Agencies are investing heavily in proprietary AI tools, but Gartner warns many may become obsolete as open-source platforms dominate enterprise AI.
Advertising agencies are racing to prepare for an artificial intelligence–driven future, restructuring operations, acquiring technology firms and launching proprietary AI platforms in hopes of reigniting growth.
But some analysts warn those bets may not age well.
Research firm Gartner predicts that half of the proprietary AI platforms built by agencies will either be retired or become obsolete by 2029, as open-source technologies developed by major cloud providers gain dominance.
Those providers — often referred to as hyperscalers — include companies such as Google and Amazon, whose AI systems can support enterprise-wide operations far beyond marketing. Open-source platforms are expected to power more than 75% of enterprise AI deployments by 2028, according to Gartner, largely because they offer greater customization and lower costs than proprietary systems.
For agencies that are investing heavily in their own AI ecosystems, that shift could present a structural challenge.
“I don’t hear agencies talking about these platforms — whether it’s WPP Open, Omni or others — as enterprise-wide AI systems,” said Jay Wilson, vice president and analyst at Gartner for Marketers. “That’s the big disconnect or risk. Agencies are still thinking about AI primarily at the marketing or advertising level, perhaps extending into customer experience.”
Who Controls Enterprise AI?
Another factor complicating the agencies’ strategy: who ultimately decides which AI tools companies adopt.
Marketing leaders have been among the earliest adopters of AI, particularly for tasks such as content creation and campaign optimization. But when it comes to enterprise-wide technology decisions, responsibility often lies elsewhere.
According to Wilson, chief information officers and technology leaders — not chief marketing officers — are increasingly shaping enterprise AI strategy.
“At the enterprise level, the CIO will likely own that AI roadmap,” Wilson said. “A CMO who is working closely with an agency platform may find themselves removed from that broader decision-making process.”
That dynamic could limit the influence of agency-built AI tools if companies choose to standardize on systems developed by cloud providers or internal technology teams.
The Value Agencies Still Offer
Despite those risks, agencies continue to play an important role as brands navigate the rapid adoption of artificial intelligence.
Wilson said agencies can offer value through training, speed of implementation and perspective drawn from working with multiple clients across industries and markets.
“What an agency provides that technology alone cannot replicate is an outside-in perspective on a client’s business,” he said.
Still, Gartner advises marketing leaders to approach agency AI offerings cautiously. Because agency relationships often change, relying heavily on a proprietary platform tied to a specific partner could create operational challenges later.
Switching between agency-developed AI tools could also prove costly or complex.
The firm recommends that companies avoid long-term commitments tied to agency AI systems and instead start with proof-of-concept projects and contractual flexibility that allows agreements to be terminated without penalties.
A Sector Under Pressure
The debate over AI strategy comes at a difficult moment for the agency industry.
Large holding companies have spent heavily on AI development while also navigating layoffs, restructuring and the elimination of legacy agency brands.
As AI technology becomes increasingly accessible — and in many cases open source — agencies face a new challenge: how to differentiate themselves in a market where many of the underlying tools are widely available.
For Wilson, the answer may lie in capabilities that have historically defined the agency business.
“The core value of agencies still comes back to creativity, innovation and customer insight,” he said. “AI provides the science, but agencies can still add the art on top of it.”
