Business Junction CDM / AI-agency discussion notes

The Creative, Digital & Marketing group is a specialist interest group within the Business Junction community (www.businessjunction.co.uk ). Each session covers different topics, this time was the impact on generative AI on agencies. We thought it might be good to share the highlights.

The recent launch of ChatGPT and image generators like DALL-E have sparked energetic discussion on the transformative potential of AI. As one creative director put it, “I couldn’t stand halfway, getting people what they originally thought their careers were going to look like. And what they might be looking at future.” There is tremendous hype but also uncertainty around how these technologies might enhance or disrupt established agencies.

As we explore integrating these rapidly evolving capabilities, several key questions arise for SME marketing leaders:

“How do we produce authenticity when you can produce quite authentic things? And then it's where do people's knowledge base lie?"

"If everybody starts using this, to interact with others will say that we'll press the buttons and get all these followers and maybe clients from our social media, but then we're sitting there in the factory or on our own in our homes or wherever. And it's the saddest, saddest picture that we can paint."

There are clearly opportunities but also ethical hazards regarding AI adoption. How can we competitively capitalize on the upsides while navigating concerns? How will client and audience expectations shift regarding integration?

This session yielded 3 core takeaways on strategically leveraging AI:

Takeaway 1: Creatively Embrace the Possibilities

Rather than reacting with fear to potential disruption, the orientation amongst these innovators is proactive experimentation. As one marketing founder put it, "I'm going to certainly explore it used as a research tool. I still think my little bit of fairy dust is valid though. And that's the better. We'll concentrate on selling extra sparkle."

The goal should not be full automation but rather amplifying imagination and productivity via intelligent augmentation. Just as calculators and computers ushered in new creative frontiers previously unimaginable, AI systems hold similar generative promise.

Suggested actions:

• Actively test and request access to leading AI platforms from Anthropic to DALL-E to understand current capabilities and limitations
• Maintain an opportunity mindset - where can these tools enhance ideation, personalization and efficiency to free up creative bandwidth?
• Seek out low-risk pilots to responsibly incorporate select AI generators into campaigns and content development to quantify value

As one marketing leader concluded, "Then use as much as possible and teach clients how to be authentic using AI, which is obviously wrong." While a bit tongue-in-cheek, the core truth is that strategic adoption with ethical responsibility is key to long term-integration.

Takeaway 2: Relentlessly Focus on The Human Factor

A repeated theme was that while AI promises new efficiencies, innate human qualities remain out of reach of algorithms. As one creative emphasized, "because he's kind of like I've thought about it as well in terms of a sort of a mathematical sort of programming point of view...they're evolving mathematics like models which are taking all that information, drawing it all together and producing something from it."

The "X factor" of relatability, wit, wisdom and empathy cannot be replicated. Just as the resurgence of vinyl renewed interest in the warmth and tangibility of physical media's imperfection, there will likely be demand for the undeniably human element in the face of increasingly slick AI output.

Suggested actions:

• Audit current service offerings - where might AI enhance or threaten specialized human skill?
• Double down on and quantify the value unlocked via personalization, humor and counsel only veteran strategists can impart
• Sharpen positioning around the customization and quality assurance benefits unlocked by human guidance of AI
• Resist the inevitable race to the bottom if AI generation becomes an over-relied upon commodity

The emerging imperative is identifying what clients uniquely need from human collaborators augmented by AI versus what they can DIY. As one founder asked, "What do they need? All of us for?" Discovering those answers is the key to futureproofing.

Takeaway 3: Set Realistic Expectations on Impact

For all the exciting potential, the discussion reality-checked that in the near term AI adoption journeys may be uneven and underwhelming rather than seamless. As one strategist reminded, "in the hype cycle, right under the Gartner Hype Cycle 2024 is definitely a trough of disillusionment. You know, we definitely hit the bottom because people will get bored of it."

Between limitations around judgment calls, biases, and approximation versus reasoning, the technology remains nascent. Expectations and trust need calibration. As an account director noted, current models can still "get specific things wrong" in frustrating ways that undermine perception of accuracy.

Suggested actions:

• Educate colleagues and clients on the pros and cons of current AI - it is not ready to wholly take over complex services and deliver flawlessly without guidance
• Co-create boundaries and policies for where generating prototypes makes sense versus reviews and refinement by veteran strategists
• Evaluate productivity enhancements but don't overindex on efficiency over quality, safety and continuity benefits of human collaboration
• Be transparent about how AI is and isn't being applied; demonstrate responsible practices

Rather than buying into unfounded fears or hype, savvy agency leadership should steer a balanced course - creatively building in efficiency while staying grounded regarding expectations. This clarity and strategic incorporation focused on ethical human+machine collaboration is the ultimate path to leveraging the future.

