No longer a dim idea on the horizon, artificial intelligence has become part of everyday life at advertising agencies across the country. More than two-thirds of agency employees report using the technology a few times per week or more, according to a recent survey of ADWEEK readers.
At the same time, advertising jobs aren’t increasing.
Preliminary figures from the Bureau of Labor Statistics show employment at U.S. ad agencies rose slightly in May to 220,100 positions. On a seasonally adjusted basis, however, the number of industry jobs remains 3.5% lower than a high of 228,000 recorded in April 2023.
Several factors have contributed to this lack of growth.
Economic uncertainty related to global trade wars is one. Omnicom’s takeover of rival IPG is another.
“They are looking to be as lean as possible on paper, meaning there is a greater level of scrutiny given to any hire,” said Sasha Martens, president of recruiting firm Sasha the Mensch, about Omnicom’s planned acquisition of IPG.
AI replaces entry-level positions
Another element putting pressure on the decision to bring on more workers is the rise of AI, which agencies are embracing to do a variety of tasks, from copywriting to ad buying. Just over half of social media managers, for instance, say they can’t imagine doing their job without the technology, according to survey results from social media performance platform Hootsuite.
Additional employment statistics suggest AI is hitting entry-level jobs harder than more senior roles.
As Patrick Garvey, founding partner at ad agency We Are Pi, put it: “Now AI hoovers up the grunt work, so agencies are starting to skip the junior rung altogether.”
Examining a sample of nearly 50 U.S. marketing and advertising companies—from ad giants IPG and Omnicom to Publicis agencies Digitas and Starcom—figures from employment data provider Live Data Technologies reveal staff positions have declined more than 10% since January 2022. Manager and director jobs, meanwhile, have remained relatively steady during the same period.
“All the routine tasks once handled by junior creatives, media planners, and account coordinators are increasingly being both automated and outsourced,” said J. Scott Hamilton, president and CEO of Live Data Technologies.
A view of jobs by department offers further insight into changes occurring throughout the industry.
Information technology and business management are the only areas experiencing growth, per Live Data Technologies. Every other team—from engineering to marketing and product—has seen its numbers shrink.
Unlocking the door with AI
In June, WPP chief executive Mark Read stated AI will alter the advertising workforce, eliminating some jobs while creating others.
This shift is already well underway, with AI appearing in job requirements at a growing pace. Indeed, mentions of AI in global job listings for marketing and advertising roles have increased by more than 67% so far in 2025 compared to the same time last year, according to a recent report from software company Autodesk.
“We’ve begun to notice AI skills, training, and program knowledge appearing more in job specs, particularly in project management and operational capacities,” said Helen Kimber, founder of Creative Connections, a talent acquisition firm that works with global ad agencies.
For people looking to enter the ad industry, thinking of AI as an opportunity, rather than an obstacle, could be key to getting doors to open.
“More than once it has been mentioned to me that younger incoming talent is naturally more fluent with AI,” explained Martens from Sasha the Mensch. “Companies are keen to find people who are very comfortable with it.”