Why AI Transparency Is Crucial for Both Agencies and Procurement
Marketing agencies and production companies are using AI. Whether that’s in their ideation and concepting processes, generating assets, helping account managers know their clients more deeply, or a whole host of other applications. It’s no secret – in fact, it’s the talk of the town.
But as artificial intelligence continues to mould this new landscape – influencing creativity and even legal frameworks – there isn’t always complete transparency into just how agencies are using AI on specific projects or with specific clients. This leaves brands and their procurement teams with the question: Are the efficiencies afforded by AI being fairly reflected in pricing and compensation models?
Speaking at the Women In Marketing Procurement Forum 2025, on a panel titled ‘AI & Agency Compensation: Redefining Value in the Age of Automation’, The Charles Group’s CEO and co-founder, Aaron Edwards, addressed exactly this question, attempting to uncover the hidden impact of AI on agency services.
In a room full of women working in marketing procurement, assembled by Christine Moore, a long time industry player and founder of RAUS Global, and Libra Balian, director at AlixPartners, Aaron discussed how AI is altering creative and production workflows, and shared actionable insights into contract clarity and the role of procurement in ensuring agencies pass along AI-driven efficiencies.
Discussing the topic with panelists from the marketing consulting industry, Aaron shared that agencies are leveraging the tools in different capacities, according to their size - and that they are “quite mixed” in how much they share about their AI usage. “When large holding companies talk about AI, it's usually at the enterprise platform level – not necessarily tailored, proprietary algorithms. There's a misconception about how deeply embedded these technologies are right now.”
Above: Aaron on the panel
According to Aaron, where AI is having the most impact right now is in automation for efficiency. “It's less about creative brilliance and more about streamlining processes,” he said. “Think resource management, training, administrative tasks, and operational efficiencies.”
He demonstrated this with a personal example, sharing how The Charles Group’s new project management system is powered by AI to enable rapid reallocation of resources. “If one project slows down, we can instantly pivot resources elsewhere, delivering higher value to clients more quickly.”
Bringing the conversation to the topic at hand, Libra questioned whether procurement teams could strategically find cost savings thanks to AI. Aaron’s answer was clear: “Not yet."
He continued, “In fact, from an agency standpoint, we're often seeing the opposite. Recently, we ran an AI-driven campaign for a national beauty brand. It involved generative AI for animation and backgrounds, and we actually ended up spending five times more time than we would've using traditional methods like motion graphics.”
The irony, he noted, is that generative AI can sometimes increase the workload – and therefore, the cost – for the creatives because of repeated iterations and the subsequent need for “extensive” human oversight, corrections and regenerations.
Aaron advised that procurement teams should instead proactively engage in detailed discussions with their agency partners regarding AI, asking straightforward questions around staffing models, how AI impacts not only hourly rates and production timelines but the type of staff you need on the business. “Agencies may also include costs related to AI under overhead, which might not be obvious without inquiry,” he revealed.
Above: Aaron with Women In Marketing Procurement Forum organisers, Libra Balian (L) and Christine Moore (R)
“It's crucial that procurement teams advocate for explicit disclosures in contracts and Statements of Work about how AI-driven costs are allocated and tracked.
While the industry has seen a lesser focus on the costs included in overhead over the past few years, now these areas will again take the forefront of discussions.
“Also, knowing specifically which technologies are being used and for which tasks allows procurement to benchmark accurately.”
At The Charles Group, Aaron and the team have already begun moving toward a tiered pricing structure which clearly defines the extent of AI usage. The tiers distinguish between projects with purely AI-generated deliverables, hybrid AI-human approaches with safety checks, and fully human-crafted work. “This transparency not only fosters trust but helps both parties recognise exactly what they're paying for.”
However, where Aaron sees the most potential for AI usage at agencies is not in the creative department, instead boldly predicting a “foundational shift” toward automation in finance, operations and legal – areas he sees as ripe for efficiency gains.
“Beyond that, generative AI might disrupt traditional agency business models significantly,” he added. “The rise of advanced tools like those Adobe is piloting currently could reduce the necessity for certain agency services, possibly even making some types of agencies obsolete.”
But for those in procurement, he remained optimistic about how open communication around AI usage will continue to strengthen relationships with agencies going forward. “Procurement must push for open conversations and detailed disclosures on AI use, ensure robust contractual safeguards, and continuously educate themselves on emerging AI capabilities,” he said. “Partnering closely with agencies in transparent conversations is crucial, creating mutual benefit rather than suspicion.”
Libra agreed, “At the minimum, contracts need to stipulate that the brand reserves the right to audit the agency’s use of AI tools, including model sources, inputs, and review processes, on a quarterly basis.”
As AI reshapes the agency landscape, transparency isn’t just a nice-to-have — it’s a business imperative. For procurement and agencies alike, honest dialogue and contractual clarity will be the foundation of trust, value, and future-ready partnerships.
