Agencies Must Adapt Service Offerings With AI For 2026 Survival
TL;DR
- Agencies must adapt service offerings beyond traditional PR and social media to focus on upskilling and AI implementation for clients to remain competitive and sustainable.
- Continuing current agency paths without course correction is ill-advised; most agencies require strategic adjustments to navigate economic shifts and evolving client needs.
- Refining the ideal client profile is crucial for 2026 planning, requiring agencies to understand how economic and AI impacts shape their target audience's needs.
- AI can enhance strategic planning by identifying overlooked questions and data gaps, guiding conversations rather than providing definitive answers.
- Agencies should leverage AI for greater consistency and accuracy in data analysis, improving output quality beyond human capabilities and reducing labor hours.
- Relying on recent data from 2025, not historical trends, is essential for identifying what is currently working and making informed strategic decisions.
- Embracing calculated risks and adapting services based on current market dynamics is necessary for agency survival and growth in the evolving landscape.
Deep Dive
Agency leaders must course-correct for 2026, as simply continuing current strategies will not suffice in a rapidly evolving landscape. Embracing innovation, particularly through the strategic integration of AI, is crucial for differentiation, efficiency, and long-term sustainability. This necessitates a critical re-evaluation of ideal client profiles and a willingness to take calculated risks informed by current data, rather than relying on past successes or outdated assumptions.
The current agency environment is characterized by a general malaise, distinct from past recessions or the pandemic, where many firms are struggling not catastrophically, but with a pervasive lack of momentum. This situation demands more than economic recovery; it requires agencies to fundamentally reassess their value proposition and adapt their service offerings. AI is a key driver of this adaptation, not as a replacement for human work, but as a tool to enhance productivity, enable new strategic thinking, and improve service quality. Agencies that can help clients with upskilling or implementing AI in marketing and communications will be better positioned than those offering traditional services.
The limitations of current AI, such as the need for specific prompting and the absence of true adaptability, underscore the continued necessity of human judgment, critical thinking, and editing. However, AI can significantly augment the planning process by identifying overlooked questions, data gaps, and alternative analytical approaches, thereby guiding more robust strategic conversations. This is particularly relevant for refining ideal client profiles, understanding how economic and technological shifts impact client needs, and identifying services that deliver tangible results. Agencies must leverage recent performance data to identify what is working now and lean into those strategies, rather than clinging to outdated models. This requires a commitment to calculated risk-taking, challenging assumptions, and adapting services to meet emerging client demands, such as those driven by AI's impact on professional development and operational efficiency.
Action Items
- Refine ideal client profile: Analyze 2025 client data to identify 3-5 key characteristics of most profitable and sustainable clients.
- Develop AI-enhanced service offerings: Identify 2-3 core services where AI can improve efficiency or strategic output for clients.
- Audit current agency processes: Use AI to identify 3-5 areas where current workflows can be optimized for efficiency or improved outcomes.
- Create a risk assessment framework: Define criteria for evaluating 3-5 potential strategic risks and their mitigation plans for 2026.
- Measure client success metrics: Track 5-10 key performance indicators for client engagements to identify trends and areas for improvement.
Key Quotes
"I do think more than ever, continuing forward on the path that you're on for the vast majority of agencies is not a good idea. I think most agencies require at least some modest course correction and some more than that."
Chip Griffin argues that simply continuing with existing strategies is insufficient for most agencies. He suggests that a significant number of agencies need to adjust their direction, implying that the current landscape demands adaptation rather than adherence to past practices.
"Really think about how you can set yourself apart and get in front of prospects now and in January so that you can be doing the things that will help you scale and grow and be sustainable for the future. And some of it's not gonna be fun."
Gini Dietrich emphasizes proactive engagement with potential clients at the beginning of the year to ensure future growth and sustainability. She acknowledges that achieving these goals may involve challenging or unpleasant tasks, highlighting the need for resilience and strategic action.
"I think that one of the reasons why some agencies are struggling is because they're not taking a fresh look at what they do, how they fit into that picture. And I think there needs to be a lot more creative thinking. And I think AI is a big driver of it, not necessarily in the way that people think, though I don't see AI as taking away agency work. I see it as agencies just haven't figured out how to capitalize on it effectively."
Chip Griffin posits that a lack of fresh perspectives and creative thinking contributes to agency struggles. He identifies AI as a key factor, not as a replacement for human work, but as an underutilized opportunity for agencies to innovate and adapt their services.
"If you're an agency that can help with one of those two things [upskilling or using AI to improve productivity], or both of those things, you're gonna be in better shape than an agency who does new media news releases and news conferences, and you know, social media. So if you can think about how you can provide professional development or help an organization implement AI from a marketing and communications perspective, you're gonna be a lot further ahead than those that can't do that."
Gini Dietrich explains that agencies focusing on AI-driven upskilling and productivity enhancements for clients will outperform those offering more traditional services. She suggests that providing expertise in AI implementation for marketing and communications offers a significant competitive advantage.
"So I think in the planning process, there's a lot of ways that we can use the AI to help us. I think we just need to be careful about using it to give us the answers and instead help it to guide the conversations for sure. That we're having with our teams and with our clients, because it will inevitably help us find things that we are overlooking."
Chip Griffin advises using AI as a facilitator in the planning process, rather than a source of definitive answers. He believes AI can guide discussions by highlighting overlooked aspects, thereby improving preparation and strategic foresight for teams and clients.
"And I do think more than ever continuing forward on the path that you're on for the vast majority of agencies is not a good idea. I think most agencies require at least some modest course correction and some more than that. And so I think that we've already talked about, you know, what kind of services you can deliver and those kinds of things. But I think the other thing we all ought to be looking at in 2026 is the definition of our ideal client."
Chip Griffin reiterates that maintaining the status quo is detrimental for most agencies and that significant adjustments are necessary. He emphasizes that redefining the ideal client profile is a crucial element for 2026 planning, given the evolving impact of economic and technological changes on clients.
Resources
External Resources
Articles & Papers
- "How to use AI to help improve your professional development and the work that you're doing to make you more productive" (LinkedIn post by Perry Hedrick) - Mentioned as an example of how companies are advising employees to adapt to AI.
- "How to change your vocabulary to get the most out of the various generative AI platforms" (Video by Chris Penn) - Discussed in relation to the need to adapt language for AI platforms.
People
- Perry Hedrick - Mentioned for his LinkedIn post about navigating recessions and using PR.
- Chris Penn - Mentioned for his video on adapting vocabulary for generative AI platforms.
Websites & Online Resources
- agencyleadershippodcast.com - Provided as the URL for more information or past episodes of the podcast.
Other Resources
- AI (Artificial Intelligence) - Discussed as a key driver of change impacting agency services, planning, and productivity.
- 2026 Planning - The central theme of the episode, focusing on business growth strategies and adaptation.
- Recession - Referenced as a past economic challenge that required specific business strategies.
- "Boiling the frog" analogy - Used to describe the prolonged difficult period agencies have experienced.
- "Malaise" - Used to describe the current general economic and agency sector sentiment.
- "Co CEO GPT" - A personal AI tool built by one of the hosts to assist with business planning and projections.