Generative AI has transitioned from theory to practical application in 2024, as revealed by Forrester in their recent report titled “The State of Generative AI Inside U.S. Agencies 2024.” Over three-quarters of survey respondents identified generative AI as a disruptive force within their agencies, with 29% foreseeing it as a transformative influence on their business.
Currently, the greatest impact of this disruption is observed in creative agencies, where 69% of respondents reported active use of this innovative technology. Meanwhile, 57% of respondents from media agencies indicated that their agencies have begun implementing generative AI, with expectations of further adoption as teams explore new opportunities for leveraging its speed, insights, and innovation.
The report, based on a joint survey with the American Association of Advertising Agencies (4A’s), targeted decision-makers holding titles of vice president or higher within U.S. agencies. Respondents highlighted four key areas where generative AI is expected to significantly impact agency operations: content creation processes (76%), the agency marketplace (71%), consumer interaction with agency work (69%), and the content produced for clients (62%).
Enhancing productivity is a primary goal for agencies using (54%) and exploring (46%) generative AI, particularly in accelerating creative ideation and production. Notably, 74% of agencies employing this technology prioritize its role in aiding creative brainstorming, and nearly half (49%) emphasize its importance in generating assets for dynamic creative optimization.
Agencies are also leveraging generative AI to streamline audience insights and media reporting, with 59% using the tool for organizing consumer data into actionable insights, and 49% employing it for summarizing marketing performance results. Additionally, it supports internal workflows by creating consumer profiles, analyzing competitors, and transcribing presentations and calls.
Despite widespread adoption, significant barriers persist. Legal concerns, including issues of IP ownership, attribution, copyright, and liability delineation, are cited as major challenges by 94% of those exploring and 83% of those already using generative AI. Other barriers include data privacy, security, governance, risk management, reliability, accuracy, and addressing biases in AI outputs. Employee resistance, driven by concerns about AI expertise and emotional safety within the agency, also poses a substantial hurdle.
According to the report, overcoming these barriers is crucial to maximizing the value of AI investments and ensuring successful business model transformations within agencies.
