The marketing industry has always evolved at the speed of culture, but with generative AI now transforming everything from copywriting to campaign planning, Malaysian agencies are facing a watershed moment.
The old model where headcounts scaled with billable hours is buckling under pressure.
Yet within this disruption lies an extraordinary opportunity: to go upstream.
Andreas Moelmann, a noted marketing consultant, preaches that the agency business model of the future isn’t about competing with AI, but transcending it.
Agencies must evolve from mere execution engines into strategic creative consultancies.
In Malaysia, this isn’t just possible—it’s imperative.
The Execution Trap
Let’s be honest: many local agencies are still hooked on volume-based work.
Content factories.
Social media retainers.
SEO-optimised posts churned out weekly.
And now?
AI does much of this faster, cheaper, and in many cases, better.
It’s not that creative execution is obsolete—it’s just no longer the differentiator.
In this new era, clients aren’t looking for more content.
They’re searching for meaningful advantage.
Something AI alone cannot create: insightful strategy, culturally rooted ideas, and deep brand understanding.
The kind that doesn’t come from a prompt but from experience, empathy, and a Malaysian lens.
From Hands to Head and Heart
To survive and thrive, Malaysian agencies must rise higher in the value chain—from hands to head and heart.
This means moving upstream to influence the very core of business and brand decisions.
Strategy. Innovation. Consumer anthropology. Cultural foresight.
These are the new battlegrounds.
This is where AI hits a ceiling because while it can remix the past, it cannot dream the future.
Take for example, the recent repositioning work by Entropia’s former leadership (now under Accenture Song) or Fishermen Integrated’s work on emotionally resonant storytelling for local brands.
They weren’t selling videos.
They were selling business transformation through brand storytelling.
That’s the sweet spot.
Reinventing the Agency Identity
Malaysian agencies must reframe their identity not as ad-makers, but as brand consultants, culture interpreters, and growth architects.
This isn’t mere semantics.
It changes how we hire, pitch, and price.
It means building hybrid teams: data analysts next to strategists, anthropologists next to creatives.
It means charging for thinking, not just output.
It means being the partner in the boardroom—not just the vendor in the marketing department.
Agencies like Lion & Lion are already taking steps by embedding digital consulting into their creative processes.
Meanwhile, niche players like C27 and FOREFRONT are leaning into upstream roles by shaping brand behaviours, not just campaigns.
Embracing AI But Owning the Narrative
AI isn’t the enemy.
It’s the assistant.
Agencies that thrive will be the ones who master the machine but don’t become it.
The true value lies in interpretation.
While AI can generate options, it cannot choose the right one based on market nuance, cultural tension, or lived local truths.
For instance, would ChatGPT have understood how to navigate the sensitivities of a Raya campaign in Kelantan vs Kuala Lumpur?
Probably not.
AI can write scripts.
It cannot craft soul.
Thriving in the Post-AI Age: A Playbook for Malaysian Agencies
Here’s what going upstream might look like in the Malaysian context:
Elevate the Brief – Don’t just take briefs; interrogate them. Reframe the problem. Challenge assumptions. Help the client ask better questions.
Invest in Strategy – Build robust planning units. Train strategists in design thinking, behavioural science, and cultural analysis.
Curate, Don’t Compete with AI – Use AI to accelerate, not replace. Humanise AI output through local insight and emotional intelligence.
Monetise Intellectual Capital – Introduce consulting fees, IP-led solutions, and modular brand toolkits. Move from hours to outcomes.
Champion Cultural Fluency – Build teams that mirror Malaysia’s multicultural complexity. Become the interpreters of cultural nuance.
Lead in Ethical Creativity – As AI raises ethical questions (deepfakes, bias, misinformation), agencies must lead in responsible creativity.
The New Creative Courage
This isn’t about AI-proofing our industry.
It’s about future-proofing our value.
Malaysian agencies have always been resilient, often punching above their weight in APAC.
But now is the time to be bold, not just busy.
To be upstream, not underwater.
Let’s not mourn the death of the old agency model.
Let’s celebrate the birth of a new one.
One where creativity is not commoditised but consulted.
One where the best ideas aren’t just executed—they’re born from insight, steeped in purpose, and delivered with courage.
In the post-AI age, the agency that goes upstream wins.
