The old model for digital agencies is being disrupted by AI, leading to commoditization and margin pressure. To survive, agencies must focus on deep market understanding, strategic positioning, and creative concepts that require genuine expertise rather than competing on commoditized services like basic content creation. They should lead with AI's capabilities transparently, rethink pricing models to align incentives with client success, and rebuild their talent pipeline by training the next generation of strategists in an AI-enabled world.
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