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Lars Voedisch: AI Broke the Old Agency Model for Good: What the Global Communications Industry Must Do Next

Lars Voedisch: AI Broke the Old Agency Model for Good: What the Global Communications Industry Must Do Next

Article by Lars Voedisch, Founder of PRecious Communications

A recent Financial Times report signaled a decisive shift in the professional services landscape. Leading consulting firms have begun freezing starting salaries and reducing graduate hiring because AI is transforming the economic structure of their business. Routine analytical work is automated. Junior-heavy teams are becoming less viable. Specialist knowledge and senior counsel are increasing in value. 

This development is not limited to consulting. It is a clear signal for the global communications and PR industry. AI is changing how agencies operate, how teams create value and how brands expect their partners to perform. The old model that depended on layers of manual work and hours-based efficiency is no longer aligned with the realities of modern communications.

The industry is entering a new phase. Agencies and leaders must adapt quickly.

AI Is Reshaping the Foundations of Communications Work

For many years, communications organisations relied on junior teams to perform research, reporting, drafting and monitoring. These tasks helped agencies scale. They also shaped the traditional pricing and staffing models used across the world. AI has changed this overnight.

AI tools now accelerate data collection, insight generation and first-draft development. What once required large teams can now be done with greater speed and reliability. As a result, agencies must rethink how they structure teams, how they train talent and how they deliver consistent value across borders.

This is not a technological trend. It is a foundational operational shift that affects both agency models and client expectations.

Human Expertise Becomes the Core Value Driver

AI can speed up work, but it cannot replace leadership, judgment or cultural understanding. These capabilities remain essential in strategic communications. Senior strategists, planners, reputation advisors and culturally fluent communicators are now more important than ever.

Their ability to guide decision making, foresee risk, shape narratives and manage stakeholders is something AI cannot replicate. Agencies that place human expertise at the centre and use AI to elevate that expertise will lead the next chapter of the industry.

The Global Imperative: From Noise to Meaningful Signal

Brands operate in increasingly complex environments. Public sentiment shifts quickly. Markets move faster. Information flows without boundaries. AI increases both the volume of available content and the pace at which it spreads.

In this reality, the role of communicators is not to create more noise. It is to create clarity.

Agencies must help organisations identify the signals that matter, understand the dynamics behind them and act with confidence. This requires the integration of AI-enabled insights with senior judgment and local market intelligence.

The future of communications belongs to organisations that can guide leaders through uncertainty with accuracy and foresight.

Brands Need Partners That Can Move Faster and Think Deeper

As AI accelerates execution, brands are raising expectations. They want clearer strategy, faster insights, stronger advisory capability and communication that aligns with business priorities. Traditional processes can no longer deliver these outcomes.

Agencies that modernise their models and embed AI into daily workflows will meet these expectations. They will deliver work that is sharper, more efficient and more aligned to strategic outcomes. Those that stay attached to legacy structures will face increasing pressure.

A New Era for Communications Worldwide

The shift described in the consulting world is a preview of what is happening in communications. AI has not reduced the need for communicators. Instead, it has expanded the importance of strategic counsel, adaptability and ethical leadership.

To remain relevant, agencies and communications leaders must evolve their talent models, technology adoption and advisory capabilities. The industry must champion responsible use of AI while reinforcing the human skills that build trust and create meaningful impact.

The old agency model is gone. A new model based on clarity, expertise, and intelligent technology is emerging. The global communications industry now has the opportunity to redefine its role for the decade ahead.

Author:

Lars Voedisch is the Founder and Group CEO of PRecious Communications and an Executive Committee Member of the WCFA. He advises organisations across Asia on integrated communications, reputation strategy and AI supported transformation. Lars regularly contributes commentary to international media and industry platforms.

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