SIX-MONTH PULSE REPORT

Agencies in the AI Era 2.0: What Changed

In a short time period, AI got faster, cheaper, and more capable. Meanwhile, the agency business model barely budged. This report, based on a second survey of 174 agencies, tracks what shifted.

Introduction

In late 2025, we surveyed 180 agencies to understand how AI was reshaping their business. The picture that emerged was one of cautious optimism: agencies weren’t collapsing, but they weren’t doubling profits overnight either. They were experimenting, streamlining, and waiting to see where things would land.

So we went back.

In the six months after our initial survey, the technology moved fast. New frontier models launched, AI coding agents went mainstream, and inference costs dropped sharply. So we ran another survey across the same five areas — price cuts, service pricing, revenue impact, staffing, and new revenue streams — to see what changed on the ground.
The results show a market still in motion. More agencies are seeing benefits, but just as many are struggling to measure them.

Six Months Later — TL;DR

Here’s what changed six months after our initial survey:

  • AI discount pressure: Some clients are asking for price reductions due to AI use, but no more than they were six months ago.
  • Pricing strategies: There’s no consensus on what’s the best pricing model in the age of AI. If anything, slightly more agencies are struggling to figure it out.
  • Revenue impact: The majority of agencies are still seeing a positive impact on their revenue, but a growing number can’t estimate it, and fewer are actively working on it.
  • The link between revenue and pricing: Agencies holding their ground on pricing are largely the same ones seeing a revenue boost from AI. This overlap is becoming even more pronounced.
  • Staffing: No wave of layoffs. But anecdotally, hiring is slowing — AI is doing the work that new hires would have done.
  • New revenue streams: Everyone’s still exploring them, but few are seeing real gains.

While a lot changed on the technology side, the agency business model didn’t follow at the same pace. As in our first report, the data tells a story not of a tectonic shift, but of incremental change and cautious experimentation.

There’s no pricing collapse, no mass layoffs, and no AI-powered revenue boom. But things are moving — and some of the patterns we spotted six months ago are now even more visible.

1. Are Agencies Cutting Prices Because of AI?

Short answer: No. 

Six months ago, we found that most agencies anticipated being asked for AI-related discounts, but weren’t experiencing it at scale. That picture is essentially unchanged. Clients haven’t increased the rate of asking for discounts. If anything, the “not yet but we expect it” group grew slightly, suggesting the feared wave of discount requests still hasn’t arrived.

What has changed is the nature of the conversation. AI is creating new dynamics in client relationships that go beyond simple discount requests.

AI has cut both ways for us. One client churned after concluding they could now build what we do themselves using Lovable. That was a direct revenue loss. Another client increased their engagement significantly because AI made it faster and cheaper to ship features, which raised their expectations and cadence. They needed us more frequently to keep up with that pace.

Operations Manager,
17-person design agency

While some clients see AI as a reason to leave, others see it as a reason to lean in. This polarity is more pronounced now than it was six months ago, and it signals a broader renegotiation of what agencies are for.

2. Has the Industry Figured Out How to Adapt the Pricing?

Nope. Still no consensus.

Agencies are split four ways on how AI is affecting their pricing: some are keeping or increasing prices, some are lowering prices to compete, some see little impact, and a growing share are still figuring out the right model. That’s practically the same picture we saw six months ago. If anything, the “still figuring it out” group grew slightly, while fewer say it has little impact at all.

The lack of movement is itself a finding. In a period where AI capabilities advanced significantly, agencies didn’t converge on a pricing response. They’re still experimenting.

Value-based billing continues to look like the preferred direction for agencies that are adjusting. The logic is intuitive: if AI helps you ship faster, charging for time makes less sense. Charging for outcomes makes more.

Some agencies are also getting practical about AI costs showing up on the books.

Day rates of employees decreased due to the workflow automation enabled by AI, and the AI subscription was added as expenses claim.

Planning Assistant,
7-person consultancy

3. Is AI Actually Making Agencies Money?

Yes, but it’s getting harder to prove it.

Most agencies are seeing a positive impact of AI on revenue or profits. That hasn’t changed in six months, but it’s interesting what has changed. There’s been a slight increase in agencies saying they can’t estimate AI’s impact on their revenue, and a decrease in those actively working on it.

What this suggests is that more and more agencies are using AI, but a growing number can’t tell you what it’s actually doing for their bottom line. They know it’s helping (things feel faster, lighter, more efficient, etc.), but the measurable revenue impact remains fuzzy.

