The news: Content demands are growing faster than budgets, pushing marketers toward AI as a way to keep up. Even as automation increases, ad agencies remain crucial partners for executing and scaling campaigns.

• Two-thirds (67%) of global employees working in marketing and communications use AI for content creation frequently or all the time, per 10Fold’s AI-First, Buyer-Ready report.
• That surge in AI adoption is accompanied by ambitious output goals: 91% plan to increase their content output this year, and nearly half (46%) expect to produce three to five times more than before.

A mismatch between ambition and funding could be making AI even more essential, as growth in workload isn’t matched by resources: Three-quarters of marketers saw budget increases of less than 10%, and only 14% saw higher amounts.

Where it’s going: AI isn’t just for writing copy anymore, per 10Fold—its use now extends across the full campaign lifecycle, helping marketers stretch limited budgets further.

• More than half (59%) are using it for planning, optimization, and targeting, ensuring campaigns have more precise strategies.
• 58% apply AI to analytics and business intelligence, making it easier to refine tactics in real time without heavy resource investments.

Yes, but: Even with AI’s ability to help marketers scale and speed production, it can’t replace the full creative and strategic process. Thirty-nine percent of marketers worry about losing voice and quality, showing that while AI assists with volume, it can’t yet manage campaigns end-to-end.

That’s why marketers still rely on agencies to fill crucial gaps.

• 36% of marketers still turn to agencies for content planning, bringing in strategic oversight that AI tools alone can’t provide.
• 62% rely on agencies for AI-enabled paid media, using their expertise to manage complex targeting.
• Half lean on agency partners for generative engine optimization (GEO) and AI content distribution to navigate evolving search algorithms and ensure AI content drives discoverability.

However, ad agencies still face pressure as full-service AI campaign creation suites, like Meta’s, emerge. This makes it critical for agencies to emphasize the importance of human-driven campaigns and offer personalized services that AI can’t replicate at scale.

Our take: The future of content marketing isn’t AI versus agencies—it’s a combination of both. Hybrid models that pair in-house human and AI-powered creation with agencies’ expertise in strategy, distribution, and optimization can help maximize budgets, maintain brand voice, and keep up output as demand rises.