Key Next Steps for Thoughtful Exploration

This glimpse into the potential promises and pitfalls of AI for marketing SMEs underscores why proactive yet judicious adoption is vital for agencies charting the way forward. Below are recommended next steps for laying the foundations:

1. Request access to and begin methodically testing leading AI platforms targeting relevant marketing use cases rather than shrugging off the trends
2. Honestly audit current service offerings - which talents and tasks might AI enhance versus threaten as algorithms grow more advanced?
3. Research and reflect on ideal applications versus concerning uses from account security to personalization that should be out of bounds to thoughtfully shape policies
4. Run controlled AI integrations such as using ChatGPT for initial campaign frameworks then measuring productivity vs. relying solely on outputs
5. Sharpen unique value propositions and positioning around the customization and continuity benefits unlocked by specialized human guidance of AI

The rise of these exponentially developing technologies presents daunting but exciting territory for agencies poised to lead. Those who strategically harness AI’s upsides while confidently providing the creativity, wisdom and relationship-building only humans excel at will guide clients into this next era. The opportunity awaits.

What questions remain on how to make AI work for rather than against your agency? The conversation continues.

Assorted Thoughts

1. AI can currently automate about 80% of certain tasks/jobs, but there is still value in the remaining 20% that requires human skills like creativity, empathy, and wisdom. Agencies can differentiate themselves by focusing on that human element.
2. There is concern about AI generating fake/inauthentic content and people potentially revolting against that. Agencies should aim to produce authentic and high-quality content, not just generic AI-generated content.
3. AI bias is a major issue that needs to be addressed. The models reflect societal biases and prejudices.
4. AI will likely lead to further job disruption and inequality. Some jobs like junior roles may be eliminated. Apprenticeship models may be needed to train the next generation.
5. Incorporating an AI ethics perspective and focusing on responsible/safe uses of AI will be important going forward.
6. By 2024, there may be some disillusionment with AI as the hype wears off and people realize it didn't live up to all the promises. Agencies should have realistic expectations about how AI can and can't help.

Agencies need to thoughtfully leverage AI's capabilities while still providing value through human skills and ensuring ethical, authentic uses that don't compromise quality. The human element remains critical.

Preparing for Change

1. Embracing AI tools: Several people talked about actively using AI tools like GPT, DALL-E, and other creative platforms to get familiar with capabilities and limitations. They aim to harness AI to enhance human work rather than be replaced.
2. Focusing on human skills: Many emphasized developing skills AI lacks - creativity, empathy, critical thinking, etc. Authors said to "double down on selling the extra sparkle" that only humans can provide.
3. Rethinking business models: Some suggested agencies will need to rely less on junior roles and revamp apprenticeship models to develop talent. There's also opportunity in helping clients use AI ethically/effectively.
4. Adapting offerings: Agencies can educate clients on AI's pros and cons, integrate AI responsibly into campaigns, and use AI to make backend processes more efficient. The focus is still quality, authentic content.
5. Managing expectations: People noted that by 2024, reality may not match "hype" as limitations become clearer. Preparing means having realistic outlooks on how AI can and can't transform industries.

In general, the advice was to make space for AI while expanding very human skills. Agencies need to creatively integrate AI into business/talent models rather than hand over roles completely. There are still distinct value-adds people provide, but proactively adapting is crucial.

Key challenges

1. Commoditisation threat - If AI content/creative generation becomes an easily accessible commodity, agencies lose their differentiation and value proposition.
2. Inauthentic output risks - Low quality, generic, fake-seeming AI output could cause backlash amongst audiences desiring authenticity.
3. Job disruption fears - Entry-level & junior roles could be most vulnerable to displacement as AI automates rote work. Could lose future talent pipeline.
4. Ethical hazards - Irresponsible uses of AI like biased algorithms or fake endorsements/content could seriously undermine trust and reputation.
5. Unrealistic expectations - The "hype vs. reality" gap around AI's actual maturity level setting up disappointment. Danger of overpromising.
6. Uneven access - Smaller agencies may not have the resources to keep up with costly enterprise-level AI tools. Could widen advantage gaps.
7. Opaque AI behaviour - The "black box" behind AI decisions means the causes of failures like biases are opaque and hard to address.

The central tension seems to revolve around benefiting from AI's scalability while avoiding the pitfalls of dehumanisation, erosion of quality and trust. Walking this tightrope strategically will determine which agencies lead the pack.

Attendees

Host: Jon Bains - Obsolete.com

Ketan Raval - Amoveo

Ruth Napier - R Napier Consulting Ltd

Sarah Clay - Sarah Clay Social

Simon Cripps - Smart Cow Marketing

Drew Ellis - Like Minds

Ray O’Neill - Strip Studios

Sunil Kalia - AVA Seo

Inkeri Abbotts - Linguarama Ltd

Jack Barry - Linguarama Ltd

Eamonn Foy - Stone Creative Design

Paul Vincent - Stone Creative Design