While overall agency employment has remained relatively flat over the past few years, we’re seeing something different in entry-level hiring. The percentage of staff level jobs at US ad agencies is down 10% since 2022. In addition, the percentage of workers at agencies aged 20-24 has dropped from just over 10% from a few years ago to a bit more than 6% today.
Consolidation and margin pressures account for some of this. However, there is a sentiment that the allure of the efficiencies AI can deliver is leading to a significant slowdown — if not a reduction — or a halt to hiring for junior-level jobs.
A recent white paper produced by DBC and the 4As shows that, beyond the numbers, what agencies are most concerned about is the erosion of the apprenticeship model, which has long sustained the industry and helped prepare the next generation of leaders.
The challenge is two-fold: fewer junior-level employees, reducing the pool of potential leaders, and the erosion of systems to develop them.
The rush to take advantage of the optimization that AI can provide has had the byproduct of eliminating the developmental work that helped new hires learn the business. AI is changing workflows, but insufficient attention has been given to how to adjust training systems to accommodate this.
Many agencies feel that AI has led to junior-level hires being viewed as cost centers rather than as what they are – a strategic investment in future capability.
In response, agencies now are reconsidering exactly what junior hires should do, what their job should be and what skills will be needed moving forward.
What agencies want from junior-level hires
In interviews, agencies identified that they want junior employees who can connect disciplines, synthesize information and solve business problems – not just execute tasks. The role most commonly identified was that of a “horizontal integrator.” This means they want employees who can move across strategy, data, creative, media and technology. While AI proficiency matters, what is valued more today is critical thinking, communication, judgment and curiosity.
Agencies are taking concerted steps to reframe AI as a development tool; not just a labor reduction tool. They are investing in AI literacy because they are finding that graduates are not necessarily AI proficient, and, more importantly, are putting in place structured, ongoing mentoring and continuous learning programs while being clear about career frameworks.
In fact, some agencies are increasing junior-level hires in keeping with their view that human judgment, curiosity and strategic thinking will become more valuable in an AI agency environment.
The skills most sought by these agencies from new hires are critical thinking and judgment. They seek individuals who can communicate and collaborate as work becomes increasingly cross-functional and client-facing. And they want adaptability and a drive to self-learn to manage tools, workflows and client expectations that are rapidly changing.
Going forward, junior-level hires, agencies say, will be hybrid thinkers who are AI literate, but also analytically fluent, creatively curious and commercially aware. They will be expected to navigate ambiguity, connect ideas across disciplines and translate complexity into actionable business solutions. Most importantly, they will combine technical fluency with human judgment because clients still will need trusted advisors, not just automated outputs.
The risk to the industry is clear. If a concerted effort is not made to better align hiring criteria and training systems with the changes AI is bringing about, we could lose the future leadership pipeline that has historically sustained the industry.
Agencies will be operationally efficient, but strategically commoditized without the ability to provide trained counsel to clients.
It is critical that agencies stop viewing training and onboarding as one-time events and move toward continuous learning models. They need to start treating early-career talent as a long-term strategic asset, directly tied to innovation, culture, succession planning and client value.
If agencies redesign talent intentionally, they can ensure the development of a more strategic, entrepreneurial and intellectually dynamic generation of agency leaders.
Opinions expressed by SmartBrief contributors are their own.
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