CMOs face risks locking brands into agency AI platforms: Gartner

"Half of agencies' proprietary AI platforms will either wind down or become obsolete by 2029, researcher Gartner predicts. That's because agency-built offerings need to contend with the rise of open-source AI platforms developed by what are known as hyperscalers the Googles and Amazons of the world that can service functions beyond marketing, according to Gartner."

"Open-source platforms are expected by Gartner to support more than 75% of enterprise AI deployments by 2028, gaining traction for their level of customization and favorable cost compared to proprietary platforms. I don't hear [agencies] talking about those platforms, whether it's [WPP] Open or Omni or anybody else, being an enterprise-wide AI platform."

"While many marketing decision-makers have been early adopters of AI for tasks like content creation, chief information officers and related roles will more likely make the final call on what AI tools brands choose to adopt across the enterprise, according to Wilson. Essentially, we believe that at an enterprise-wide level, the CIO is going to own that enterprise AI strategy."

Advertising agencies are undergoing major restructuring and acquisitions to prepare for AI-driven transformation, yet analysts question the viability of these investments. Gartner predicts that 50% of agency-built proprietary AI platforms will fail or become obsolete by 2029. Open-source platforms from hyperscalers like Google and Amazon are expected to support over 75% of enterprise AI deployments by 2028, offering superior customization and cost advantages. Agencies focus narrowly on marketing and advertising applications rather than enterprise-wide solutions. Additionally, CMOs' influence over AI adoption decisions is diminishing as CIOs gain control over enterprise-wide AI strategy selection, reducing agencies' leverage in client relationships.

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