do we make people feel something?
• Where should we show up so customers feel seen, not stalked?

A digital agency doesn’t exist to push buttons. It exists to make sense of complexity, connect dots, and turn raw output into results that actually matter.

Authenticity > Automation

I’ve said it before and I’ll say it again: authenticity is non-negotiable.

👉 Consumers don’t buy funnels. They buy feelings.

👉 People don’t want a brand that acts like a bot. They want a brand that sees them.

👉 AI can generate a thousand variations of an ad, but if none of them feel human, what’s the point?

No one can do everything and that’s the whole reason agencies exist. Specialists bring depth in design, media, performance, and storytelling. AI can help, but without a human creative lens, it’s just content on autopilot.

And here’s where it gets real: brands don’t grow on AI alone. They grow on strategy.

• Duolingo scaled from an obscure app to a $10B+ brand through fearless, witty social media.
• Red Bull spends ~$300M annually on content — and drives $10B+ in revenue.
• Crumbl turned from a hostel-side cookie idea into a multi-branch empire through iconic, meme-driven content.

That’s not automation. That’s strategy-led creativity.

What Agencies Need to Do (and Why That Matters for Brands)

Let’s be honest: this isn’t the time for agencies to panic. It’s the time to evolve.

Embrace AI as infrastructure. Reporting, optimization, predictive modeling — let AI take it.

Double down on strategy + creativity. That’s where the real value is. Agencies that thrive are the ones asking better questions, building smarter strategies, and creating ideas that resonate.

Partner, don’t compete, with in-house teams. Many brands are moving CRM and digital execution in-house. Digital Agencies that position as collaborators (not rivals) will win.

Stay pitch-ready. The AAR in UK report showed pitches down 28% in the first half of 2025 but with three times more pending for H2. Translation: the opportunities are coming. Agencies who sharpen their positioning now will be ready when the wave hits.

For brands, this means you shouldn’t just hire a digital agency to “run ads.”. You need one that acts like an advisor. Someone who protects your brand from getting lost in data while keeping the creativity sharp.

The Strategic Core

Here’s the part most businesses forget, without strategy, investing in digital is pointless.

You can spend big on dashboards, data, or AI tools, but unless everything is tied together — your ads, your content, your UX, your CRM, your media, your design — you’re just spinning wheels.

The role of a digital agency is to align all touchpoints around a cohesive plan that puts human connection first.

The Future Is Human + AI

Let’s stop pretending agencies are on their way out. They’re not. In fact, AI makes them more necessary.

Because brands don’t just need efficiency. They need partners who know how to cut through the noise, inject creativity, and drive results with authenticity.

As Alex Schultz put it, agencies are trusted advisors. They’ve always been the bridge between tech, creativity, and human connection, and that bridge is only becoming more valuable.

So if you’re searching for a digital agency, don’t fall for the “AI will do it all” myth. Ask yourself:

• Who can keep my brand human in a digital-first world?
• Who can merge creativity with performance in a way AI can’t?
• Who can shape a strategy that keeps driving growth even when the rules shift?

That’s the digital agency you want next to you.