As clients ask about AI capabilities, how can agencies differentiate?

Clients are already asking agencies hard questions about AI usage. How can you stick out from the pack?

How agencies answer queries over their AI expertise could be a big factor in new business success next year.

A recent research note from Gartner highlighted the questions marketers should be asking about agency AI capabilities – suggesting they focus on internal workflows, ethical guidelines, client work produced using the tech and finally, staffing and pricing implications.

Putting together a stance that answers marketers in a convincing, forward-facing manner – and that does so in a way that distinguishes your agency from its rivals – isn’t easy.

To find out how agencies hoped to meet that challenge, we asked a range of experts from across the sector.

Oli Feldwick, head of Innovation, The&Partnership: “’A fool with a tool is still a fool,’ wrote Grady Booch. Getting a license to Photoshop doesn’t make you a designer and logging in to ChatGPT, or getting Midjourney working, doesn’t make you a world-class AI-powered creative. It’s not just about the tools. It’s about the best tools, fine-tuned to specific tasks, in the hands of people with vision and know-how to use the tools to achieve it. As AI tools make it easier than ever to create averagely good outputs, the need for excellence and inspiration increases. It’s time to focus on the humans using the tools and not just the tool itself. I hope it’s not too late for you.”

Dustin Callif, president, Tool: “It’s time to make the Kool-Aid. Brands are looking for tangible (not theoretical) ways to leverage AI. We started a consulting practice that allows brands to directly apply AI to their specific content creation use cases and see first-hand solutions within two- to four-week sprints.”

Raina Roberts, EMEA director, StackAdapt: “In an era where AI tools like ChatGPT, Midjourney and Elevenlabs are accessible to all, the key to standing out in such a competitive landscape lies in strategic differentiation. Agencies should focus on showcasing specialized applications of AI tailored to specific industries or unique challenges. Emphasizing industry partnerships and leveraging existing tools can help set an agency apart. Clients value not just the tools but the expertise in crafting bespoke solutions that address their distinct needs.

“To truly stand out in the AI race, agencies must go beyond the tools themselves, highlighting a nuanced and customer-centric approach that exceeds the common utilization of readily available technologies. Contextual advertising targets ads based on what the audience is currently viewing, ensuring they see the ads when they’re most likely to be receptive, resulting in maximum ROI.”

Tom Ajello, senior partner, experience, innovation and engineering, Lippincott: “In short, you have to experiment. The idea of being a ‘next-level strategic thinker’ is tables takes in our industry; you have to be a strategic doer. Not just consult, but create. That’s’ what we’re doing at Lippincott; we’re getting our hands in the dirt with experiments across our capabilities – including customer research, messaging, writing and naming, art direction and design, and more. There’s been plenty of ink spilled from agencies, brands, marketers, journalists and beyond on the power of AI; I think what can set practitioners apart is their ability to understand the tools, the impact those tools have on their profession and how to harness them in unique ways that truly drive results for clients. And, if you can pull clients into experiments as willing participants, even better.”

Oliver Kasicki, head of development, Bolser: “Here’s a starter for four…

“Creative AI blends: Mix different AI technologies for innovative solutions. It’s about combining tools in clever ways to solve problems that others haven’t even thought of yet! A technical alchemy of sorts.

“Showcase real-world impact: Highlight your AI success stories. Showcasing real applications of AI that have made a difference is like having a portfolio of triumphs – it speaks louder than words.

“AI for strategic insights: Use AI to uncover deeper insights. It’s not just about automating tasks; it’s about revealing opportunities and strategies that others might miss.

“Sophisticated AI problem-solving: Demonstrate how your AI approach elegantly tackles complex issues. Show that you’re not just using tools but crafting solutions with intelligence and flair.”

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John Cunningham, chief tech officer, Valtech: “Agencies need to act as a pragmatic compass in the complex landscape of AI. After all, agencies are consultants by nature, so their value-add is all about guiding and supporting business leaders on their AI and data journey and building a culture of data-driven decision-making. By focusing on demystifying the complexities of the technology through predefined experiments, workshops and prototypes aligned to real business challenges, agencies become trusted advisors, not just sea-of-sameness echo chambers. It’s less talk and more doing, more mining for insights. Showing – not saying – how AI can deliver value back into the business. And elevate the humans, not replace them as some larger networks are, and that is what’ll separate the agency AI visionaries from the rest.”

Rhys Cater, group chief solutions officer, Precis Digital UK: “Using AI to increase productivity and automate basic tasks is going to become table-stakes very soon if it isn’t already. To truly break new ground, agencies need to be creative in how they apply this intimidatingly powerful new tech.

“In my mind, there are two ways to do it. Firstly, by thinking deeply about how to apply AI to very specific business cases and crafting bespoke solutions that unlock previously unexplored possibilities – for example, a custom value-based bidding model using gen AI over customer data wired up to bidding platforms. Secondly, by innovating new products that harness the power of gen AI and direct marketers to deploy it in the right ways – for example, an agency tech platform (such as we have at Precis) with an AI overlay to enable marketers to interact with and activate their data more intuitively than ever before.”

Adam Samson, creative technologist, FutureDeluxe: “From Midjourney through to Dall-E, it’s true that we’re all using the same tools. But the same can also said for any creative tool, like Adobe Suite. Results depend on the intuition of the talent using it. Any software mastery comes with time. More advanced users can operate more difficult features. And the same is true for AI tools like Stable Diffusion which can be modified and adjusted with technical expertise and trial and error. So winning the AI arms race is not about the tools you use, but the talent who use them.”

I’m always looking to get new voices and perspectives into our regular debates. If you’d like to join in with future discussions, let me know: sam.bradley@thedrum.com.