One More Nail In The Coffin Of Ad Agencies

By John Winsor

In a major shift for the creative industry, Microsoft recently launched an ad for its Surface line that was almost entirely created by artificial intelligence. Using tools like Hailuo and Kling, the design team generated every scene except for a few human close-ups, such as hands typing. The ad ran for three months without anyone noticing it was AI-made, proving Shelley Palmer’s insight: “If you cannot tell the difference, there effectively is no difference.”

This milestone highlights a critical transformation in how brands create content. As Palmer smartly frames it, creative work now falls into two categories: “required” content, practical, executional work increasingly handled by AI, and “inspired” content deeply human storytelling still beyond AI’s full reach. Microsoft’s Surface ad achieved a 90% reduction in time and cost while maintaining broadcast-quality standards. For brands and agencies alike, this signals an urgent need to rethink how creativity is produced, valued, and rewarded.

When I led strategy at Crispin Porter + Bogusky, one of the most decorated creative agencies in history, we focused intensely on unpredictable human creativity. Later, at Victors & Spoils, we pioneered open talent models, demonstrating that creativity could survive and thrive in new structures. In my book Open Talent, I argue that embracing open networks and AI-driven collaboration doesn’t diminish creativity; it liberates it, amplifying human potential by automating required content.

The implications are clear: AI can now efficiently handle the “required” creative work, freeing human teams to focus on the “inspired” work that moves hearts and builds brands. However, the economic efficiencies AI brings are already compelling brands to recalibrate their balance between human creativity and machine-driven execution.

Brands now have the opportunity to fundamentally rethink their creative strategies. First, it’s no longer necessary or financially wise to pay for agency overhead. Freelancers, empowered by AI tools and connected through emerging platforms like Hence Creative, can deliver exceptional results with greater agility and at a fraction of the cost. The bloated agency model is giving way to streamlined, open networks that prioritize speed, innovation, and return on creative investment.

Second, companies must recognize the opportunity to automate and streamline their required content. AI can rapidly generate high-quality, functional creative assets, enabling brands to reduce costs and reallocate resources toward more strategic and emotionally resonant initiatives. This shift is not about replacing creativity; it’s about reclaiming the time and space for deeper innovation.

At the same time, AI’s ability to handle routine creative tasks allows human teams to focus on what matters most: inspired storytelling. Freed from production-heavy demands, creative professionals can push boundaries, explore cultural narratives, and forge the emotional connections that truly engage audiences. In this new era, the brands that thrive will be the ones that understand creativity as more than content; they’ll see it as a profound emotional dialogue with consumers.

Finally, brands must adopt an open talent mindset. AI reaches its greatest potential when paired with diverse human insights. By tapping into a global pool of freelance and independent talent, brands can access broader perspectives, richer ideas, and faster innovation. AI isn’t a competitor in this model; it’s a collaborator, amplifying the capabilities of a dynamic, distributed creative workforce.

Ultimately, the adoption of AI-generated content might spell the end of traditional ad agencies that cling to outdated structures. Those unwilling to evolve will find themselves struggling to survive. But those who embrace AI as a tool for enhancing human creativity, blending technology with diverse, open networks of talent, will lead the next wave of storytelling innovation.

The future of creativity won’t be built behind the walls of traditional agencies. It will emerge from open ecosystems, where humans and machines collaborate, liberated from legacy systems, and ready to meet a new era of brand building.

Feature Image Credit: Brands&People