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We’ve been talking about AI on this podcast for years — not just as the next shiny tool, but as the biggest shift agencies will face this decade. Yet most agencies still haven’t done more than dabble. Meanwhile, their competitors (or even their clients) are using AI to move faster, make sharper decisions, and drive results that leave everyone else scrambling to catch up. If you’re still on the sidelines, you’re already behind.

Today’s guest is clear about the game-changing role of AI in the agency world. He argues it’s not just about making your shop more efficient — it’s about driving better client results, delivering faster, deeper insights, and adding to your bottom line.

Agencies that fail to embrace AI risk being outpaced by clients who bring it in-house or by competitors already using it to gain an edge. To stay competitive, you have to take a forward-thinking approach that uses AI to scale operations, increase client value, and keep your best people.

Phil Parrish is the co-founder & President of PrograMetrix, a boutique programmatic advertising agency that also crushes it in paid search and paid social. Celebrating their 10-year anniversary this past April, Phil’s team has stayed nimble, focused, and mighty — helping clients dominate their digital paid media while driving real, measurable results. He’ll discuss his vision on AI, how he’s using it as a multiplier, and why that are not already adapting their processes to include this technology, will be exposed.

In this episode, we’ll discuss:

Navigating pipeline churn anxiety.
Delivering quick wins with AI.
Why agencies that don’t adapt will get exposed.
Focus on the wins, not just the tasks.

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Sponsors and Resources

E2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service.

Betting on Yourself (And Getting Clients to Bet on You Too)

Phil didn’t stumble into agency ownership by accident, but he didn’t overcomplicate it either. He built strong client relationships over the years, recognized the moment when he thought, “I can do what this company does — why not do it for myself?” and took the leap. With clients ready to follow, he launched PrograMetrix and started generating revenue quickly, sidestepping much of the risk that keeps many would-be agency owners stuck.

The takeaway? If you’ve built trust and consistently delivered, clients will follow when you launch your own shop. Relationships and results are your best startup capital.

Navigating Uncertainty Without Panic

Every agency owner hits moments of chaos—those “Are we going under?” nightmares that keep you up at 3 AM. So far, Phil’s journey hasn’t quite hit the “we can’t make payroll” panic, but pipeline uncertainty and client churn anxiety were very real, especially during COVID-19.

Ironically, the pandemic ended up being a huge growth driver. As trade shows and in-person events vanished, clients who were spending six figures on live events had to redeploy budgets digitally. PrograMetrix was perfectly positioned to catch that wave. “You’ve got to have a good business plan, offer strategic value, make smart bets, and stay laser-focused when your back’s against the wall.”

It’s a solid reminder: when chaos hits, the cream rises. The agencies that pivot fast come out stronger.

AI: Beyond Social Posts and Rocket Emojis

Let’s get real: most agencies are looking at AI like it’s a shortcut to crank out social posts and blog content (and yes, that’s part of it). But Phil’s approach is a level above—he’s integrating AI deeply into PrograMetrix’s operations to enhance speed, insights, and performance, not just save a few hours per week.

In his view, agencies that have depended on time as their inventory and work on the basis that the more time they can utilize the more revenue they can drive will struggle unless they modernize operations using AI.

For its part, Phil’s agency is building a proprietary product using a licensed data warehouse, pulling data from all their platforms (The Trade Desk, Meta, Google, TikTok, LinkedIn, etc.), and using AI to run advanced queries and develop unique optimization techniques. The end goal would be to deliver faster, clearer, and more impactful insights that clients can’t get by simply logging into their ad accounts.

The bottom line: If your agency isn’t embedding AI into how you operate and deliver, not just as a tool to “save time,” clients will either bring it in-house or go with an agency that does. The market is moving, and speed and value are non-negotiables if you want to win and retain serious clients.

Delivering Quick Wins and Story-Driven Insights

Mid-market and enterprise clients dropping six to seven figures on ad spend need to feel your authority and your velocity from day one. They need to breathe easier knowing your agency has it handled, and they need to see progress fast, or they’ll be out.

Using AI, Phil’s agency uncovers insights like:

Path to conversion (impressions and touchpoints before a sale)
Channel impact across the funnel
Audience segment insights
Messaging that drives real ROI

They’re not just sending reports but turning complex data into actionable stories for their clients. If you’re still measuring your agency’s success by how much time you can bill rather than how much impact you can deliver, it’s time to rethink your model before your clients rethink you.

Why Agencies That Don’t Adapt Will Get Exposed

Look, AI isn’t going to wipe out agencies. But it will wipe out agencies that are stuck operating like it’s 2015, coasting on outdated processes, and sending the same recycled reports clients can pull themselves.

AI is like the giant scoreboard in baseball, showing every advanced stat in real-time. Agencies that are half-assing delivery can’t hide anymore. If you’re running bad ads, AI will show your client you suck, and you’ll get fired. (Like the agency I just fired.)

AI won’t kill the agency model, but it will expose agencies not using best-of-breed tools to deliver value faster.

AI as a Multiplier, Not a Threat — and Saves Him $200K

Phil is using AI as a force multiplier to:

Deliver faster, clearer insights for clients
Optimize campaigns for even a 2-3% lift that compounds over time

And they’re doing this without having to invest in new talent at the rate they otherwise would have. As Phil says, “if we can skip hiring one or two traders, that’s a $200K swing to the bottom line.” And it’s not because he doesn’t value his team—he’s investing in making his team better. AI helps smart people do better work, get better results, and actually enjoy their jobs.

Clients see more value, your agency scales efficiently, and your team sticks around longer, reducing churn and recruitment costs.

It’s About Buying Wins, Not Just Doing Tasks

If you’ve seen Moneyball, know Billy Beane reinvented baseball by focusing on “getting on base,” not vanity stats. Agencies should think the same way:

What are your “get on base” moves that drive client results?
Are you outcome-driven and problem-solving, or are you a task rabbit waiting to be replaced by AI?

When clients have big challenges, do they come to you first, or are you stuck doing low-value production work? If it’s the latter, it’s a sign to reposition your agency now. If you don’t, you’re writing your own exit letter from the industry.

Make AI Use Mandatory, Not Optional

As an agency leader, it’s time to go all-in on integrating AI across all SOPs, not just as an add-on for the leadership team. Why? Because this tech:

Makes employees more valuable in the marketplace
Makes them happier by removing annoying, low-leverage tasks
Keeps your team aligned with your agency’s growth goals

Before they started using AI prompts to understand how to optimize a campaign or improve performance, their campaign managers were conducting huge Excel exports. Now they can focus on strategy. If you’re the only one using AI in your agency, you’re toast. You need to lead, train, and require your team to use these tools to become outcome-focused problem solvers rather than task executors.

Stop Being Fearful. Start Doing

If you’re feeling fear around AI, that’s normal. But you’ll stay scared if you don’t start using it. Phil’s team didn’t wait for a perfect moment; they’re actively building, testing, and refining AI use across their delivery and ops. The agencies that will win over the next 3-5 years aren’t the ones worrying about AI—they’re the ones using it to solve bigger problems faster for their clients.

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