Navigating the Future: Key trends for Creative and Digital Agencies in 2025
As we begin 2025, here are our insights on the evolving legal landscape and general trends for Creative and Digital Agencies:
AI-Generated Output – Gen AI has become integral to agency operations, from software testing to content creation for digital advertising and marketing campaigns. Despite initial hesitations due to Intellectual Property (IP) rights and accuracy concerns, agencies are increasingly looking at how to balance legal risks, contractually, with internal processes. The wise will continue to watch the AI copyright claims which are on the rise in courts worldwide, along with pending IPO consultations in the UK on data scraping and copyright attribution to strike the right balance. Expect to see more AI tool providers offering Copyright Shields and Copyright Indemnities, and the emergence of AI ‘Attribution Technology’ to fairly compensate rights holders. Smart contract drafting and AI policy development will be essential to navigate these waters legally and fairly.
Personalisation – The demand from consumers for personalisation remains strong. Agencies that can balance data privacy, creativity, and hyper-personalisation will thrive in 2025. With UK Data Laws diverging from EU regulations, it is crucial to address data considerations at the outset of campaigns and projects. All eyes will be on the Data (Use and Access) Bill which is expected to become law in 2025.
Customer Service and Loyalty – Tailored consumer experiences are a key to brand loyalty. In 2025, consumers will increasingly reject sub-par value and service from brands and will expect more for their loyalty and data. Brands that fail to invest in customer service and instead funnel enquiries through ineffective AI bots, under-resourced call centres and poorly designed websites will fall out of favour. Agencies must focus on tailored brand experiences, transparency, and value for consumers, to ensure brands grow in these tough markets.
Value-Based Pricing – As digital marketing budgets prioritise growth, agencies will continue to shift towards value-based pricing. This requires innovative contractual approaches to protect all parties involved but also a focus on deeper, transparent partnerships between clients and agencies.
Consolidation, Collaboration and Efficiency – Strategic consolidation between agencies will be inevitable given the need to drive efficiencies and deliver value when the market is focused on growth. While AI may commoditise agency services, it will also drive business efficiencies; the crux will be how agencies leverage these efficiencies to grow. Agencies which specialse will still need to innovate to remain competitive.
Even if consolidation is not beneficial, more collaboration between agencies around AI, IP and datasets will be increasingly valuable for smaller agencies seeking to scale.
Legal Developments – Agencies must prepare for a portfolio of legal developments.
- The Employment Rights Bill is expected to take effect in 2026, enhancing flexible working rights and addressing zero-hour contracts.
- The forthcoming Equality (Race and Disability) Bill will introduce new equal pay reporting requirements too. Preparing for these changes in 2025 will smooth the transition.
- The impact of the Digital Market Competition and Consumer Act (DMCC) will become more pronounced as it comes into force in April, with the CMA targeting online unfair commercial practices. E-commerce sites will need to watch and incorporate the latest guidance around drip pricing, fake reviews and subscriptions.
- The Data (Use and Access) Bill 2024-25 (DUA Bill) will bring significant changes to digital marketing too, affecting cookie use and AI-driven decision-making. Proactive legal compliance for e-commerce sites is key.
Be Green – The focus on green and sustainability legislation and trends will continue. Agencies working with consumer-facing brands will need to keep a close eye on the Competition and Markets Authority (CMA) guidance. With fines of up to 10% of global turnover, it will require online consumer-facing businesses to step up and validate green credentials. Looking ahead, we anticipate additional legislation focused towards packaging and sustainability, which will trigger those affected to cascade down the impact of this legislation.
Working Smarter – Finally, those agencies that continue to invest in AI and tech training and innovation will get ahead. Those which can incorporate innovation and efficiencies into their service offerings early will be the agencies which drive the greatest value to client brands and essential growth to secure their future for 2025 and beyond.
To support Creative Digital businesses, we have a series of best practice tool-kits and contracts available to make sure you are ahead of these legal changes. These will ensure your contracts and teams are kept up to date for 2025 and beyond. Contact me for more details.