Agencies in the Age of AI: The ‘Make or Buy’ Dilemma

Global agency networks are facing a strategic crossroads. The rise of AI and automation has not only reshaped the creative process but also forced a critical question to the forefront: Should agencies build their own technology, or buy from best-in-class Independent Software Vendors (ISVs)?

This “make or buy” dilemma isn't new – but AI has drastically raised the stakes. As automation transforms workflows and disrupts traditional business models, agencies must choose between investing in their own tech stack or aligning with specialist partners. And in 2025, this choice is no longer optional – it’s existential.

As Patrick Garvey, co-founder of the independent agency We Are Pi, observes about the massive incursion of AI into agency work: “It’s not the death of agencies. It’s the death of outdated agency models.”

AI Disrupts the Revenue Model – and the Technology Playbook

With AI now able to generate copy, visuals, and even code, the value proposition of agency services is under pressure. Clients know what technology can do – and what they can now do themselves.

Automated tools can churn out hundreds of ad variants, localized assets, and layouts in seconds.

While AI may still struggle with brand nuance, compliance, and quality control, the acceleration is undeniable. Similarly, generative AI is being leveraged in early-stage concepting, idea generation, and even campaign narratives.

This automation wave undermines one of the key arguments agencies previously made for in-house software development: differentiation. But differentiation at what cost? Many agencies underestimate the expense and complexity of building sustainable MarTech. And often, the result is fragile, siloed tech that lags behind best-of-breed platforms.

Add to that the rise of no-code tools and AI-assisted development, and the rationale for building internal tools erodes even further. What once required an in-house dev team can now be prototyped by a client-side marketer in a weekend.

In short, for global agencies operating across dozens of markets, the cost of maintaining custom-built tech is becoming hard to justify.

The Case for Buying: A Renewed Focus on Differentiation

As agency holding groups rationalize their global operations, the imperative to streamline technology decisions grows stronger. Leaders are realizing that building software is not the same as delivering expertise. It requires a different skillset, investment model, and cultural mindset.

Companies that partner with external providers to access technological capabilities are more likely to accelerate innovation and reduce risk. For agencies, this means leaning on ISVs who are laser-focused on solving complex tech challenges, while they redirect internal talent toward creativity, strategy, and client service – their true areas of differentiation.

Moreover, working with ISVs offers scalability, faster time-to-value, and influence over future roadmaps. Instead of competing with tech companies, agencies can co-create with them.

As Ward de Langhe, CPO at CHILI publish notes, “Agency leaders are increasingly recognizing that agility in tech partnerships is more valuable than ownership of tech IP.”

Why Now? Why It Matters

The need to evolve is urgent. Agency clients need innovative, multichannel brand experiences at scale powered by robust tech stacks. They need this now, and they won’t wait for agencies to catch up.

Agency CTOs and CIOs are under pressure to consolidate platforms, improve speed-to-market, and reduce operational costs – all while incorporating next-gen creative approaches And with GenAI rapidly rewriting the rules of content production, the window to future-proof the agency tech stack is narrowing.

Choosing to buy best-in-class solutions – rather than building them in-house– frees agencies to focus on what they do best: telling compelling stories, creating emotional impact, and driving measurable business outcomes. In a landscape where technology evolves faster than ever, partnering with the right platforms delivers a significant strategic edge.

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And this is also where great agencies thrive. Their unique blend of brand insight, hands-on experience with emerging technologies, and a forward-thinking creative mindset enables them to shape creative innovation – transforming their clients’ goals into high-performing campaigns at any scale.

Conclusion: Build the Ideas, Not the Infrastructure

The age of AI is reshaping the very foundations of how agencies operate. Global agencies must decide where they can truly lead, and where they should partner.

The smartest agencies are already shifting from builders to integrators – creating value not through proprietary tech, but through how they use the best available tools. The “make or buy” decision is about focus, agility, and staying ahead in a landscape defined by relentless change.

In short: build the ideas. Buy the infrastructure.

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