What 225 agency leaders told us about marketing’s next chapter.

We’ve all seen the headlines: AI is transforming marketing. But what does that actually look like inside an agency?

This summer, we surveyed 225 senior agency leaders (those with a VP+ title) across the United States to find out. What emerged was a portrait of an industry in purposeful reinvention. While 100% of agencies now use AI in some capacity, the real story isn’t about adoption. It’s about what comes next.

Here’s what we found.

Finding 1: With entry hiring scaled back, size matters less.

The most immediate impact shows up in hiring — or, at least currently, the lack thereof.

Our report reveals that 57% of agencies have either slowed or paused entry-level hiring. What’s more, when we asked leaders to rate AI’s capabilities across key marketing functions — such as copywriting, media planning and UX design — they consistently ranked it at the level of a mid-career professional.

This perceived competence of AI is reshaping the traditional agency ladder. The pullback is most pronounced at larger firms. More than half of agencies with 500+ employees anticipate significant headcount reductions within three years, compared to just 31% of small agencies. Traditional marketing and advertising firms are bracing for the deepest cuts.

“We’re automating content drafting without any headcount growth.”

VP-level marketing agency leader

The takeaway? If agency size was once a proxy for capability, that metric is being rewritten. The question is no longer how many people an agency has but rather how effectively it orchestrates senior expertise with the help of AI.

Finding 2: The value prop shifts to senior partnership.

As AI absorbs more entry- and mid-level execution work, agencies are rethinking what they uniquely offer to their clients.

We heard this shift articulated differently — “trusted adviser,” “strategic partner,” “AI integrator” — but the core idea remained consistent: Agencies are shifting from being evaluated on output to being valued for judgment, context and senior-led collaboration.

This evolution is reflected in the numbers: 91% of leaders see a future in which agency headcount is somewhat or substantially reduced by AI. At the same time, 52% are building AI-powered agents, with nearly nine in 10 reporting these agents are already embedded in daily workflows.

For about one-fifth of agencies, this repositioning begins with an AI task force — a cross-functional team driving responsible AI use. Our data shows these task forces improve integration: Agencies with them are more likely to report AI being “deeply embedded” in daily functions (70% vs. 58%).

“Our role is shifting from being creators of content to becoming curators of insight, context and authenticity.”

C-level marketing agency leader

Finding 3: Marketers become even more of a hybrid.

Agencies are reshaping their teams around roles that blend creative fluency with technical depth.

Currently, 75% are hiring for AI- and automation-focused positions. At the same time, more than half are bringing on machine learning engineers or data scientists — functions that once sat outside the marketing ecosystem.

The most in-demand roles? AI content specialists, AI strategy leads and marketing automation managers. Meanwhile, “prompt engineer” — a role that generated hype just a year ago — is already fading. It’s the least-prioritized AI function among agencies we surveyed.

The message is clear: Narrow, tactical AI aptitude isn’t enough. The marketing skillset of 2030 is less about knowing how to “speak to” AI and more about integrating its use within creative and strategic workflows.

Agencies are also reskilling existing staff. Mid-size and large firms lean on self-guided learning, while smaller shops take a more collaborative approach through team demos and knowledge shares.

Beyond scale, toward stewardship.

The transformation underway isn’t just technological. It’s structural, cultural and deeply strategic.

Larger agencies are planning headcount reductions. As a result, entry-level staffers may find it harder to break in. The skills required are shifting toward a blend of creative and technical fluency.

Still, our overarching finding is one of purposeful adaptation, not doom and gloom. Agencies aren’t just reacting to AI; they’re actively reconceiving their role. They’re positioning around senior-led partnership, investing in hybrid talent and building governance structures to ensure AI is deployed responsibly.

“Our courage to recommend approaches that challenge conventional wisdom is what sets us apart from AI systems that tend toward consensus-based recommendations rooted in existing successful patterns.”

C-level marketing agency leader

It is this capacity for discernment — for judgment in the face of ambiguity — that we believe will define marketing’s next chapter.

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About this research.

In August 2025, Sunup surveyed 225 senior marketing agency leaders (100 at the VP level, 125 in the C-suite) across the United States. Respondents spanned agencies of all sizes and represented functional areas including executive leadership, operations, creative services and media. The full methodology and detailed findings are available in the complete report.