The bright and dark sides of value co-creation using generative AI: A survey of decision-makers in German advertising, communication and media agencies

Castulus Kolo, Tamara Ranner, Melanie Herfort and Dirk Kleine
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Castulus Kolo: President, Macromedia University of Applied Sciences, Germany
Tamara Ranner: Professor of Media Management, Macromedia University of Applied Sciences, Germany
Melanie Herfort: Interim Professor of Marketing, Hochschule der Medien, Germany
Dirk Kleine: Founder, NextGen Experiences, Germany

Journal of Brand Strategy, 2025, vol. 14, issue 1, 53-71

Abstract: Artificial intelligence (AI) is reshaping advertising, communication and media agencies, enhancing operational efficiency and creativity. These agencies, central to the media business and brand management across all industries, have transitioned from their traditional roles to digital marketing consultants, with AI significantly influencing this evolution in co-creating value. At the same time, AI also bears the risk of co-destruction. This paper examines AI’s current deployment, and its potential future impact based on a survey of 108 decision-makers from German agencies. Results show varied AI adoption across different types of agencies and specific aspects of the overall value creation process, while the orchestration of AI deployment still appears to be in an experimental stage. Decision-makers see enormous further opportunities and also warn of challenges. AI is seen to have already had a strong impact on productivity and is also likely to lead to substantial job losses in the future.

Keywords: artificial intelligence; advertising; brand management; agencies; value co-creation; value co-destruction; service-dominant logic (search for similar items in EconPapers)
JEL-codes: M3 (search for similar items in EconPapers)
Date: 2025
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