Reimagining the In-House Agency
For years, in-house agencies (IHAs) have been the holy grail of marketing efficiency. They were faster, cheaper, and closer to the brand than relying on external agencies and partners. But today, as budgets tighten and speed-to-market is measured in days, not months, strategy can feel outdated even before launch. And many companies are rethinking the equation: What belongs in-house? What should be outsourced, or automated? And where does AI fit in?
Market forces from cost-cutting pressures to evolving talent needs are influencing in-house agency structures. At the same time, external factors such as a changing political climate and rapid technological advances mean campaigns must evolve in real time. Generative AI has also transformed how strategy and storytelling come together. And the rise of “vibe marketing,” where campaigns are built around mood, movement, and cultural resonance rather than hard data or demographics, reflects a new creative instinct powered by AI tools.
Even high-profile internal shops aren’t immune to the shift. Liquid Sunshine, the award-winning in-house agency behind Keurig Dr Pepper, was recently dismantled as they chose to move away from their in-house creative model. And while Mark Zuckerberg predicted that AI will eventually take over agency work, the reality today is far from apocalyptic. Instead, it is ushering in an era of nimble decision-making that blends human creativity with AI-driven insight.
From Consolidated to Connected: How AI Is Rewriting the IHA Playbook
For many IHAs, capabilities can lag behind ambition: A 2025 Gartner survey found more than a quarter of CMOs have limited or no AI adoption in their marketing campaigns. That gap is forcing teams to make critical choices about how to build, buy, or borrow the technology they need to stay competitive.
Some brands are building proprietary AI systems: A massive technical and financial lift that demands new governance frameworks and training programs. For example, Adobe leverages the tools created for external partners for in-house work. Second Wave, the IHA for Aimbridge Hospitality, created closed-source, proprietary AI platforms that allow new hotels and projects to autonomously jumpstart brand-building.
Other IHAs are partnering with external agencies that have their own AI infrastructure, a choice that can unlock efficiency but sometimes means ceding a bit of control. U.S. Bank, for example, has developed a hybrid approach, using agency Supergood for heavier lifts, while using their own in-house systems for everyday marketing efforts.
Either way, workflows are being rewritten. The once-clear boundaries between internal and external teams are blurring, requiring tighter communication, shared platforms, and co-created content pipelines. Unilever’s Beauty AI Studio is a perfect example. “We used to send briefs off and get content back. Now it’s this agile, iterative approach,” Selina Sykes, Global VP and Head of Marketing Transformation for Beauty and Wellbeing, told Digiday about how the beauty brand is shifting.
Turning Pressure into Possibility
In-house agencies are at an inflection point. The pressure to do more with less can feel relentless. But it’s also sparking innovation. Constraints are forcing teams to rethink legacy structures, pilot new workflows, and uncover efficiencies that create both creative and budgetary flex.
The first move is clarity. Map how work actually gets done … not how it’s supposed to get done. Identify bottlenecks, overlapping roles, and where technology is underused or skills are lagging. A fresh set of eyes can help: many brands are bringing in consultancies or external auditors to benchmark performance and uncover hidden inefficiencies.
From there, experiment in controlled environments. Pilot hybrid workflows that combine AI-assisted production with human oversight. Start with lower-stakes campaigns to test new processes, clarify ownership, and measure output. The goal isn’t to do everything internally, but to decide what belongs in-house, what can be automated, and what’s best handled by trusted partners.
Upskilling is critical. As creative, marketing, and tech roles continue to converge, AI fluency and cross-functional collaboration are becoming baseline expectations. Teams that invest in training now will be better positioned to lead, not follow, as tools and platforms evolve. Just as important is finding the right partners who complement internal strengths, bring specialized expertise, and can flex as priorities shift.
If projects stall in approvals, campaigns feel repetitive, or AI tools sit idle, those are signs it’s time for your IHA to recalibrate, not rebuild. The strongest IHAs see transformation as a continuous cycle of testing, learning, and scaling what works. Because at this turning point, the real advantage isn’t size or spend. It’s the ability to stay flexible, adapt fast, and turn every constraint into a catalyst for better work.
The Future of IHAs is Human
The next era of in-house work isn’t defined by automation. It’s defined by alignment: between people and platforms, insight and execution, creativity and technology. Because while AI may be able to execute campaigns, it’s people who decide which campaigns matter. Teams are the connective tissue that allow brands to pivot, sense cultural shifts, and build authentic identity in ways only humans can.
Creative Circle helps brands build flexible, future-ready teams that blend human expertise with emerging technology. Whether you’re reimagining your IHA or exploring AI-enhanced workflows, we can help you find the right mix of people, partners, and potential.
About the Author: Anna Davies is a Creative Circle freelancer who specializes in personal finance, investing, fintech, and startups. She has worked with WeWork, Happy Money, and Haven Life —plus Fortune 500 companies such as Goldman Sachs, American Express, Citi, and Chase. Davies has also collaborated and ghostwritten for multiple New York Times bestsellers.
