Many of the trends shaping creative and digital agencies will feel familiar, but the difference this year is maturity and execution.

What were emerging trends or legal uncertainties in 2025 have now crystallised. These issues are firmly embedded in how agencies operate, contract, and plan for the year ahead. In this Keynote, Commercial partner Rebecca Steer outlines some of the issues the industry should be aware of.

Gen AI – embedded, not experimental

Gen AI is now integral to agency operations – from ideation and content creation to testing, optimisation, and delivery. Clients of agencies are no longer asking if AI is being used, but how it is being governed and integrated into outputs. Contracts are being rewritten to accommodate new IP and risk considerations and proactive agencies have integrated tailored polices and legal best practice into workflows.

Personalisation still drives value – trust is the differentiator

Demand for personalised digital experiences remains strong, with brands expecting agencies to deliver increasingly tailored content across channels. The agencies that succeed will be those that balance creativity with transparency and consumer trust. Agencies which specialise will drive value for brands, especially in a year where online safety, data privacy, price transparency, and digital marketing will be heavily scrutinised by regulators such as the Competition and Markets Authority, Ofcom, and the Information Commissioner’s Office.

Cybersecurity

Cybersecurity is now a core agency risk. Agencies sit at the centre of complex digital supply chains – holding client data, managing platforms, deploying tools, and coordinating third-party providers. Cyber incidents can disrupt delivery, damage brand reputation, and trigger knock-on issues across clients and suppliers. Any incident could also lead to unexpected costs, fines, and contractual damages. The smart agencies have leaned into this risk and implemented response plans which are bespoke for their workstreams and supply chains. These agencies have considered cyber risk in collaboration with clients and suppliers and baked risk allocation and outcomes into contracts and insurance cover.

Recalibration, efficiency, and smarter growth

Agencies are recalibrating thoughtfully, given the efficiency being driven by AI investment. Many have invested heavily in training and experimenting with a wide suite of AI tools to support innovation, growth, and margins. Strategic consolidation between niche agencies is also driving growth as clients expect greater value from external teams.

A greater focus on IP development to commoditise and productise is now being prioritised. The legal challenge is to ensure that IP, especially copyright, is protected and can be monetised in this new AI era. Agencies should pay attention to the expected Economic Impact Assessment and Report on the use of copyright works in the development of AI systems expected in March 2026.

Employment Rights Act 2025 – planning ahead matters

Many agencies have restructured to better leverage AI and redefine roles. The most proactive agencies have planned how to implement the UK’s Employment Rights Act 2025 (the Act) to avoid losing talent and momentum. The Act will introduce significant changes, including enhanced worker protections, strengthened flexible working rights, and reforms impacting zero-hours arrangements. Key provisions are expected to come into force from April 2026 onwards.

Sustainability

Sustainability expectations remain high, with ESG obligations increasingly cascading down supply chains. Agencies are seeing more client-driven requirements around reporting, compliance, and environmental commitments. These expectations are now hard-wired into contracts, making it critical to understand what is being agreed – and how risk is allocated – before signing.

Looking back at 2025 – and ahead to 2026

Looking back at 2025, many of the same themes were already emerging – AI adoption, personalisation, efficiency, workforce change, and sustainability. What’s changed in 2026 is the shift from exploration to execution:

  • AI has moved from experimentation to embedded delivery.
  • Personalisation has moved from innovation to expectation.
  • Cyber risk has moved from a hypothetical technical issue to a real board-level concern.
  • Regulatory and employment change is no longer theoretical – it’s landing.

The agencies best positioned for 2026 are those that learned from 2025, investing early, building trust and value into client relationships, and embedding legal, commercial, and operational thinking into workflows.

If you have questions about the issues raised in this article, please contact Rebecca Steer. Rebecca advises founders, leadership teams, and in-house counsel on AI, IP, data, and commercial growth.