AI reshapes agency economics, but their contracts are still scrambling to catch up

In the age of generative and agentic AI, agencies are barreling toward a software as a service business model. That’s starting to show up in contracts. None of the four agency execs Digiday spoke with, however, say they’re not ready to overhaul their MSAs — at least not yet. Increasingly, agencies are using AI tools to automate more parts of the marketing workflow. They’re also peddling proprietary generative AI tools to woo clients, win new business and compete in the AI arms race. The ripple effects are seen in how accounts are staffed, how work gets produced and the cost structures of that work — all of which are typically listed out in…

This is a curated summary. The full story was reported by Digiday.