Frenemy at the gates: Industry battles with future of AI

The marketing and advertising industry is facing a classic dilemma over the adoption of artificial intelligence tools, with most professionals now coming to the realisation that the technology is a classic “frenemy”: on the one hand, professionals cannot survive without it; on the other, it threatens their very existence.

This week has highlighted just how the technology is vexing the minds of industry professionals – in both client companies and agencies.

Firstly, new research from SalesManago has exposed how the technology is proving a double-edged sword for brand marketers.

The report, which reinforces previous studies that show marketers are being asked to achieve more with less, goes on to reveal that a significant 73% feel stretched due to increased 2025 targets and shrinking budgets.

Most maintain that AI is no longer optional, with 71% of professionals reporting that they now could not hit their goals without the automation and intelligence delivered by the technology.

However, the rise of AI is also creating new challenges, with 55% admitting their tech stack has become more complex and difficult to manage, while even more worrying, 92% of UK marketers are now under pressure to slash their teams.

While fears over job cuts have been flagged up for a while, UK chief executives have long believed this to be scaremongering.

According to KPMG’s 10th annual CEO Outlook survey, the majority of UK bosses (71%) insist AI will not fundamentally impact the number of jobs in the market, instead existing jobs could be redeployed, and the new tech is expected to enable upskilling. A further third said it will create more jobs. This belief is replicated across the broader population of CEOs around the globe.

SalesManago chief executive Brian Plackis-Cheng said: “AI is now an essential tool for success, with the majority of marketers embracing it as their new sidekick, but it’s also reshaping the industry as a whole, driving both opportunity and new challenges.

“While automation enables efficiency, marketers are also facing increasing complexity and rising expectations from within their organisations.

“We believe that AI should empower, not overwhelm, and our mission is to ensure that marketers can harness its full potential without adding unnecessary complexity.”

Meanwhile, the growing influence of the technology has also been identified by new IPA president Karen Martin as one of the four core areas of focus for her two-year tenure, arguing that agencies need to tread carefully.

Earlier this week, Martin called for a renewed focus on celebrating human creativity, urging agencies in particular to balance the potential of AI with the irreplaceable value of human-driven creative thinking.

She said: “AI has the incredible potential to augment, to scale and to personalise. But we should always ask the question: Should we be using it to create where a human hand could have done the same?”

In an interview posted on the IPA website, Martin expanded on her view. She explained: “I think you have to make AI a friend, but also realise it could be an enemy. It helps and enhances lots of things, but it is not going to decide how to make the best creative product.

“We’d be fools if we don’t embrace it and understand its role, but there is also the importance of human creativity.

“If we all have access to the same tools, which by and large we do, it is going to require different thinking to bring something to the surface. We need to remember AI is only as good as its use and human creativity has to be the thing that shines above all that.”

Even so, AI spend is expected to reach $644 billion (£500bn) this year, up from $400bn (£310bn) in 2024, according to a new forecast from Gartner. While many still question exactly how effective the technology is, Gartner predicts AI budgets will see a major surge across all core markets, including software, devices, and services.