Robin Forbes, global chief executive of the digital agency R/GA, has criticized the advertising industry's ongoing consolidation efforts, cautioning that the push for cost savings is undermining brand differentiation and leading to a loss of creative talent amid the rise of artificial intelligence (AI). Speaking in the wake of R/GA’s recent independence from the Interpublic Group (IPG), Forbes warned that agency holding companies' dismantling of long-established brands raises questions about their capacity to maintain distinctiveness for clients.

Forbes highlighted a contradiction within the industry, noting that agencies—traditionally tasked with building and sustaining strong client brands—have failed to apply the same principles to their own organizations. This failure, he argued, has left many agency brands vulnerable to consolidation as holding companies prioritize operational efficiencies over brand stewardship.

“There’s a cruel irony,” Forbes said. “Agencies are supposed to be stewards of brands … And when you see what’s going on inside the holding companies, which is the collapsing of brands that have existed for dozens of years, you have to ask why.” He further suggested that this trend reflects poorly on the creative sector’s ability to sustain its core assets.

The consolidation push is also eroding agency culture, Forbes said, leading to a talent exodus at a time when creative personnel are the industry’s most valuable asset. “Talent identifies with a culture and a way of working … When you take all those things away in an effort to consolidate, it’s very natural that talent doesn’t stay,” he remarked.

R/GA completed its management buyout 19 months ago after 23 years as part of IPG, with private equity firm TrueLink Capital backing the move. The agency has long been at the forefront of technological shifts, transitioning from CD-ROMs in the 1980s through the digital boom and now to the emerging AI landscape.

Forbes said AI is already fueling growth across R/GA’s global client base. He described how boards and chief executives increasingly demand clear AI strategies, reflecting a shift beyond mere experimentation. “I can’t think of a client where there’s not some form of mandate where boards and CEOs aren’t asking, what is our AI strategy?” he said.

Despite the focus on AI-driven productivity improvements and cost reductions, Forbes cautioned that these efficiency gains offer limited long-term growth potential. “That efficiency play has diminishing returns—it’s not a growth strategy,” he said. As companies invest heavily in AI, the challenge is to convert these expenditures into measurable commercial outcomes that differentiate them from competitors.

Forbes pointed to a disparity between investment and capability, noting that chief marketing officers (CMOs) allocate an average of 15 percent of their budgets to AI transformation, while just 30 percent of organizations feel ready to fully leverage the technology. He also highlighted the rising influence of AI-powered search tools and virtual agents on consumer behavior, which increases pressure on brands to evolve.

In response, R/GA is assisting clients in developing brand identities that AI systems can interpret, extending traditional brand frameworks to encompass factors such as context and memory. Forbes emphasized the enduring importance of human creativity in an AI-driven environment, warning against conflating artificial intelligence with human insight.

“Don’t mistake artificial intelligence for human wisdom,” he said. He urged businesses, especially in challenging markets like Australia, to balance short-term performance demands with investment in future growth opportunities. “We have to help brands grow, but also to create experiences that are interesting and useful and delightful for humans, otherwise, why are we doing what we’re doing?”