Those who can point to results are focused on the same areas: streamlining sales processes (background research, proposal writing), streamlining internal processes (faster onboarding, admin work), streamlining deliverable creation (prototypes, content, strategies), and cutting third-party expenses.

As the cost of doing business continues to rise, AI has become a key lever for maintaining productivity and mitigating increasing costs. This means we are able to deliver the same level of output and maintain margins despite external cost pressures. With vibe coding, we build fully self-contained applications designed to run locally on specific devices without requiring ongoing support or updates.

COO,
27-person creative agency

4. Who’s Winning the AI Pricing Game?

Two groups are diverging, and the gap is getting steeper.

There’s an interesting correlation between AI revenue impact and pricing confidence. Agencies seeing real business results from AI are more likely to keep or increase prices. Those still working on implementation are disproportionately more likely to be stuck figuring out their model.

Six months later, that gap has widened.

Among agencies reporting multiple positive AI situations, 52% are now keeping or increasing prices with improved margins (up from 47%). Among those still working on implementation, 61% are still figuring out the right model (up from 47%).

The agencies that figured out how to use AI for real business impact are getting bolder with their pricing. The ones still trying to get there are increasingly stuck. This isn’t surprising, but it is important. It suggests that the window for “we’re still experimenting” is narrowing. The early movers aren’t waiting around.

5. Is AI Replacing Agency Staff?

Not really. But it’s changing who gets hired.

The vast majority of agencies have no plans to reduce staff because of AI. Only 3% report significant reductions. That picture is essentially unchanged from six months ago, and the mass-layoff narrative remains unsupported by the data.

The open-ended responses provide more context, though. Agencies aren’t laying people off, but they are hiring differently. AI is doing the work that a new junior hire or a contractor would have done. The headcount doesn’t shrink; it just doesn’t grow the way it would have.

Custom built AI agents for clients online assets analysis, preparing reports, setting up employee training plans, paralegal work done entirely in-house, a lot of admin work now done via automations or AI functionalities.

Owner,
11-person marketing agency

6. Is Everyone Chasing AI Revenue?

Pretty much.

Nearly every agency is exploring AI-related revenue streams. A third have launched something, though for most the impact is still small. The rest are still in exploration mode — and only a handful aren’t looking at all. That picture hasn’t changed much in six months: a few more agencies moved from “exploring” to “doing something,” but the something isn’t transformative yet.

The exceptions stand out, though. A few agencies that have launched AI-related services are seeing real demand.

We’ve launched new AI solutions and AI consulting services. Now our most requested offerings for both existing and new clients.

CTO,
35-person digital and consultancy agency

And some are finding new work from the other direction — clients who tried to go it alone with AI and realized they still needed agency expertise.

We gained a new client who fully vibe coded a web application and had to ask us for help to make it work and information security compliant.

Head of Operations,
34-person IT services company

Updating task statuses based on comments and activity, surfacing action points, sending reminders for time logging and task completion, summarizing project health, generating project or budget proposals from documents or rules.

A Slow Change and a Growing Divide

Six months is both a long time and no time in the AI era. In that window, we got new models, new tools, new capabilities, and an entire new category of AI agents entering the mainstream. On the agency side? The needle moved, but not by much.

There is no doubt that AI is changing the agency business, but it’s changing it slowly, unevenly, and in ways that are harder to measure than the hype suggests. The clearest takeaway is the growing divide. Agencies that have found real value in AI are pulling ahead — more confident in their pricing, more settled in their operations. Those still experimenting aren’t falling apart, but they’re running out of time to figure it out while the leaders keep moving.

Want the full picture?

Download the original Agencies in the AI Era report for the full September 2025 findings, deeper analysis, and the story behind the numbers.

Want the full picture?

Download the original Agencies in the AI Era report for the full September 2025 findings, deeper analysis, and the story behind the numbers.

Methodology

This is the second wave of Productive’s ongoing research into AI’s impact on agencies, following the initial survey conducted in September 2025.

Survey: 174 agencies and consultancies who use Productive, surveyed March 17–31, 2026. 12 questions: seven on AI’s business impact, five demographic. The final open-ended question drew 160 written responses.

Respondents: Majority from Europe (54%), followed by Asia-Pacific (21%) and the United States (13%). Most were executive leaders (61%). The sample skews toward digitally mature, process-oriented agencies, typically in the 20–50 employee range.

Analysis: Quantitative data analyzed using descriptive and inferential statistical procedures. All highlighted differences were statistically significant (p < .05). Open-ended responses were thematically analyzed, with selected quotes (anonymized) included throughout for context.

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