Today, we look at the never-ending evolution of the digital agency. Some folks argue there is no such thing as a "digital" agency. That we're all just different flavors of marketing or software shops. I see many variations, though. From generalists to marketing to eComm to video to search to software to _______. And while I am in the "AI is another tool in the box" camp, there's something more happening here. Similar to when "web shops" spun out of advertising agencies in the early 2000s, I predict AI shops will form a new category focusing exclusively on AI for customers and beyond initial offerings like content generation.

And just like when advertising agencies tried to make designs pixel-perfect with feathered edges (if ya know, ya know), many of us will probably make some blunders as we try to fit the new tools into our current framework and experience.

So, if we aren't one of the new shops emerging, what should we do? Read on to find out!

The Times They Are AI Changing

If you're still sitting back and waiting to see how AI will shake out in the digital agency world, the results are in. Shops using AI and promoting their adoption are seeing an uptick in sales and profit. But just like when the web emerged and caught old-school advertising off guard, some of us are overextending our offerings and faking it until we're making it. But unlike slow load times and broken links, the stakes are higher this time. So here are some ideas for riding this new AI wave while the water level rises.

Partnering with AI Pure Plays 

Forming partnerships with AI Agencies and freelancers can be a great way to learn advanced AI strategies without significant upfront investment. Over time, you can build an in-house capability or a more permanent partnership. This gives you access to AI expertise and insights without the overhead and disruption of developing the capability internally.

Educate and Train Your Team

If you want to create the capability in-house, investing in training existing staff to understand and utilize AI tools is essential. Start with basic AI and machine learning courses and gradually advance to more specific applications relevant to your services. If you don't, your smartest, most excited folks will jump ship and join a new AI Agency or start their own.

Adopt AI Tools Gradually

Start with adopting AI-powered tools that do not require deep technical knowledge, such as automated content creation tools, AI-driven analytics, or customer relationship management systems. This can help improve efficiency while familiarizing the team with AI operations.

Focus on Data Collection and Management

Improve the agency's data handling and analytics capabilities, these are the foundations of AI success. Healthy data hygiene and strong data infrastructures also allow smoother transitions to more advanced AI applications.

Strategic Planning

Develop a long-term strategy for incorporating AI into business processes at a manageable pace. This plan should include clear objectives, investment in the team and the technology, and timelines for implementation to ensure a structured approach to becoming more AI-capable.

Look, we've been here before, and we'll be here again. Like the pre-web advertising agencies before us, we can learn the basics of this newest evolution to stay relevant or find new partnerships to offer our clients the quality and effective products and services they deserve. Let's go!

I know some of us are keeping our heads in the sand, some are naysaying that this trend will pass, and some are deer in the headlights. Take a deep breath and know you are not alone. Because some of us have dived into the deep end and are starting to thrive, if you'd like to hear more about some of the shops that have leaped, ask!

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