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AI is no longer a disruptor, it’s part of the process: D&AD report

A landmark global study examining how artificial intelligence is reshaping the marketing and advertising industry from creative industry body D&AD, shared exclusively with Mumbrella, found agencies can no longer afford to “wait and see” on AI. 

Based on in-depth conversations with 291 creative leaders across 55 countries, the AI & Creativity Report 2025 outlined seven key shifts (see below for the list) that are already transforming agency culture, client relationships, pricing models, and the creative process.

The report set out an urgent call to action, finding that AI is no longer a novelty, with more than 75% of digital marketers already integrating AI tools daily, from pitch decks to production.

Dara Lynch, CEO of D&AD, said it reflects a pivotal inflection point for the industry: “At D&AD, we believe creativity is not static. It evolves, and in moments of disruption, it expands. We remain committed to human creativity, but the opportunities to evolve creatively will become more expansive because of new technologies.

“AI will free people up from mundane tasks, unleashing creativity and allowing them to focus on what truly matters. Moreover, ethics must be at the forefront; the creators and their creative IP need protection. D&AD will work with the industry to establish guiding principles that will continue to evolve.”

Dara Lynch

The report found the most pressing concern for agencies is trust, particularly around ethics and authorship. With generative AI tools now generating significant portions of creative output, attribution is in the spotlight.

“If a campaign goes viral and was 80% AI, who gets the credit?” one UK-based creative director asked.

91% of the report’s participants expressed ethical concerns. The unease was echoed in a growing wave of “creative resistance” across creative industries, from Hayao Miyazaki’s denouncement of AI art as “cultural theft” to the 2025 protest album of silence released by Kate Bush, Damon Albarn and over 1,000 other artists.

As AI replicates styles, voices and likenesses without consent, agencies face growing pressure to establish clear boundaries. “The next frontier is ethical, not technical,” the report states, warning that transparency is now a leadership imperative.

Generative AI is also upending traditional client-agency roles. The report details clients arriving at meetings with creative agencies with their own AI-generated mockups, expecting agency partners to be fluent in the same tools.

“Clients ask how we’re using AI, but they’re also experimenting themselves. It’s a different dynamic now,” a creative director in South America said.

The report’s cover image

This shift is prompting scrutiny of agency fees, the research found. Some clients are questioning full-price retainers when AI is part of the work. Agencies are responding by reframing their value proposition, in a move away from production towards curation, cultural translation and providing ethical guidance.

“Transparency isn’t a disclaimer. It’s a leadership move,” the report declares.

With AI compressing timelines and outputs, agencies are under mounting pressure to justify their fees.

“Clients are starting to ask for a review of the fees thinking that AI could do the work of creatives,” a leader in Barcelona is quoted in the report as saying.

The research found some agencies have moved to value-based pricing models, billing for strategy and creative ideas, rather than staff hours. “If you’re still charging by the hour, you’re behind,” the report warned.

Despite the rise of automation, the report reinforced the need for, and value of human craft.

“AI can generate a hundred options, but it doesn’t know which one to choose. That’s still us,” a design director in Asia said.

The creative edge, the report argues, remains in human taste, emotional nuance and narrative instinct: qualities machines cannot currently replicate.

“Craft isn’t just what we do, it’s how we think.”

The research found that across the globe, creative roles are evolving. While some traditional jobs may be under threat, new hybrid roles like AI-literate art directors and prompt engineers are emerging. The report found strong demand for re-skilling, with participants asking for structured training, real-world case studies and access to advanced tools.

“The most exciting people on our team right now are those asking better questions, not just making better outputs,” an agency managing partner in South Asia said.

The report encourages agencies to change team structures, position experienced talent as mentors, and equip juniors to use AI tools without becoming reliant on them.

“AI didn’t unlock creativity. It just exposed the difference between that and mediocrity,” said Brainstrust founder Ben Cooper, who co-authored the research, with excerpts presented at last week’s humAIn conference.

The AI & Creativity 2025 report is framed as a wake-up call for the industry.

“This isn’t a time to wait and see. This is a time to shape the shift,” the report concludes.

The seven key shifts

  1. Trust in the machine
  2. The economics of imagination
  3. Evolving partnerships
  4. Citizen impact
  5. Code meets craft
  6. Human capital reimagined
  7. Creativity unchained

Trust in the machine: ethical questions around AI’s role in creative authorship, attribution, and ownership. Agencies must navigate ambiguous legal frameworks, clarify attribution policies, and ensure creative value and originality are protected.

The economics of imagination: how AI is changing pricing models and perceptions of creative value. with faster workflows, agencies must shift from time-based billing to strategic and outcome-driven models to avoid a race to the bottom.

Evolving partnerships: how client-agency dynamics are evolving as clients now have direct access to AI tools. agencies need to redefine their value proposition clearly, emphasising strategic insight, human judgment, and collaboration.

Citizen impact: consumer perceptions of genAI content. Audiences value authenticity and emotional connection over how content is created, meaning agencies must prioritise transparency and quality to maintain trust.

Code meets craft: human creativity and craftsmanship remain crucial differentiators. While AI can generate options, human insight is required to choose wisely, emphasising care, taste, and nuanced decision-making.

Human capital reimagined: identifies AI disruption to talent and hiring practices, highlighting the emergence of new hybrid roles and skillsets. Agencies are urged to invest in ongoing training and elevate experienced creatives as mentors.

Creativity unchained: describes a shift towards experimentation and playful engagement with AI tools. creativity is increasingly seen as about exploration and curation rather than pure execution, encouraging agencies to embrace AI-driven curiosity.

Download the report here.

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