Modern Retail+ Research: Expectations around AI are straining brand-agency relationships
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Modern Retail+ Research: Expectations around AI are straining brand-agency relationships
""A couple of new business pitches have noted the 2026 budget is X [amount], but the 2027 budget is already projected to be X times, plus 50%. The message is, 'we're still going to wait and see, but then the next year - 18, 24 months out - is when [we'll spend].'""
""We've seen that too, and I had never seen that before either. I'm interpreting that as, 'I know the budget for next year [2026] is not exactly what you would expect, but trust us, they're going up when we think things will really settle.'""
In 2026, agency professionals are primarily concerned about reduced client budgets and the impact of AI on their workflows. A survey revealed that 38% of respondents identified these issues as the biggest challenges. Although reduced budgets remain a concern, the percentage of professionals citing it has decreased from 47% in 2025. Some agencies anticipate increased spending in 2027 based on client discussions, indicating a potential recovery in budgets. Notable industry leaders have reported clients projecting larger budgets for the following year.
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