Marketing Agencies In The Age Of AI: Innovation Or Extinction?

The world of marketing and PR is changing faster than ever. Just like every other industry, new technologies such as AI are shaking things up, creating both exciting possibilities and tricky hurdles to overcome.?

For marketing and PR agencies to stay on top, investing in AI isn't just a bonus – it's a must-have to stay competitive and relevant.? Here at Rad AI, we're passionate about helping agencies harness the power of these tools. We're constantly exploring how AI is, and can change the way marketing and PR work, giving agencies the edge they need to stay ahead of the curve. We love seeing good use cases, so today we’ll call out a few.

Consider Walmart, the largest retailer in the United States, with 1.6 million employees. Walmart exemplifies how AI can revolutionize business operations. Through its employee app, “My Assistant,” Walmart leverages AI to streamline tasks such as answering questions about benefits, summarizing meeting notes, and writing job descriptions. This technological integration has significantly increased efficiency, allowing employees to focus on more strategic, value-added activities. Walmart's experience showcases AI's potential to transform traditional business models and boost productivity on a grand scale.

The potential of AI extends far beyond retail and into the realm of marketing and public relations. And for good reason, according to a study by McKinsey, AI automation could raise productivity growth globally by 0.8 to 1.4 percent annually. Economists, including Federal Reserve Chair Jerome H. Powell and New York Fed President John C. Williams, have acknowledged AI's potential to enhance productivity significantly, even as they caution about its immediate impact. This productivity boost is crucial for any marketing firm under pressure to deliver results in an increasingly fast-paced and competitive environment.

All of this is to say that the trend of integrating AI into marketing and comms is rapidly gaining momentum. Many communications and advisory firms are rolling out proprietary AI tools to offer to their clients. For instance, BCW and Teneo use AI to monitor global trends and for predictive measures, treating AI as a proxy for specific audiences and then message testing against it. Edelman has integrated its Trust Barometer data into a proprietary AI tool called Archie, which tracks trust dynamics and offers real-time recommendations to enhance trust. Currently, 50 of Edelman's client teams are actively using this platform.

Let’s also look at top communications/PR agencies that have launched AI-powered products like Perspectives and ProfileLift to improve the prediction, crafting, and analysis of specific content or messaging. Gregory FCA quickly introduced a free AI press release generator in early 2023 and has since developed personalized GPTs for media monitoring, media training, and content refinement. In fact, a quick glance at any top agency – social, PR, marketing, content, or otherwise - and you’ll quick find nearly all touting their use and adoption of AI to cut things like overhead fees and “paperwork headaches” for clients.?

Moreover, professional services firms like PwC and Accenture are investing substantially in AI. PwC has allocated $1 billion for AI upskilling of its workforce. Accenture is investing in generative AI tools like Writer and training Adobe Firefly on its proprietary data and brand guidelines. Public relations agency SixEastern has partnered with Perplexity.ai to embed the "answer engine" into its PR offerings, using it to craft briefing documents, conduct media and industry research, and brainstorm creative concepts.

At RAD AI, we are poised to help PR firms of all sizes harness AI's power. We believe AI can significantly enhance the role of PR firms and publicists, enabling them to stay ahead of the curve and adapt to the changing landscape to meet their clients' evolving needs. Here are a few ways we think you can get started:?

• AI Tackles Repetitive Tasks: AI can dramatically cut down time on mundane tasks. According to a Muck Rack report, over half (52%) of respondents said AI made their work "somewhat better," while 22% found it made their work "much better." Moreover, AI speeds up work processes, with 52% stating it makes work progress "somewhat more quickly" and 37% saying it boosts speed "much more quickly." By automating repetitive tasks, AI saves time for PR professionals to focus on high-value activities like strategic planning and creative development. This shift improves efficiency and enhances job satisfaction by reducing monotonous tasks.
• Leveraging AI to Increase Media Pitching Success: ?AI can boost the success of media pitches by analyzing data to identify the best times and content for pitches. Propel's analysis of over 1 million pitches found that only 8% resulted in coverage, showcasing the challenges PR professionals face. AI tools can refine pitch timing and content based on data-driven insights, improving media engagement. For instance, AI can analyze past pitching data to determine the best times to send pitches or tailor messages to match journalists' interests. This approach leads to higher engagement rates and more successful media placements.

• Developing Better Performing Content with AI: ?AI can greatly aid content generation for PR professionals. According to TechCrunch and WWD, 71% of respondents hope AI will help with tweaking social media posts, generating surveys, creating talking points, assisting with FAQ documents, and refining drafts. While AI can quickly produce content, most users still find it needs significant editing. However, their potential to improve content quality grows as AI tools evolve. Using AI for content creation allows PR professionals to streamline workflows and produce high-quality content more efficiently.
• Choosing Better Influencers for Marketing Campaigns with AI: AI can optimize influencer marketing by identifying the most effective influencers and maximizing campaign impact. In 2023, creator content provided brands with $62.3 billion in earned media value, a 14% increase from 2022. AI tools can help maximize marketing campaign impact by selecting influencers who drive engagement and sales. For instance, AI can analyze social media data to find influencers with the highest engagement rates and most relevant audiences. This data-driven approach ensures targeted and effective marketing campaigns, leading to better ROI and more successful outcomes.

As AI tools continue to mature, they will be more seamlessly integrated into PR workflows. The role of communicators will evolve into that of an "orchestrator" – guiding AI tools to integrate outputs for the highest quality work product. Professionals will remain crucial for understanding context, making ethical choices, and building stakeholder relationships that machines cannot fully grasp. AI tools serve as members of an orchestra, while human orchestrators ensure the symphony is both harmonious and impactful.?

The future of PR lies in the harmonious integration of human expertise and AI capabilities, driving innovation and success in the industry.