The creative agency world is undergoing a profound transformation. Many are feeling the pressure to use AI in their business plans and processes, while some are digging their heels in and hoping that human creativity will win the long game. Questions such as “Should we use AI?”, and “How do we create value for clients with AI?”, are increasingly at the forefront of many agency owners' minds. With more money being invested in AI and more tools and technologies on the market in the creative sector, the competition has never been more fierce. Once thing remains though: there are still people out there who value creativity that comes from a human, and only a human.
At Haddington & Haddington, we’ve been tracking how agencies are evolving in this AI era and have identified three main groups that we'll discuss in this blog. Understanding these categories will help our own clients (and potential clients) to make informed decisions about the type of agency that suits their ambitions and how they want their company to be represented.
Volume agencies (quick and cheap)
When someone first goes into business or starts-up a company (especially a small business), they'll have a list of things to sort out on their to-do list. This will typically include everything from getting a company bank account and accountant, to sorting supply chains, premises, trading licences, insurance and the list goes on. Another main 'box' they'll want to tick is getting a website. If they want to save money, they'll go to the cheapest of website offerings, keeping costs as low as possible. This is where the 'volume agency' comes in. These agencies use very little human creativity (if any at all), and rely on AI to produce websites quickly and cheaply to templated designs. Rather than waiting weeks for your design, you'll have something in a matter of hours or even minutes. This is great if you want to just tick a box that you have a website.
The competitive advantage of volume agencies lies in speed and cost efficiency, rather than uniqueness or craftsmanship. Agencies with this business model have one aim – to churn out large volumes of content and to get as many clients as possible, with all work standardised and templated, and minimal or no customisation.
For clients wanting cheap branding, websites and copywriting services, these agencies can be tempting. However, there are pitfalls. When creativity is reduced to an assembly line process, the work risks being cookie-cutter, generic and ultimately forgettable. For example, with copywriting, an AI isn't a human brain and will only replicate information it's been trained on. There's also a great risk that the content being turned out may be factually or grammatically incorrect.
Many clients find themselves paying for quantity over quality, losing the subtlety and personality that really makes a brand stand out. While AI can accelerate content creation, it can't replace human insight when it comes to nuanced branding, strategic storytelling and the emotional resonance that engages audiences.
Agencies becoming leaders in innovation
The second category consists of innovation leaders. These agencies are investing heavily in AI tools and experimental workflows to create experiences that were once unimaginable. Think bespoke platforms that generate synthetic audiences, or AI models that achieve near-perfect correlation with human focus groups.
These agencies are often well funded, with lots of money in their coffers to throw at new technologies. Their building capabilities are something that smaller competitors cannot easily replicate, and they’re developing entirely new services and can command premium pricing as a result. Yet even here, there’s a cautionary tale. Many agencies are stuck in what we call the 'experimentation trap'. This means they're unable to transition from mere adoption to successful innovation. Structured skill development, governance frameworks and well-thought-out AI adoption strategies are what separate the few who succeed from those who falter.
For clients, these agencies offer cutting-edge solutions, but the risk is uneven execution. While innovation leaders may excel in data-driven campaigns or AI-enhanced strategies, some may struggle to deliver consistent creative quality due to their reliance on new AI tools.
Creativity specialists: the human-first approach
At the other end of the spectrum (group three) are craft specialists and agencies that take a human-first approach like us at Haddington & Haddington. Here, human creativity is the cornerstone. Our approach prioritises completely bespoke work that cannot be replicated by AI. From logo design and typography to web development, copywriting and print design, the focus is always on delivering a distinct, authentic experience for each client.
Despite the allure of AI, the demand for hand-crafted creative work remains strong. Clients are willing to invest in originality and differentiation in a sea of generic, AI-generated content. While not every client may have the budget for a fully bespoke website or brand identity, using tools like Webflow enables us to create solutions for even the smallest of budgets for our clients. This approach allows us to produce premium creative work that grows with our client’s needs, without the prohibitive cost often associated with high-end design.
Our experience shows that AI can enhance creativity, but it cannot replace the instinct, taste and emotional intelligence that a skilled human designer brings to every project.
Pricing, partnerships and the middle ground
As agencies evolve, so too does pricing. The traditional “time × rate = fee” model is giving way to “impact × expertise = value.” Some agencies experiment with retainers or efficiency-based pricing, while others explore revenue-sharing models.
There's also a growing middle ground of agencies that try to innovate with AI but lack the resources or expertise to fully differentiate themselves. These agencies often feel the most pressure, caught between low-cost volume producers and expensive innovation leaders. For clients, this can mean uneven quality, inconsistent delivery and strategies that fall short of their potential. This filters down into pricing, with clients having deeper questions about value and quality of work produced.
The new landscape favours agencies that can transform their business model rather than simply adopting technology. The winners are those who prioritise human creativity, but use AI as a tool for strategy, heavy lifting and initial research rather than as a substitute for good design.
Why human-first creativity still wins
Despite all the AI hype, certain creative skills haven't diminished in value. Whether it's logo design, branding, typography, copywriting, web design, print, UX or digital design, it still requires human judgement, taste and emotional connection. There is a value to work that is distinctive and thoughtfully executed.
The creative agency landscape is evolving and changing more quickly than ever before. Agencies that thrive in the AI era are those that balance efficiency with creativity, experimentation with governance, and technology with human insight. For clients, understanding these distinctions is critical when selecting a partner, and you need to know which 'group' an agency falls into before deciding to work with them, as this will determine whether you're in-sync on values.
At Haddington & Haddington, we remain committed to human-first creative excellence. In a world awash with AI-generated content, we believe we have the ultimate competitive advantage.
