The news: Even as consumer attitudes toward AI in advertising remain mixed, agencies are rapidly expanding their use of AI across the marketing lifecycle.

Across generations, the majority of adults are neutral about brands using AI-generated images, video, or text in marketing: 35% of Gen Z and millennials and 36% of Gen X and older feel this way, per a recent Tinuiti study. Meanwhile, 25% overall, 32% of Gen Z and millennials, and 20% of Gen X and older are mostly positive about the AI trend in marketing.

Still, 28% of consumers overall are mostly negative about AI being used in marketing, a figure that’s higher among older generations (30% for Gen X and older). The findings indicate that balance remains key for agencies that increasingly rely on AI for everything from planning and ideation to execution and optimization.

Zooming out: While Tinuiti’s study shows that some consumers are unaffected by the shift toward AI in advertising, significant resistance remains, especially when AI is used in ad creative.

• More than 30% of consumers across age groups are less likely to choose a brand if they know an ad was AI-generated; 42% of consumers over 65 feel this way.
• Only 12% of US adults are more likely to buy products from brands that they know use AI in advertising, per CivicScience.

The best agency AI use cases: Ad agencies across the board are unanimously implementing AI—but mixed consumer sentiment indicate the need for agencies to be strategic about where and how AI tools surface.

• 91% of senior leaders expect AI to reduce agency headcounts, and 57% have already slowed or paused entry-level hiring, per Sunup. This trend highlights something agencies are getting wrong: While AI can streamline operations, consumer sentiment suggests it can’t replace the human creativity and authenticity that audiences still value.
• AI is best used for behind-the-scenes work. AI offers key advantages like the ability to unlock deeper audience insights and devise more personalized campaign plans. AI agents can also be deployed to manage high-volume customer service tasks, and analyze content for influencer partnerships, among other functions.

How agencies can adapt: As agencies scale AI adoption, consumer sentiment underscores the need for restraint and intentionality—using AI for work behind-the-scenes, but resisting ad creative made entirely with AI.

AI can streamline workflows and unlock efficiencies, but agencies that excel will still rely on human insight to ensure that creative feels authentic, brand-safe, and aligned with audience expectations, especially for skeptical demographics.

Employees increasingly require AI fluency, but core skills like collaboration, adaptability, and communication remain paramount, Adweek notes. Agencies that invest in upskilling their talent over replacing them will be best positioned to leverage AI without alienating consumers.