AI Broke the Old Agency Model for Good
The consulting industry is experiencing a structural shift. A recent Financial Times report[i] highlighted that leading global firms are freezing starting salaries and reducing graduate hiring because AI has changed the economics of their traditional pyramid structure. Routine analytical work is automated, junior-heavy teams are less viable, and specialised expertise is becoming more valuable.
This shift is not limited to consulting. It is directly relevant to communications and public relations, where the traditional agency model is also being challenged. As AI reshapes workflows, talent profiles, and client expectations, brands must rethink what they need from their communications partners.
The old agency model is gone. A new one is emerging.
Why Traditional Communications Workflows No Longer Meet Today’s Demands
In the Financial Times report, firms are reducing junior roles because AI now handles the research, analysis and foundational work that once justified large entry-level teams. This is also reshaping communications. Tools accelerate media monitoring, draft writing, insights generation and reporting. Agencies must adapt.
AI accelerates execution but cannot replace seasoned judgment. The combination of senior expertise and AI support produces stronger advisory outcomes. Forward-looking PR & Communication consultancies such as GlobalCom PR Network therefore offer an integrated approach with a strong consultancy focus by experiences teams.
The New Communications Imperative: Cut Through Noise and Deliver Signal
Brands face increasing complexity. Agencies must filter information and guide decisions. Modern frameworks such as Adaptive Communications and Earned First models support this shift.
A New Phase for the Communications Industry
AI mature agencies offer faster response cycles, clearer recommendations and improved alignment with business goals. This is critical in fast-moving regions such as Southeast Asia.
AI has not reduced the need for communications, but it has raised expectations. Agencies must combine human expertise with intelligent technology to deliver meaningful outcomes. The old agency model is finished. A new one is here.
Our Expert
Lars Voedisch is the Founder and Group CEO of PRecious Communications and a member of the GlobalCom PR Network. He advises organisations across Asia on integrated communications, reputation strategy and AI supported transformation. Lars contributes commentary to international media and industry platforms.
Learn more about his view on modern communications transformation here.
[i] https://www.ft.com/content/2b15601b-8d02-4abe-a789-7862874042be
