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The rise of generative artificial intelligence (AI) is expected to lead to significant changes in the advertising industry, with Forrester Research forecasting that advertising agencies will replace 7.5% of jobs with automation by 2030. According to the report, about one-third of agency jobs will be at risk of replacement by 2030.
Threatened Roles in Advertising Agencies
The report highlights that clerical, secretarial, and administrative roles will be the most threatened by generative AI, representing 28% of job losses. Sales and similar roles account for 22% of the expected losses, while market research and related fields stand at 18%.
However, the report also identifies a negative correlation between jobs heavily influenced by generative AI, such as editors, writers, and programmers, and their potential to be automated. These positions, which are typically higher-paid and require higher levels of education, are expected to see increased productivity instead of job losses. This could result in the emergence of smaller, yet more capable agencies.
The Impact of Generative AI on the Advertising Industry
Generative AI has gained significant traction in the advertising industry in 2023, sparking both fear and excitement among industry professionals. The rapid development of software like OpenAI’s ChatGPT and DALL-E, which can quickly produce lifelike copy and visuals based on user prompts, has made generative AI commonplace. As a result, advertisers have been quick to experiment with the technology, with about 56% of business-to-consumer marketers already applying generative AI, according to Forrester data. Another 40% are in the exploratory phase.
Coca-Cola, for example, recently ran a campaign that allowed consumers and artists to create new ads based on its library of branded assets using OpenAI’s tools. Agencies are also embracing generative AI, with industry giants like WPP and chipmaker Nvidia partnering to develop a content engine built on the software. Other ad-holding groups are exploring different applications of generative AI as well.
The Future of Creative Jobs in Advertising Agencies
While there has been speculation about which jobs in the advertising industry will be most affected by automation, Forrester’s findings suggest that creative jobs, including writers and editors, might be among the least at risk. Although these roles will be highly influenced by generative AI, the technology could actually enhance their productivity, resulting in smaller agencies but not explicit job losses.
On the other hand, clerical, sales, finance, administrative, and labor-intensive roles are expected to have a smaller share of agency work in the coming years. Forrester does not anticipate that annual agency headcount growth between now and 2030 will exceed pre-pandemic levels.
The Impact of Generative AI on Agency Jobs
Forrester predicts that the impact of generative AI on agency jobs over the next two years will remain modest as ethical and legal issues surrounding the technology, including those related to intellectual property and bias, are resolved. However, marketers may need to start integrating AI into their practices and building their expertise to avoid falling behind.
Conclusion
The rise of generative AI in the advertising industry brings both opportunities and challenges. While some jobs may be replaced by automation, creative roles are expected to see increased productivity rather than job losses. However, clerical, sales, finance, administrative, and labor-intensive roles may face a smaller share of agency work in the future. Marketers will need to adapt to the changes brought about by generative AI to stay competitive in the evolving landscape of AI advertising agencies.
