“On AI the Gap Between Ambition and Action is Widening”
The advertising industry may be feeling the pressure to race ahead with artificial intelligence, with every brief and RFP including some form of AI, but the reality for many clients is that a lack of clear internal policies and untested ethical issues means that marketing’s AI revolution is built on shaky foundations.
A new survey of UK marketers published by Hubspot this week in their 2025 State of AI Marketing Report found that just 36% said that their business actively encourages AI through official company policy and 31% say it’s just ‘somewhat encouraged’. A third of marketers are dealing with restrictive guidance or no guidance at all (20% and 11% respectively). And the biggest blocker to widespread adoption of AI? 53% name data privacy and compliance as a key practical barrier.
That’s not to say that marketers don’t want to use AI. 49% of UK marketers say that they’re ‘eager’ to use AI. Looking ahead, 64% plan to increase AI investment in 2025, 74% say most employees will use some form of AI by 2030, and 69% agree that full company implementation would unlock unprecedented growth.
This tension between enthusiasm and nervousness is something that Cheil UK CEO Chris Camacho is seeing up close. “AI is in every pitch deck, every boardroom, and every strategy session, but the gap between ambition and action is widening. Brands know they need to move, but many are paralysed by uncertainty. Privacy concerns, legal grey areas and internal policy voids are creating a culture of hesitation. And while marketers wait for the perfect playbook to appear, competitors are already experimenting, learning and gaining an edge.
It’s becoming clear that this reticence and uncertainty around AI is one that varies by client sector. Simon Valcarcel is marketing director at Virgin Media O2. Thanks to that company’s tech roots and robust existing data privacy frameworks, Simon says that his team have been able to make progress on AI while adopting appropriate checks and balances. “Privacy and trust is a big topic everyone's talking about, and understandably one that comes with lots of questions. We’re already very accustomed in handling customer data at Virgin Media O2, so data security is intrinsic to how we approach any technology, ensuring that it's being used in the right way and is not personally identifiable. Our approach to AI is the same. We’re embracing it but with the right checks and balances in place; applying appropriate caution while pushing to better serve our customers is embedded in the DNA of how we do business,” he says.
But Simon’s aware that many marketers at other companies are not so fortunate. “However, for some other peers I talk to, AI and data is a big scary thing. 'Where does my data go? How is it being used? Could it expose me personally or the business at large?',” he says. “It's a genuine concern and from my perspective, it stems from businesses not having a core AI strategy that the rest of the business can ladder up to. Virgin Media O2 has a clear AI strategy that sits across the business. We've got a centre of excellence that's borne out of our network engineering teams and technology arm of the business, and really robust governance so that while everyone is empowered to use and explore AI, it's within a clear set of boundaries.
“It's not surprising to me that this [relating to the survey] has come out. I think marketing is often a bit of an island in some businesses, and so the intention of marketing teams wanting to lean into this new technology, which is going to disrupt particularly the marketing industry in various ways, is somewhat tempered by the absence of a clear policy or guardrails therefore prohibiting marketing teams from knowing how fast or hard they can go.”
The knock on effect of this is that agencies are frequently being pulled in two directions by clients who are simultaneously asking for AI powered work and unable to pull the trigger.
One organisation that bewildered marketers are turning to for training and advice is ISBA. Nick Louisson, director of agency services at ISBA, noted that from what he hears from members, it’s not just data privacy and compliance concerns holding marketers back - the legal and ethical grey area around IP and copyright also remains a significant hurdle.
Nick said that ISBA’s own research echoes the findings that support in terms of training and clear policies is patchy.
“Advertisers have made considerable progress creating policies to govern the responsible use of Generative AI. Implementing these policies effectively across their teams and agencies will be an area of focus over the next 1-2+ years,” he said. “While staff training is common, many advertisers report having received no AI skills training. People play a critical role in mitigating the risks and advancing the responsible adoption of Gen AI in advertising. A good first step is understanding your organisation’s strategy and policies for its use. As well as the role you play in advancing its roll out.
“ISBA’s latest research will be released in September and will help the industry think about how we support talent grow their confidence and skills in the responsible adoption of Gen AI.”
Generative AI for content production specifically is still proving to be tricky for clients due to legal uncertainty. That means despite the proliferation of sophisticated tools, for now, there may be less AI in advertising currently than breathless headlines might have us believe.
Richard Glasson is global CEO at Hogarth and he says gen AI is a real sticking point - but as soon as laws and regulations become clearer, marketers, agencies and producers alike will be ready to sprint. Fortunately for his teams, clients he's worked with already have substantial policies in place and a good understanding of the landscape they're navigating.
"The lack of a consistent regulatory framework for the use of AI, in particular generative AI, definitely puts a brake on the speed at which clients are prepared to use this technology wholesale in their work," says Richard. "No one wants to be the next headline, or worse, test case for unethical AI adoption. Our experience is that clients have a sophisticated understanding of the potential issues and pitfalls and generally have internal guidelines that keep them on the right side of the tracks. This will be a fast-moving area, and I am sure that more clarity will emerge which will enable us all to unleash the full power of AI - but for now, taking a measured and considered approach is the only way to go.”
Will Lion, CSO at BBH London says that for now, the focus is on using AI to boost creativity instead. “For all clients as soon as the AI helps create the assets that the public sees there's a big intake of breath because the regulatory framework is not yet clear. Lawsuits await. Right now, we're probably in the equivalent of the lawless Napster period before iTunes and Spotify came in and did digital music all above board. Understandably, no one wants to be caught out. So it's more internal for now and the handbrake to using AI to create assets will get lifted as the regulatory fog clears.”
Production and post companies are also seeing this ambivalence around AI when it comes to creating work. Adrienn Major is founder at POD LDN said “Our experience at POD is that many clients are asking us if something can be done with AI, but often their current internal policies prevent them from using it.”
At POD, they’re getting round this by addressing concerns upfront and before they’ve even won the work. “When we are bidding in this field, we also consider privacy and compliance. For example, we ensure that we have no public server processing at POD, in order to protect our clients’ data and IP. And for talent, we will always check that we have full consent and licensing,” says Adrienn. “We look for GDPR-aligned setups across UK, EU, MENA, and US, and optional, clear, disclaimers for AI use, and it’s important to check for secure, closed environments for testing and prototyping."
Agencies too can find a role in hand holding nervous clients and providing that guidance and support to marketers who are not finding it internally.
“Clients are looking to agencies for guidance and role models,” says Michael Ruby, president and chief creative officer at US agency Park & Battery. “They not only want their agency partners to leverage AI to help drive efficiencies in their work together, but also to explain and demonstrate how we are using AI in our businesses so that they can apply the tech to theirs. That said, they’re right to start with the legal and ethical questions of AI. We strongly suggest understanding what every business’ risks and obligations are as it pertains to AI in general and specifically regarding the technologies it employs. Determine not only what you can but should use AI for, and then find the use cases that have the greatest impact.”
This is also where Cheil is finding opportunities to be front footed with clients. “The truth is, most businesses are not structured to embrace AI at speed. That’s where agencies must step up," says Chris. "We can’t just be sellers of tech solutions, we need to become enablers of safe, smart and responsible AI adoption. That means helping brands define ethical guardrails, launch pilot programmes with purpose, and build confidence through clarity. Inaction is no longer a strategy. It is a risk."
Ultimately, says Chris, as uncertain and nervous as some marketers are, sitting back and hoping AI will go away is the riskiest move of all. “AI will not wait for slow decision-making or internal alignment. It will move forward with or without you. The agencies that win in this era will be the ones who give clients permission to act. Not by promising perfection, but by creating the conditions for bold, calculated progress.”
