Breaking the Chains of the 'Paradigm of Knowledge Death': How AI Is Reshaping Agency-Brand Dynamics
Sebastian Vedsted Jespersen
Sebastian Jespersen - making a difference with Globant GUT
AI Disrupting the Digital Agency
After spending two decades in the digital agency world, I have observed the arrival and departure of various business models and innovations. Yet, the current disruption driven by AI stands out as fundamentally different. This isn't just an adjustment to existing practices; it's a complete overhaul of the industry itself.
As Globant Gut navigates this transformative landscape, we are focused on redefining the agency-brand engagement model and innovating new value creation and pricing models. These changes are crucial for ensuring that every component that goes into a deliverable—be it data, insights, strategic frameworks, design components, etc.—is not only accessible but also continually enriching the client's strategic potential.
The "Paradigm of Knowledge Death"
The "Paradigm of Knowledge Death" describes a significant challenge within traditional agency-client relationships, where the culmination of an engagement often leads to a substantial loss of value. This paradigm is prevalent in scenarios where, once a project milestone has been reached or a campaign concludes, the vast amounts of data, insights, and strategic intelligence generated during the engagement become difficult to access or even dormant.
Although these deliverables contain valuable information, they often do not live beyond the life of the project in a usable format, resulting in a loss of investment in knowledge creation and missed opportunities for ongoing strategic development and innovation for the brand. As a result, when the engagement stops:
The New, New Digital Agency Model
The "Paradigm of Knowledge Death" has vividly highlighted a critical need within the digital agency landscape for a transformative engagement model—one that maintains the vitality and accessibility of insights well beyond the traditional lifespan of agency-client projects. In my experience, the old models that led to the isolation and eventual stagnation of these valuable insights are becoming increasingly obsolete in today's data-driven, continuously innovating world.
In response to this challenge, we at Globant Gut have embraced cutting-edge AI technologies that maintain data that is live, accessible, and actionable for every stakeholder in the client organization. A cornerstone of this technological advancement is the introduction of Globant's Enterprise AI platform.
Globant's AI Enterprise Platform is technology-agnostic, meaning it operates independently of the underlying models or providers. This crucial feature allows businesses to leverage a variety of large language models (LLMs) and switch between them as needed, all within a secure, closed environment. This flexibility effectively decouples the agency relationship from any single technology, broadening the scope and utility of our tools.
The Enterprise AI platform is meticulously designed to foster robust collaboration between Globant Gut and our clients. Further, the Enterprise AI platform continually expands its offerings to include an increasing number of AI marketing-specific agents, providing our clients with tailored tools to enhance their marketing strategies and executions.
By empowering both parties to contribute new datasets and insights continuously, we ensure that our strategic intelligence remains relevant and increases in value over time. This collaborative approach enables Globant Gut and our clients to make informed decisions together, deepening our partnership and driving sustained innovation and improvement. We see this not just as collaboration but as creating a 'Share of Life' with our clients, where our contributions are integral to their ongoing success and strategic growth.
Alignment of interest
Redefining agency-brand relationships is essential in a market where data and insights serve as the bedrock for staying relevant as an agency and gaining a competitive advantage. By overcoming the "paradigm of knowledge death", agencies can align more closely with the value they create for clients. This alignment enhances the strategic use of insights and ensures that both parties are invested in the continuous growth, potential and success of their collaborative efforts. As the market evolves, adopting these new models will be crucial for agencies seeking to stay relevant and deliver sustained value to their clients in an AI-driven world.
Founder of The Internationalist
1 周Sebastian Vedsted Jespersen, you make a good point about AI’s disruption and the need to consider new and relevant agency models in a world where more than one trillion dollars are spent globally on advertising—a figure exceeding the GDP of 19 countries. All client-agency relationships should be grounded in mutual respect, clear communications, a shared commitment to excellence, and a willingness to allow both partners to do what they do best.?We’ll see many models emerge that fit different sizes and types of clients with varying needs.? Results from the ANA/4A’s Cost of Pitch survey reveal that if a typical pitch has three agencies as finalists, the average total cost of a review is about $1.2 million when an incumbent agency is involved. In addition to this financial impact, potential disruptions to routine operations, postponements in advertising campaigns and product rollouts, and the effects on relationships with partners mean that this process should be taken very seriously or perhaps even avoided. Change may be constant in the churning world of client-agency relationships, but it doesn’t have to break industry partnerships.??
Head of Strategy, US for Globant | Creating meaningful experiences that earn Share of Life?
2 周Such an exciting time! That initial knowledge investment is now more scalable and adaptable than ever.
Data and digital experience strategist
2 周Very excited for the launch of Enterprise AI!