AI is shaking up marketing, creative, and media agencies – from production and creative processes, to streamlining workflows and bolstering efficiency. With this revolutionary tech having the power to significantly reduce the amount of time spent on one campaign – are retainers and hourly rates a thing of the past? FutureWeek spoke to agency leaders to find out how AI changing the way they bill clients.
Amina Folarin, CEO, UK Group, OLIVER
“AI is transforming everything, and at huge pace. It’s one of the most energising factors of 2025, occupying most of my client conversations due to the way in which it delivers speed and scale, resulting in faster, better marketing. In terms of billing models, I would say it doesn’t necessarily change that much for us, as technology has always been an integral part of our relationships with clients. But what it does mean is that the proportion of our billings that are attributed to technology is increasing. Interestingly, we’re also seeing that our people are in even higher demand now because we have shifted the skillsets of our workforce to be ready for GenAI.”
Luke Budka, AI Director, Definition
“AI is certainly changing the landscape of creative work, but we see this as an opportunity rather than a threat. The concept of Jevons paradox applies here: whilst AI increases efficiency, it also opens up new avenues for work. We’re now able to take on more projects and work with client teams that previously mightn’t have had the budget for our services. This actually expands our billable hours rather than reducing them.
“The main challenge is the misconception that AI can replace human expertise. In reality, the efficiency gains from AI are only possible because of the decades of experience our team brings to the table. A seasoned director using AI tools can create a brand film in half a day instead of a month, but that’s due to their 20 years of filmmaking experience, not just the AI. It’s like the plumber who charges £100 to hit a boiler with a hammer – £10 for the hit, £90 for knowing where to hit.
“We’ve adapted our pricing model in relevant areas of our business to offer both human-only and human/AI blended services, giving clients flexibility. More importantly, we’ve recognised that clients now want access to the best AI models, so we’ve built a platform showcasing top-tier AI models curated by our creative experts. This has opened up new revenue streams in model consultancy and AI training for client teams.
“As the AI landscape evolves, our expert curation becomes even more valuable. Our skills in model fine-tuning and prompting are crucial for brands wanting to maintain a unique voice. We’re not just using AI; we’re customising it to ensure each brand stands out in an AI-enhanced world.”
Rachel Irvine, CEO, Irvine Partners
“Since founding Irvine Partners we have never operated a billable hours model, preferring to focus on outputs and value add for clients rather than hours spent. This means we get the job done, no matter the hours or expertise required. Our value as an agency comes from the fact that we do our own stunt work; executing projects, from ideation to planning and rollout.
“The increased speed and efficiency offered by AI is compelling agencies globally to re-evaluate their billing models. This shift is likely to prioritise value-driven outcomes rather than just looking at hours spent. However, the creative industry has a responsibility to uphold high standards and originality especially as AI-generated content proliferates and risks diluting the quality of creative work overall.
“So good riddance to timesheets and outdated billing models which are no longer fit for purpose for creative industries. I, for one, will be glad to see the back of unnecessary admin.”
Richard Stone, MD, Stone Junction
“We’ve always believed that billing for time was the wrong approach — charging for the value delivered is how we’ve ensured our clients get a fair deal. AI is accelerating this shift by automating many of the time-consuming tasks like data analysis, that agencies once billed for. This challenges the traditional model, where hours worked equate to revenue, and instead forces agencies to prove the strategic value they bring beyond execution.
“The biggest challenge is perception. Clients might assume that because AI speeds up tasks, agency fees should decrease. But real value comes from the expertise in using AI effectively, interpreting insights and crafting strategies AI alone can’t replicate. AI can generate content, but it can’t create original thought leadership, understand client nuances or build relationships — all of which remain central to agency success.
“Agencies need to rethink pricing structures, moving towards project-based or value-based pricing rather than hourly billing. This means demonstrating measurable business outcomes rather than just deliverables. We see AI as an opportunity, not a threat. By embracing it and focusing on the strategic, human-led elements of our work, agencies can not only justify their fees but also enhance the value they provide. Those who fail to adapt risk being left behind in an industry that is evolving faster than ever.”
Chris Camacho, CEO, Cheil UK
“I believe that the efficiency gains offered by AI compel us to rethink how we measure and charge for our work. When an AI tool can generate a first draft of an ad or even assist in crafting an entire campaign, the number of billable hours decreases. Yet the strategic creative input that remains essential is more valuable than ever. This shift is prompting many agencies to explore value-based pricing models where fees are tied directly to campaign performance and outcomes rather than the sheer volume of time spent.
“There are, of course, challenges with this transformation. One significant issue is pricing transparency. With AI reducing the time spent on deliverables, establishing a fair price that accurately reflects both the cost savings and the enduring value of human creativity is complex.
“Moreover, determining the monetary worth of AI-enabled innovation demands a re-calibration of our traditional metrics. Operationally, the cultural shift is just as challenging as the financial one. Agencies must navigate internal resistance and redefine roles as they integrate AI tools into their workflows. We are not merely cutting costs here; we are reinventing the creative process to deliver strategic impact. It is clear that in this brave new era, the mantra remains bold, brave and first.
“Looking to the future, I predict that the creative landscape will be transformed by AI to such an extent that the traditional billing model will become obsolete. Agencies will be judged not by the hours logged but by the value they create. As we continue to harness AI to streamline processes, the true challenge lies in redefining our value proposition so that every campaign not only saves time but also delivers the level of creative brilliance.”
Katherine Cartwright, Cofounder and Principal, Criterion Global
“At Criterion Global, we’re fortunate that we have never worked on a (full-time equivalent) FTE basis which is a product of our niche nature – a focus on niche, challenging campaign types like international expansions, media investment restructuring, “stabile market” optimisation and growth planning for IPO/sale – as well as overhead. We’re small and specialised, by design.
“While AI is great, and essential to every aspect of agency work really, it’s likely to hurt large agencies the most I fear. Large agencies have historically thrown “more bodies” at projects to drive greater billable FTEs, and AI is cutting harmfully into their ability to do so. Client procurement is likely to challenge every aspect of statements of work that require human labour to challenge where the value really comes in.
“Longterm, I have no question our profitability and course is the right one, because our niche expertise helps insulate us from the encroachment of AI. But this model of working isn’t without it’s drawbacks:
“Late last month, a leading agency procurement consultant reached out, asking about our headcount and media under management. The issue? We don’t bill by FTEs or a percentage of spend. While we influence $50M+ in media, our value lies in deliverables and results—not overhead.
“And while we have 3 global offices in New York, Singapore and Miami and a strong ‘permalance’ network, we run lean, making us twice as profitable as holdcos and 50% more than independents. And with AI, the productivity and profitability of firms like mine is all the more divorced from overhead.
“Point is: agencies overwhelmingly operate in hybrid models, making financial management and staffing chaotic. With AI and economic shifts ahead, I predict we’ll see dramatically less agency hiring. But I do feel confident we’re well-built for the changes to come.”
