How AI, Budget Pressures and Purpose Are Shaping the Future of Advertising

By R. Larsson, Advertising Week

The world of advertising is undergoing a seismic shift as creativity intersects with advancing technology, evolving consumer expectations, and heightened societal demands. AI tools and automation are no longer just productivity boosters—they’re redefining how ideas are conceived, scaled, and delivered. At the same time, tighter budgets and a crowded digital landscape are compelling agencies and brands to rethink traditional creative strategies, finding innovation in constraint.

Beyond the mechanics of creativity, purpose and impact have taken center stage in shaping campaigns, as businesses are expected to align their messaging with environmental and social responsibility. This evolution raises a pivotal question: how can advertisers balance automation with artistry, navigate resource challenges, and ensure their work resonates with a conscious audience? Exploring these trends offers insight into how creativity is being both challenged and elevated in today’s advertising landscape.

Mike Ellery, Chief Creative Officer, Sparks

Creativity in experiential marketing is undergoing significant transformation, with AI tools and automation enhancing rather than replacing human ingenuity. These technologies are streamlining processes and ideation, with AI-powered analytics providing deeper insights into consumer behavior, enabling more targeted and effective campaigns. This means that marketers are now able to focus on crafting more immersive and personalized experiences that can cut through digital saturation on a budget. Budget and digital fatigue are certainly two of the biggest barriers marketers are set to face in 2025.

Marketers are leveraging emerging technologies like XR, AR and VR to create memorable, cost-effective experiences that transcend physical limitations. The emphasis is shifting towards quality over quantity, with brands focusing on creating authentic, emotionally resonant content that cuts through the noise.

Purpose-driven marketing is also becoming increasingly crucial. Consumers, particularly younger generations, expect brands to demonstrate genuine commitment to social and environmental causes. Successful campaigns in 2025 will seamlessly integrate sustainability and social responsibility into their core messaging. This shift goes beyond mere lip service; brands are expected to take tangible actions and transparently communicate their impact.

The future of marketing lies in striking a balance between technological innovation and human creativity, all while addressing pressing global issues and consumer values.

Brendán Murphy, Senior Partner, Global Executive Creative Director, Lippincott

“Religion is giving people a reason to stop thinking,” quoted American philosopher Daniel Dennett. Substitute religion for technology and he could well define the creative world today. The greatest threat to the creative profession is not AI or social media, but in our complicity and complacency.

Because of technology, from Dublin to New York and beyond—writers, composers, designers, directors—we’re all drinking from the same inspirational troughs. We don’t seek inspiration, inspiration finds us. Discovery is less serendipity, but an algorithm programmed unique to you and millions of others like you…globally. We’ve ceded our measure of creativity to anonymous comments, thumbs-ups, clicks, and awards.

We mustn’t stop thinking for ourselves. AI never worked on a building site in 100 degrees, felt the grip of a newborn’s hand, ran in the summer Kansas rain. AI may speed a creative process, might generate a one-of-a-kind diamond, but let’s not lose sight of the fact that its product is also a sausage, made from the fragments of many lives, used without purpose or consent.

Fura Johannesdottir, Global Chief Creative Officer, Interbrand

The creative industry has been stuck in the status quo for a while, which is why we are seeing less budgets come our way. But AI is the disruption we need to rethink and redefine what we do. It’s an opportunity to regain our edge, challenge our clients more, and inspire them to do something exciting that sets their brand apart.

Creative tools are already changing, giving us new superpowers to think and make things in ways we’ve never done before. Automation will help do the labour-intensive work, freeing up time and our creative minds to focus on what clients need – fresh, innovative ideas that reposition their brands and open up new revenue streams. And these are ideas only the human mind can create.

This is going to be an interesting era for bold creative thinkers and makers, with a focus on how brands can better connect with consumers, embrace AI to change mediums and rethink interaction models. Design will change, take on new dimensions and in some cases become more invisible, as certain brand touchpoints such as websites and ecommerce shift towards automation, and the interactions we have with brands feel seamlessly integrated into physical spaces.

Al Mackie, Chief Creative Officer, RAPP

Creativity in advertising is evolving rapidly, driven by technology and shifting societal values. AI tools and automation are transforming storytelling, enabling hyper-personalized content and predictive insights. However, the human touch remains essential for crafting emotionally resonant campaigns. AI should be seen as a collaborator that enhances ideas, not a replacement for creativity.

Today’s challenges like tighter budgets, shorter timelines, and an oversaturated digital landscape are fuelling innovation. Constraints often spark resourcefulness, pushing us to develop immersive strategies and interactive storytelling to captivate audiences.

Purpose-driven advertising is also gaining prominence, as consumers demand authenticity and social impact. I think just under half of Cannes Lions winners with social as a key element built their campaigns on a solid purpose, reflecting a mainstream shift toward purpose-driven marketing.

However, some say that ‘purpose’ has lately turned into one of the most excessively used marketing jargon terms, and that brands should learn to behave in a ‘post-purpose’ market. Authenticity is critical and superficial efforts can backfire. This means understanding and aligning with the evolving values of your target audience must become a key measure of success.

The future of advertising lies in embracing technology without losing the human element, finding creativity within constraints, and combining precision and empathy. By adapting to these forces, I believe we can still create standout campaigns that inspire, resonate, and make a meaningful difference. Creativity thrives when it evolves, and the next era of advertising will be defined by those bold enough to innovate and lead with impact.

Tags: AI