AI Forces Advertising Agencies to Rethink Creativity or Risk Obsolescence

The advertising industry is facing a major shift as AI reshapes how agencies operate. Eugene Cheong, speaking at Goafest 2026, argued that traditional growth models—bigger, faster, more optimised—are no longer enough. Instead, he proposed a new approach: agencies must focus on what machines cannot replicate.

Cheong warned that the bulk of routine work, once the backbone of agency revenue, is disappearing. Automation is stripping away repetitive tasks, leaving only the most creative and strategic work as the true measure of value.

For decades, agencies relied on a pyramid structure. At the top sat award-winning campaigns—just 10% of their output. Another 20% delivered culturally relevant work, while the remaining 70% came from execution-heavy tasks. That 70% is now under threat as AI speeds up production and eliminates predictable labour.

Cheong described the future agency as a 'big little agency'—large enough to deliver results but small enough to stay agile. He stressed that creativity thrives on human traits: curiosity, playfulness, idealism, and courage. These are not just personal qualities but disciplined practices that protect original thinking from being diluted by automation. Bureaucracy, he added, poses one of the biggest risks to creativity. Large systems often water down bold ideas, making safe choices the default. Average agencies, which depend on routine work, will struggle first as AI takes over tasks that once provided stability. The real value, Cheong argued, now lies in the top layer—work that demands original thought, strategic imagination, and creative judgement. These are the areas machines cannot easily enter, making them the future battleground for agency success.

Cheong’s vision challenges agencies to rethink their priorities. The shift means fewer resources will go toward execution and more toward high-value creativity. Those that adapt by staying lean, hungry, and deeply creative will survive—while others risk being left behind by the pace of automation.