Agency Business #63: The real agency AI divide: data, commercial models, and what's next
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Mar 23, 2026 Tucker Lake, a Madison & Wall consultant who led research into agency AI, shares findings on how large agency groups are approaching AI. He explains why many AI offerings look surprisingly similar. Topics include debates about AI replacing creative roles, shifts from FTE fees to SaaS models, and the split between data maximalists and minimalists.
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Keep Humans For Institutional Oversight
- Keep humans in the loop for large institutional clients because human oversight can prevent errors machines miss.
- Smaller businesses may run more automated systems, but institutions often need a human 'in the way' for control.
Plan For Restructuring Not Instant Cost Cuts
- Expect a restructuring phase: don't assume immediate cost savings from AI because skill sets and review processes must change.
- Olivia warns agencies will need staff trained to manage broader AI outputs and new workflows.
Commercial Model Is The Central AI Question
- The commercial model question will determine how AI changes agency economics.
- Agencies dream of SaaS or hybrid models but ANA data shows FTE/fee models still dominant today.