If you have been to an advertising and marketing conference in the past twelve months, there is no doubt you will have sat through a discussion about AI. Whether it's AI's impact on creativity, fears that technology is taking our jobs or considering how AI can be leveraged to maximise efficiency, no matter the angle, AI is the number one topic on everybody's lips. 

IAB research shows that 85% of companies already use AI-based tools for marketing, with nearly three-quarters confirming that at least one campaign function is AI-powered. Widespread across the industry, agencies are offering clients new AI-powered tools and striving to set themselves apart by appearing at the forefront of innovation.

Last year, the Advertising Association launched its AI task force to ensure that AI adoption could be responsible and ethical. There remain concerns around how AI can reinforce stereotypes and gender biases and breach copyright, stripping creators of their right to their own creative ideas.

The technology is here to stay, and amid an adapt or die mentality, agencies are feeling the pressure to embrace AI in whatever way they can. While AI can be an asset when it comes to production, process and cutting costs, we ask the industry: Are marketing leaders right to be concerned over agencies' AI ‘land grab’?

Yes - marketing leaders are right to be alert to an agency AI ‘land grab’,  but they shouldn’t see it solely as a threat.

From one standpoint, agencies are racing to own as much of the AI stack as they can - from infrastructure (data, workflow, toolsets) to creative generation. That shift raises real risks: a loss of creative oversight, challenges to brand integrity, and the danger of creativity being reduced to a commodity rather than a true differentiator.

At the same time, AI could empower brands to bypass agencies altogether, eroding the agency’s traditional role in creative and media execution.

The talent implications are just as concerning. As automation scales, junior and mid-level roles may shrink or morph into AI-supervisor functions. The human premium may shift higher up the ladder, making it harder to attract and retain top creative thinkers.

But there’s a flip side. Done well, an agency’s AI push can be a real advantage for marketing leaders. Agencies that harness AI well can drive scale, efficiency, faster iteration and richer insights - lowering costs while unlocking agility. Hybrid models combining generative AI with human oversight increases both productivity and expertise.

So yes, marketing leaders are right to be cautious - but I think the better question is how to redefine our partnerships. A clear focus on accountability, transparency and talent will ensure AI strengthens, rather than sidelines, brand leadership.

The idea of an AI ‘land grab’ is a distraction. The best agencies aren’t fighting for ownership; they’re focused on outcomes. AI should enable better decision making, not deepen silos. Brands are making that expectation clear. The latest WFA report shows that more than half of global companies now use outcome-based fees, and nearly three quarters want agency compensation tied more closely to business performance.

It’s a signal that both sides want to move away from traditional resource-based models toward partnerships built on measurable value. As agencies look to guarantee results that go beyond media metrics like CPMs or CPCs to actual business growth, they’ll need partners who can help them deliver those outcomes with confidence. That’s where the real opportunity lies - in using AI to enhance collaboration, transparency, and impact.

Marketing leaders are right to be concerned - but not for the reasons they might think.

The real risk isn't that agencies are adopting AI; it's that many are doing so without strategic clarity. Too often, we're seeing agencies bolt on AI tools as a selling point rather than fundamentally rethinking how they create value. This creates legitimate concerns around IP ownership, data privacy, and whether cost savings from AI-driven efficiency will be passed to clients or simply boost agency margins.

However, the talent question cuts both ways. While AI may commoditise certain production tasks, it's simultaneously raising the bar for strategic thinking. The agencies investing in AI literacy across their teams - teaching strategists to prompt effectively, helping creatives use AI as a multiplier rather than a replacement - are delivering better outcomes faster.

The CMOs winning in this transition aren't resisting agency AI adoption; they're demanding transparency about it. They're asking: Which AI tools are you using? How does this affect my data? Where is human judgment non-negotiable? And crucially: How will efficiency gains translate to better work or lower costs

The 'land grab' concern is valid, but the solution isn't resistance - it's ensuring your agency partnerships evolve with clear governance, shared value creation, and human creativity firmly at the centre.

Agencies are sprinting to “embrace AI” — but for in-house marketing leaders, that should raise suspicion, not hype.

Anyone can slap a tool onto a process and call it innovation. The real test is judgment — knowing when AI lifts the work, and when it just commoditises it.

If you’re a marketing leader choosing agency partners right now, look for the ones building around AI, not chasing it. The ones using it to solve real business problems, not to show off shiny demos.

AI’s impact on marketing leadership can be positive — but only for those who stay selective. Leaders who insist on filters, benchmarks, and push resistance to mediocrity are the ones who’ll come out ahead."

Marketing leaders should be concerned, especially by agencies overclaiming their AI capability. This is more prevalent than one might think, so do your due diligence and differentiate between genuine capability and shiny press releases.

My advice: don't just ask 'do you use AI?'; ask 'how?', 'at what scale?' and critically, 'what measurable improvements in performance, speed, and cost?' A scaled AI agency offers this transparency. Ask for a login to their platform. If you can go in and play, it's genuine. If not, ask why. And ask to speak to an existing client for whom they're executing AI at scale. Demand proof, not promises.

Also be wary of agencies boasting 'amazing proprietary AI tools'. These are nearly always for their own staff. For clients to benefit from the power of AI, the technology needs to be democratized and usable by all partners in their marketing ecosystem.

At Oliver, our view is AI's value is only real if it delivers real-world impact. Over a three-month period, we made 235,000 pieces of GenAI content for three global advertisers. We made these assets 62% faster, 55% cheaper and they outperformed control by 40%.

Marketing leaders should demand this level of proven, scaled AI integration from their partners. Those who don't will simply be paying more for less effective work.