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75% of agencies are becoming obsolete – What now?

Let’s say it out loud: the agency model that defined the last two decades is well on its way to obsolescence.

Most agencies still hang their hat on one of these pillars:

  • Paid advertising
  • Website or app design and development
  • SEO
  • Design/creative
  • Social media strategy and campaigns

The problem? These pillars are quietly being eroded by AI and the cracks are widening.

In just a few years, AI will run the bulk of digital ad campaigns with higher efficiency and lower overhead. It already builds websites that look good enough for most small and medium-sized businesses (platforms like lovable.dev and base44.com). SEO tools are becoming smarter, and the LLMs (I prefer Custom GPTs and Projects in Claude) can churn out optimized blog posts faster than your content team can get a second coffee. Social media? AI is learning tone, cadence and even how to reply to comments with surprising nuance.

Here’s the harsh reality: AI will handle 70-90% of what traditional agencies are offering today. Which means that unless agencies evolve, 75% of their revenue base is on a ticking clock.

The Quiet Collapse

Agencies know it. You can feel the unease in meetings and Teams channels. Many, like Beyond Borders Marketing, will pivot to a new audience or service focus.

But many are hoping their brand equity, client relationships or creative edge will protect them. They won’t. Not for long.

Clients don’t care how the sausage is made. They care about results. And when AI tools promise similar or better outcomes at a fraction of the cost, even the most loyal clients start asking tough questions.

Reinvention Isn’t Optional

The real opportunity? Reinventing what it means to be a marketing partner.

Not a vendor. Not an outsourced production house. But a strategic growth partner with deep insight, creativity and adaptability; things AI can mimic but not master.

The future-ready agency will move away from execution-heavy services and focus on:

1. Strategic Coaching and Client Workshops

Clients want clarity. They want someone who understands their industry, sees around corners and can translate shifting trends into actionable strategies. Not just what to do, but why to do it. That’s human territory. And it’s where trust is built.

Examples: Tailor, develop and deliver a client messaging session to enhance campaign effectiveness; coach a client through the checkpoints needed to navigate entering a new vertical market.  

2. AI Training for Clients

Ironically, helping your clients use AI effectively could be your biggest growth area. Teach them how to prompt, automate, audit. Most companies have access to the tools but not the skill to wield them well.

Examples: Develop a customized Brand Roadmap or AI Brand Masterfile that clients can then use as a starting point for Custom GPTs to achieve core marketing tasks: email drafts, landing pages, message mapping, ideal customer profiles.

3. Content That Cuts Through

Yes, AI can write. But it can’t think. Real thought leadership, creative brand plays, and emotionally intelligent storytelling still require a human touch. This is where agencies can stop churning and start crafting.

Examples: Partner with a media outlet in your vertical market on an industry survey and release with the partner key findings in an exclusive webinar or gated report.

4. Sales Integration

Marketing can't stay in its lane anymore. Agencies that help align marketing with sales, through training, tools and messaging strategy, will offer ROI clients can actually feel. Agencies need to sit in on sales calls, not just send PDFs.

Examples: Lead client Marketing and Sales teams through an in-person workshop (large post-it notes and brainstorming) to walk through the entire customer acquisition process. Update or create from scratch a sales playbook with your findings.

5. Productized Tools

Instead of just services, agencies can build simple tools that live on their clients’ websites: calculators, ROI estimators, schedulers, checklists. These create value, reduce friction and build daily utility.

Examples: ROAS calculator, Lifetime Customer Value analyzer, U.S. Market Readiness evaluator.

Case Study: We’re currently rolling out a U.S. Readiness Calculator. This will be a quick, guided questionnaire that gives overseas CEOs a clear snapshot of where they stand. The calculator asks a series of focused questions around operational setup, regulatory alignment, brand positioning, sales readiness, and marketing infrastructure. Once completed, it delivers a customized PDF with a breakdown of strengths, gaps and next-step recommendations.

6. Full-Funnel Ecosystems

Gone are the days of a pretty landing page and a few Google ads. Agencies need to architect end-to-end experiences. That means thinking like product designers, not just marketers.

Examples: Map and execute a multi-channel launch strategy for a new U.S. product that includes gated content, retargeting sequences, automated email nurturing, and integration with CRM for real-time sales alerts.

7. Original Brand Plays

No AI can replace bold, culture-shifting creative ideas. From guerilla campaigns to unexpected partnerships, original brand expressions are how agencies reclaim their edge.

Examples: Conceptualize and launch a provocative LinkedIn content series, such as “U.S. Market Myths Debunked,” where senior leaders from your client’s company challenge outdated industry assumptions in short-form videos, designed to spark debate, shares, and engagement from U.S. prospects.

The Beyond Borders Perspective

At Beyond Borders Marketing, we saw this trend coming.

That’s why we don’t see ourselves as "just another agency."

We work as strategic guides for overseas-based B2B companies expanding into the U.S., helping them simplify complex services, clarify their positioning and build market credibility.

We help clients understand what AI can do, and what it can’t. And we focus on the parts that matter most: relevance, resonance and results in a highly competitive U.S. market.

What's Next?

The agencies that survive will be the ones that make peace with the fact that AI isn’t the enemy.

Complacency is.

It’s time to stop protecting outdated revenue streams and start building something new.

Agencies have always prided themselves on creativity. Now they need to prove it.

FAQs

What types of agency services are most at risk from AI?

Services with a high degree of repeatability and clear rules, like paid ad management, SEO optimization, and basic content creation, are already being absorbed by AI tools.

Will clients still want human involvement?

Yes, especially in strategic planning, creative direction and high-trust relationships. AI can execute, but it doesn’t lead.

Can agencies still thrive in the AI era?

Absolutely, but only if they evolve into strategic advisors and creators of differentiated value, not just executors of routine tasks.