Marketing and PR agencies are no strangers to change, but recent trends in downsizing are a wake-up call. Edelman, the world’s largest privately-held PR firm, recently announced its second round of layoffs in less than a year, letting go of 330 employees—over 5% of its workforce. Other major players like Weber Shandwick and Ketchum have also reduced staff in response to shifting market conditions.
What’s driving this wave of cutbacks? Economic pressures are certainly playing a significant role. Despite a media narrative of economic recovery, key indicators tell a different story. Canada’s unemployment rate recently hit 6.8 per cent, its highest in nearly eight years outside of the pandemic. GDP growth in the third quarter of 2024 slowed to just 1 per cent, falling short of expectations, and the country is experiencing its eighth consecutive monthly trade deficit. Even the Bank of Canada’s continuing interest rate cuts signal that the economy is in need of a boost.
For PR agencies, these pressures translate into tightened budgets. This reality, combined with the rapid adoption of generative AI, is changing how PR agencies operate and forcing the the profession to adapt to a ‘new normal’.
Generative AI tools like ChatGPT and Claude are reshaping the PR landscape, offering efficiencies that were unimaginable a few years ago. Tasks like drafting news releases, creating social media content, and generating reports can now be completed in minutes. For PR professionals, this is both a blessing and a challenge.
AI allows us to work smarter, freeing up time for strategic thinking and relationship building. It enables agencies to personalize pitches at scale, analyze media trends in real time, and brainstorm creative campaign ideas. For smaller operations, like mine, these efficiencies are a game-changer, leveling the playing field with larger marketing agencies.
AI’s Impact on Public Relations
On the other hand, the ubiquity of AI raises questions about its impact on the workforce. Entry-level roles that once focused on administrative tasks are increasingly automated. I’m wondering how young people will get their first agency job opportunities. At the same time, AI creates new possiblities for PR professionals who can master these tools and use them to enhance their work. The profession is shifting—it will not disappear. Here’s how:
Efficiency: By automating repetitive tasks, AI allows us to focus on high-value activities like crafting compelling narratives and managing relationships. This efficiency also raises the bar for creativity and strategy—what AI can’t do, PR pros can do better.
Data-Driven Insights: AI-powered tools like Meltwater, Cision, and Agility PR are making it easier to monitor media coverage, track sentiment, and measure campaign impact. This data helps PRs to refine strategies and demonstrate our ROI more effectively.
The Human Element: Despite its capabilities, AI can’t replace the authenticity and emotional intelligence required to build trust with clients and media. PR remains a relationship-driven business, and that’s where human professionals will always have the edge.
While AI is changing the PR profession, but it’s not taking away the essence of what we do: building connections, telling stories, and creating impact. Agencies that embrace AI thoughtfully will thrive, but they’ll also need to invest in their people—training them to use these tools effectively while focusing on the human skills that make PR indispensable.
The key is adaptability. Those PR firms that integrate AI into their workflows while maintaining the creativity, strategy, and relationship-building that define our profession will remain well-positioned.
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