With the right AI-ready agency in place, it’s time to jettison the dated services paradigms that stand in the way of extracting value. Ditch the pitch process in favor of shorter paid projects to identify partners. The conventional agency selection and management process is costly and time-consuming. Joint research from the American Association of Advertising Agencies and Association of National Advertisers shows brands spend more than $400,000 per agency pitch, lasting several months.

Forrester’s 2023 advertising agency forecast projected that 7.5% of advertising agency jobs (roughly 33,000 roles) will be automated by 2030 — a prelude to how machine learning, automation, and agentic AI will reshape marketing departments.

Most troubling, agencies perceive that in the next 24 months they will pass on genAI costs to clients: 31% without a markup and 37% with a markup. AI Is A Cost Center Inside Agencies, Not A Revenue Driver We surveyed 132 US-based advertising executives in 2025 and 117 US-based advertising executives in 2024 about their current renumeration models for genAI capabilities within their agencies for 2024, 2025, and 2027.

Supplemental Material Survey Methodology Forrester fielded the Forrester And 4As AI Survey, 2026 in April 2026 in collaboration with the American Association of Advertising Agencies (4As). Respondents were decision-makers with seniority of vice president or above at US agencies.

American Association of Advertising Agencies (4As) Association of National Advertisers Bridgestone Americas Crossmedia Darren “Daz” McColl Future Today Hancock Whitney Bank Horizon Media Interactive Advertising Bureau Joanne Davis Consulting Mediaocean Mercer Island Group NP Digital OpenX Publicis Groupe Tinuiti The Trade Desk Viant Technology WPP Media Wpromote Zelis Healthcare

Supplemental Material Research Methodologies Forrester fielded the Forrester/4A’s Agency Generative AI Survey, 2025, in April in collaboration with the American Association of Advertising Agencies (4A’s), with additional support from the Society of Digital Agencies (SoDA). Respondents were decision-makers with seniority of vice president or above at US agencies.

Charlotte Scorer, head of media strategy at advertising agency DEPT, emphasized working with a range of creators with different specialties to “hit multiple goals without having to fit a square peg into a round hole.” Support additional business objectives with creator activations. Marketers starting with a modest budget should begin with one or two specific business objectives, such as increasing awareness or share of voice around a new product.

Supplemental Material Survey Methodology Forrester fielded the Forrester/4A’s Agency Generative AI Survey, 2025, in April in collaboration with the American Association of Advertising Agencies (4A’s), with additional support from the Society of Digital Agencies (SoDA). Respondents were decision-makers with seniority of vice president or above at US agencies.

Finally, PLM platforms coordinate the extended enterprise, from suppliers of raw materials to advertising agencies responsible for new products or product-as-a-service launches. Business Value Asset-intensive manufacturers in industries like aerospace and automotive value PLM solutions for their ability to aid collaboration with customers and suppliers on engineered components, promote the reuse of designs and components, and prolong the useful value of long-lifecycle assets or products.

Forrester recommends marketing, CX, and agency executives maximize the magic of AI technology with clear commercial usage and indemnification commitments. Supplemental Material Survey Methodology Forrester fielded the Forrester & 4A’s 2025 Agency Generative AI Survey in April in collaboration with the American Association of Advertising Agencies (4A’s), with additional support from the Society of Digital Agencies (SoDA).