Strategy, Structure and AI: The Future of Communications Consultancies

This week, Hanson Search hosted a roundtable breakfast at The Ivy Club, bringing together Managing Directors from leading communications consultancies to discuss the future of the industry. It was the second session in our leadership-breakfast series, this time exploring the major forces reshaping the sector — from rapid technological change to evolving talent expectations and shifting client demands.

Consultancy model at a crossroads

There is no doubt that the communications consultancy model is undergoing profound change. Agencies now face a clear choice: evolve into strategic partners, or risk clinging to structures that no longer reflect market realities.

It might have been down to the sun shining, the extra strong coffee or the croissants on offer, but it was a positive crowd! There was optimism about growth, with several leaders predicting that within five years, agencies could hold more influence in the boardroom than ever before. Yet the conversation also underscored the rising premium on trust and reputation. In a landscape defined by misinformation, fake news, AI adoption and volatile media ecosystems, the agencies that succeed will be those that can blend human judgement and creativity with data-driven insight — and uphold trust at every turn.

At the same time, the rise of digital tools and automation is prompting clients to reassess value. When technology promises faster or cheaper results, agencies must articulate not just what they do, but why it matters.

Technology’s impact on pricing and client relationships

A major theme was the rapid adoption of AI across larger agencies – many of which have already embedded it deeply into workflows, content production, strategic planning and performance KPIs! However, with greater efficiency comes a pricing challenge. As agencies streamline delivery, clients are increasingly questioning fees. While technology can improve margins, it also forces agencies to balance the ongoing cost of advanced tools with the need to remain profitable. There was also significant debate around the shift from time-based billing to value-based pricing. While value models can work for clear deliverables, advisory services – the heart of most consultancies – remain harder to quantify, meaning hourly rates continue to underpin many client relationships.

The future agency structure

As AI reshapes the workload, agencies are rethinking their talent structures. Tasks once handled by mid-junior teams are now increasingly automated, raising questions about the future of these roles. Some leaders believe traditional mid-level positions are becoming outdated; others argue they are still crucial for quality control and for ensuring AI-generated work meets professional standards.

This evolution points towards an emerging hourglass model:

• a smaller, highly strategic senior team at the top,
• a thinner middle layer, and
• a tech-confident, AI-savvy junior workforce at the base.

Sustaining the middle – Account Directors and Senior Account Managers – is likely to be one of the biggest challenges ahead. These roles translate strategy into delivery and keep client relationships on track. There is also growing demand for generalists: Account Executives able to work across consumer, social, corporate and influencer disciplines. These multi-skilled communicators will be key to offering fully integrated solutions.

Bridging the talent and skills gap

The conversation also highlighted a widening gap between the technical capabilities junior staff bring and the human skills required for leadership. Many young professionals excel at technology but lack critical thinking, emotional intelligence and relationship-building. Some agencies are increasing in-office days to help develop these softer skills. However, there are long-term risks: if the industry over-prioritises tech-savvy juniors without cultivating media relationships, client rapport and storytelling judgement, the next generation of leaders may struggle.

New avenues to demonstrate value

Despite the disruption, agencies are discovering new ways to differentiate. One promising area is Generative Engine Optimisation (GEO) – optimising content to perform in AI-driven search environments. This not only strengthens client visibility but allows agencies to access larger marketing budgets. Leaders also discussed linking reputation more clearly to commercial outcomes, identifying drivers of purchasing decisions and helping corporate communications teams secure a greater share of wider marketing spend. Agencies that position themselves as trusted advisors – offering insight, foresight and strategic challenge – will hold a competitive edge.

Looking ahead

The outlook remains cautiously optimistic. The industry has weathered significant turbulence in recent years, yet there is a growing sense that communications consultancies are poised to emerge stronger…so long as they continue to evolve with shifting client expectations, changing talent demands and rapid technological transformation.

As someone who has sat on both sides of the table – first as a communications consultant and now as a headhunter within the industry – I’ll be watching the next chapter unfold with genuine interest and anticipation!

Katie Simpson is Global Head of Corporate Affairs, working at the senior end of the Corporate Affairs and Sustainability market across both agency and in-house positions.

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