Are creative agencies totally f***ed? Reflections from Web Summit 2024
The Drum’s editor-in-chief reports from Lisbon, where he was hosting a panel discussion on 2025 Vision: The Evolution of Creative Agencies.
![[Left to right] Max Lederer from Jung von Matt, Karen Boswell from VML, Gordon Young from The Drum and David Abraham from Wonderhood Studios](https://thedrum-media.imgix.net/thedrum-prod/s3/img_5099.jpg?w=608&ar=default&fit=crop&crop=faces&auto=format&q=100 "[Left to right] Max Lederer from Jung von Matt, Karen Boswell from VML, Gordon Young from The Drum and David Abraham from Wonderhood Studios")
[Left to right] Max Lederer of Jung von Matt, Karen Boswell of VML, Gordon Young of The Drum, David Abraham of Wonderhood Studio
Now, I’m not one to mince words, so let’s get straight to it: are creative agencies totally and utterly f***ed? That’s what I asked myself – and the stellar lineup of panelists – as we kicked off 2025 Vision: The Evolution of Creative Agencies at Web Summit 2024. We’re in the middle of an AI gold rush, yet the real conversation isn’t about shiny new tools but about a very inconvenient truth: the traditional agency model might just be outdated.
David Abraham from Wonderhood Studios was quick to remind us of what’s at stake. “AI gives us new tools, sure, but the art of storytelling is still in human hands.” It was a poetic sentiment, but it highlighted the paradox at play: creativity is 95% of what makes an agency valuable, yet it barely contributes 5% of the revenue. Agencies are still cashing in on production and logistics – exactly the areas AI will likely bulldoze first.
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Then there was Max Lederer from Jung von Matt, who threw out a truth bomb that’s stuck with me since: “The old billing models? They won’t survive.” According to him, AI could democratize creativity, allowing clients and creators alike to collaborate like never before. But if agencies are too busy clinging to outdated revenue streams, they’ll be left in the dust. The only way forward, he suggested, is to lean into collaboration and prepare for an era of user-generated, AI-boosted creativity.
Karen Boswell from VML cut through the noise with a pragmatic (and memorable) line: “Humans with AI will replace humans without AI.” She wasn’t talking about the apocalyptic “robots taking over” – it was about leveling up. Her agency is reorganizing into flexible, cross-functional teams that shift around client needs. Forget the rigid silos; Boswell’s vision is fluid, dynamic and tailor-made for the demands of tomorrow.
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But here’s the kicker – every single one of these panelists admitted that the big challenge isn’t adopting AI. It’s about holding on to the human touch. “Clients think AI means they won’t need creative minds any more,” Abraham warned, “but that’s a myth.” The danger isn’t AI itself; it’s the risk of agencies becoming so enamored with automation that they lose the very thing that makes them valuable: genuine human insight.
So, are creative agencies f***ed? Maybe – but only if they let themselves be. The future won’t wait for anyone and it’s clear that if we want to stay relevant, agencies need to rethink their business models, embrace AI as an ally (not a threat) and double down on creativity as their core offering. As Boswell put it: “Put your people first and the rest will follow.”
Memorable words and a pretty good rule for life, if you ask me.