DEEP DIVE

Agency (Or Other Partners) Using AI? Here's What You Need to Know

The big picture: Your agencies and partners are diving deep into AI, whether you're ready or not. With 91% of U.S. advertising agencies either using or exploring generative AI, marketers can't afford to stay in the dark about their partners' AI practices. The stakes are higher than ever, as AI capabilities expand and potential risks multiply.

Why This Matters Now

Significant industry concerns persist around legal issues, data protection, and output accuracy. These aren't just theoretical problems – they're business risks that could directly impact your brand. According to recent reports, to reduce risks big brands are asking for more transparency and increasingly adding AI-specific clauses to their agency contracts, with some requiring explicit approval for any AI usage.

Consider these potential scenarios:

• Accuracy: AI-generated content produces incorrect or inappropriate messaging that damages your brand reputation and requires extensive crisis management

• Brand safety: Customer data gets compromised through inadequate AI security protocols, resulting in regulatory violations and damaged customer trust

• Intellectual property: Your agency uses AI-generated content without proper attribution, leading to copyright infringement claims against your brand and costly legal battles

But first, let's be real: some brands might not be prepared for this conversation. You're not alone if you feel overwhelmed. Although major brands and holding companies are at the forefront of these client-agency conversations, it could impact companies of all sizes. This is why we're bringing it to your attention. You can always come back to it later if needed. Just be mindful of the potential risks to assess the right timing. It all depends on the agency scope (the bigger the initiatives the more critical, same with level of investment), and how likely things can go sideways.

Essential Questions to Ask Your Agency (And Partners)

Now that you understand the stakes, you need to have some crucial conversations with your agencies. I've organized these questions into key areas to help you structure these discussions effectively. Think of this as your conversation starter kit – you don't need to ask every single question, but each category represents an important aspect of AI implementation that deserves attention.

I've been fortunate to work with amazing agency partners throughout my career (and still do). I see this as an opportunity for all of us to learn and grow together. While we're all navigating these new AI waters, I'm confident you'll discover not just potential risks but valuable opportunities along the way.

Strategy and Implementation

• AI integration: What is your overall AI strategy and how is it integrated into your services?

• AI council & policies: Do you have an AI council or formal policies in place?

• Training: How do you train staff (including freelancers) on AI usage?

• Tools: Which specific AI tools do you employ in each service?

• Governance: What processes ensure consistent AI implementation across teams?

Human Oversight and Quality Control

• Human oversight: What is your review process for AI-generated outputs?

• Hallucination: What measures are in place to prevent AI hallucinations?

• Intellectual property: How do you manage copyright and intellectual property rights?

• Quality control: What quality control checkpoints exist in your AI workflow?

• Consistency: How do you ensure brand voice consistency in AI-generated content?

Data Protection and Privacy

• Compliance: How do you ensure compliance with privacy regulations?

• Data breaches: What security measures protect against data breaches?

• Client data: How do you use client data in the inputs?

• AI training: Do your AI tools save or learn from client data?

• Legal standards: How do you keep up with updated legal standards?

Performance and Optimizations

• AI effectiveness: What metrics do you use to evaluate AI effectiveness?

• Cost efficiencies: What cost efficiencies have you achieved through AI implementation?

• AI impact: How do you measure AI's impact on campaign performance?

• AI augmentation: How do you compare AI-augmented versus human-led campaign outcomes?

• Case studies: Can you provide case studies showing AI-driven results?

Best Practices for Agency Partnerships

Once you've had these initial conversations, it's time to evolve your existing agency frameworks to address AI-specific needs. Here's a practical approach to help you manage these partnerships effectively and safely. Consider this your playbook for building stronger and more transparent relationships with agency partners.

1. Update Your Contracts

Consider adding or updating specific clauses about:

• Required transparency around AI usage

• Mandatory approval processes for specific use cases

• Clear delineation of liability

• Data protection requirements

• Copyright and ownership guidelines

• Regular reporting requirements

• AI tool usage restrictions

• Quality control standards

2. Establish Regular Reviews

Set up a consistent cadence of check-ins to collaborate, monitor and optimize AI usage. Plan to cover:

• Schedule recurrent updates on AI implementations

• Review performance metrics and case studies

• Assess compliance with agreed-upon protocols

• Share your brand's evolving AI policies and requirements

• Collaborate on testing new AI applications

• Establish clear escalation paths for AI-related concerns

• Create feedback loops for continuous improvement

3. Monitor for Red Flags

Watch for:

• Reluctance to discuss AI processes

• Over-reliance on automation without human oversight

• Unclear data handling practices

• Lack of documented AI policies

• Poor version control in AI-generated content

• Inconsistent quality control measures

• Resistance to transparency requests

Moving Forward

Did I mention that the AI world is evolving rapidly? So… Your agency relationships need to evolve with it. By establishing clear guidelines, maintaining open dialogue, and regularly assessing AI capabilities, you can harness AI's benefits while protecting your brand's interests.

Remember: This isn't about restricting innovation – it's about ensuring AI serves your brand's goals while maintaining ethical standards and brand safety. Start these conversations with your agencies today to build stronger, more transparent partnerships for tomorrow.

PS: I know it's a lot, and that you might not be ready for it now. But I've got your back. Next week we'll cover how to create an AI Policy. Stay tuned.