TL;DR: Jules Love, co-founder of Spark AI, spoke to Ruairidh Duguidat AI Summit London about why generative AI hits creative agencies harder than most, and what to do about it. Jules explains how traditional hourly pricing traps agencies as they adopt AI, and where the real opportunity lies instead.
Jules Love in conversation with Ruairidh Duguidat at the AI Summit London
A quick conversation, recorded live at AI Summit London. Jules Love, co-founder of Spark AI, sat down with Ruairidh Duguidat for a short, direct take on where agencies actually stand with AI right now, what's changing, and what to do about it.
Duration:
9 Minutes
Who its for:
Agency Founders, Creative Directors, Marketing Leaders
What is it about:
Agency pricing, and commercial Strategy
Format:
On-Demand Video
Why agencies are exposed, and how they're priced
Generative AI can write words and create images, which is what agencies have traditionally sold as a service. That puts the industry at the centre of the disruption. The exposure is made worse by how agencies price their work. Hourly, input based pricing means that as agencies get faster with AI, clients expect that speed passed straight back to them as savings.
Where the real opportunity is
The opportunity of AI should shift away from being seen as a tool to in cut costs internally. Instead, the it lies with how it can be used to reimagine what brand and customer experiences can be. Jules argues the agencies that help clients do this are the ones who will win over the next few years. That means moving the commercial conversation away from hours and towards outcomes, proprietary methods and productised services.
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Spark Intelligence #49 covers this in more depth, including the different pricing routes agencies are taking and where each one fits. Read it here
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